RIO vs BHP vs VALE vs FCX vs AA

For growth investors, Alcoa Corporation (AA) is the stronger pick with 4.

5% revenue growth year-over-year, versus -7. 9% for BHP Group Limited (BHP). Alcoa Corporation (AA) offers the better valuation at 14. 2x trailing P/E (9. 0x forward), making it the more compelling value choice. Analysts rate Freeport-McMoRan Inc. (FCX) a "Buy" — based on 41 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Alcoa Corporation (AA) is the cheapest at 14.

2x versus Freeport-McMoRan Inc. at 38. 0x. On forward P/E, Vale S. A. is actually cheaper at 8. 0x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Freeport-McMoRan Inc. wins at 0. 71x versus BHP Group Limited's 5. 58x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Alcoa Corporation (AA) delivered a total return of +59.

8%, compared to +11. 0% for Vale S. A. (VALE). Over 10 years, the gap is even starker: VALE returned +453. 0% versus AA's +188. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Rio Tinto Group (RIO) is the lower-risk stock at 0.

98β versus Freeport-McMoRan Inc. 's 1. 79β — meaning FCX is approximately 83% more volatile than RIO relative to the S&P 500. On balance sheet safety, Alcoa Corporation (AA) carries a lower debt/equity ratio of 0% versus 56% for Vale S. A. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Alcoa Corporation (AA) is pulling ahead at 4.

5% versus -7. 9% for BHP Group Limited (BHP). On earnings-per-share growth, the picture is similar: Alcoa Corporation grew EPS 1486% year-over-year, compared to -57. 7% for Vale S. A.. Over a 3-year CAGR, FCX leads at 3. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Rio Tinto Group (RIO) is the more profitable company, earning 21.

5% net margin versus 6. 5% for Vale S. A. — meaning it keeps 21. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BHP leads at 38. 0% versus 7. 6% for AA. At the gross margin level — before operating expenses — BHP leads at 82. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Freeport-McMoRan Inc. (FCX) is the more undervalued stock at a PEG of 0. 71x versus BHP Group Limited's 5. 58x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Vale S. A. (VALE) trades at 8. 0x forward P/E versus 21. 3x for Freeport-McMoRan Inc. — 13. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FCX: 16. 1% to $67. 00.

All stocks in this comparison pay dividends.

Vale S. A. (VALE) offers the highest yield at 5. 2%, versus 0. 6% for Alcoa Corporation (AA).

For long-horizon retirement investors, Rio Tinto Group (RIO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

98), 4. 3% yield, +386. 2% 10Y return). Alcoa Corporation (AA) carries a higher beta of 1. 77 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (RIO: +386. 2%, AA: +188. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Basic Materials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: RIO is a large-cap deep-value stock; BHP is a large-cap income-oriented stock; VALE is a mid-cap income-oriented stock; FCX is a mid-cap quality compounder stock; AA is a mid-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.