Excellon Resources (OTCMKTS:EXNRF) versus Rio Tinto (NYSE:RIO) Financial Analysis

Rio Tinto (NYSE:RIO) and Excellon Resources (OTCMKTS:EXNRF) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Institutional & Insider Ownership

19.3% of Rio Tinto shares are owned by institutional investors. 3.2% of Excellon Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Rio Tinto and Excellon Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rio Tinto	0	10	4	1	2.40
Excellon Resources	0	0	0	0	0.00

Rio Tinto presently has a consensus price target of $81.00, indicating a potential downside of 2.48%. Given Rio Tinto’s stronger consensus rating and higher probable upside, equities analysts plainly believe Rio Tinto is more favorable than Excellon Resources.

Valuation and Earnings

This table compares Rio Tinto and Excellon Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rio Tinto	$57.64 billion	1.81	$9.97 billion	N/A	N/A
Excellon Resources	N/A	N/A	-$5.22 million	($0.03)	-9.21

Rio Tinto has higher revenue and earnings than Excellon Resources.

Volatility & Risk

Rio Tinto has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Excellon Resources has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rio Tinto	N/A	N/A	N/A
Excellon Resources	N/A	-30.93%	-14.38%

Summary

Rio Tinto beats Excellon Resources on 9 of the 11 factors compared between the two stocks.

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.

About Excellon Resources

Excellon Resources Inc. engages in the acquisition, exploration, and advancement of mineral properties. It primarily explores for silver, lead, zinc, and gold deposits, as well as base metals. The company holds 100% interests in the Platosa property covering an area of approximately 11,000 hectares located in Durango State, Mexico; the Evolución property that covers an area of 31,280 hectares situated in the states of Durango and Zacatecas, Mexico; and the Silver City project totaling an area of 340 square kilometers in Saxony, Germany. It also holds 100% interests in the Kilgore project comprising 789 unpatented federal lode claims that covers an area of 6,788 hectares located in Clark County, eastern Idaho; and the Oakley project covering an area of 2,833 hectares in Oakley, Idaho. In addition, the company has an option to acquire the La Negra project located in Querétaro State, Mexico. Excellon Resources Inc. was incorporated in 1987 and is based in Toronto, Canada.