Head-To-Head Comparison: Perpetua Resources (NASDAQ:PPTA) vs. Rio Tinto (NYSE:RIO)

Perpetua Resources (NASDAQ:PPTA) and Rio Tinto (NYSE:RIO) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Earnings & Valuation

This table compares Perpetua Resources and Rio Tinto”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perpetua Resources	N/A	N/A	-$14.48 million	($0.31)	-55.52
Rio Tinto	$53.66 billion	1.46	$11.55 billion	$6.45	9.69

Rio Tinto has higher revenue and earnings than Perpetua Resources. Perpetua Resources is trading at a lower price-to-earnings ratio than Rio Tinto, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Perpetua Resources and Rio Tinto, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perpetua Resources	0	0	5	1	3.17
Rio Tinto	0	4	3	2	2.78

Perpetua Resources presently has a consensus target price of $23.75, suggesting a potential upside of 38.00%. Rio Tinto has a consensus target price of $73.00, suggesting a potential upside of 16.76%. Given Perpetua Resources’ stronger consensus rating and higher possible upside, research analysts clearly believe Perpetua Resources is more favorable than Rio Tinto.

Insider and Institutional Ownership

70.1% of Perpetua Resources shares are held by institutional investors. Comparatively, 19.3% of Rio Tinto shares are held by institutional investors. 1.5% of Perpetua Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Perpetua Resources and Rio Tinto’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perpetua Resources	N/A	-11.07%	-10.57%
Rio Tinto	N/A	N/A	N/A

Summary

Rio Tinto beats Perpetua Resources on 7 of the 12 factors compared between the two stocks.

About Perpetua Resources

Perpetua Resources Corp. engages in the exploration and development of mineral properties in the United States. The company primarily explores for gold, silver, and antimony deposits. Its principal asset is the 100% owned Stibnite Gold project, which includes 1,672 unpatented lode claims, mill sites, and patented land holdings covering an area of approximately 11,548 hectares located in Valley County, Idaho. The company was formerly known as Midas Gold Corp. and changed its name to Perpetua Resources Corp. in February 2021. Perpetua Resources Corp. was incorporated in 2011 and is headquartered in Boise, Idaho.

About Rio Tinto

Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company operates through Iron Ore, Aluminium, Copper, and Minerals Segments. The Iron Ore segment engages in the iron ore mining, and salt and gypsum production in Western Australia. The Aluminum segment is involved in bauxite mining; alumina refining; and aluminium smelting. The Copper segment engages in mining and refining of copper, gold, silver, molybdenum, and other by-products and exploration activities. The Minerals segment is involved in mining and processing of borates, titanium dioxide feedstock, and iron concentrate and pellets; diamond mining, sorting, and marketing; and development projects for battery materials, such as lithium. It also owns and operates open pit and underground mines; and refineries, smelters, processing plants and power, and shipping facilities. Rio Tinto Group was founded in 1873 and is headquartered in London, the United Kingdom.