Turquoise Hill Resources (NYSE: IVN) and Rio Tinto PLC (NYSE:RIO) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Dividends

Rio Tinto PLC pays an annual dividend of $2.36 per share and has a dividend yield of 5.3%. Turquoise Hill Resources does not pay a dividend.

Analyst Ratings

This is a summary of current ratings and price targets for Turquoise Hill Resources and Rio Tinto PLC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Turquoise Hill Resources 0 0 0 0 N/A
Rio Tinto PLC 1 3 14 0 2.72

Rio Tinto PLC has a consensus price target of $42.00, indicating a potential downside of 5.91%. Given Rio Tinto PLC’s higher probable upside, analysts clearly believe Rio Tinto PLC is more favorable than Turquoise Hill Resources.

Valuation & Earnings

This table compares Turquoise Hill Resources and Rio Tinto PLC’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Turquoise Hill Resources N/A N/A N/A N/A N/A
Rio Tinto PLC $37.60 billion 2.13 $15.22 billion N/A N/A

Rio Tinto PLC has higher revenue and earnings than Turquoise Hill Resources.

Profitability

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

Net Margins Return on Equity Return on Assets
Turquoise Hill Resources -0.19% 1.09% -0.01%
Rio Tinto PLC N/A N/A N/A

Insider and Institutional Ownership

7.2% of Rio Tinto PLC shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Rio Tinto PLC beats Turquoise Hill Resources on 7 of the 8 factors compared between the two stocks.

Turquoise Hill Resources Company Profile

Turquoise Hill Resources Ltd. is an international mining company. The Company focuses on the operation and further development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company’s principal material mineral resource property. The Company’s Oyu Tolgoi mine is held through approximately 65% interest in Oyu Tolgoi LLC (Oyu Tolgoi) and the remaining approximately 35% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes). The Company’s Oyu Tolgoi mine is located approximately 550 kilometers south of Ulaanbaatar, Mongolia’s capital city, and 80 kilometers north of the Mongolia-China border. The Company’s Mineralization on the property consists of porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).

Rio Tinto PLC Company Profile

Rio Tinto plc is a mining and metals company. The Company’s business is finding, mining and processing mineral resources. The Company’s segments include Iron Ore, Aluminium, Copper & Diamonds, Energy & Minerals and Other Operations. The Company operates an iron ore business, supplying the global seaborne iron ore trade. Its Iron Ore product operations are located in the Pilbara region of Western Australia. The Aluminium business includes bauxite mines, alumina refineries and aluminum smelters. Its bauxite mines are located in Australia, Brazil and Guinea. The Copper & Diamonds segment has managed operations in Australia, Canada, Mongolia and the United States, and non-managed operations in Chile and Indonesia. The Energy & Minerals segment consists of mining, refining and marketing operations in over 10 countries, across six sectors: borates, coal, iron ore concentrate and pellets, salt, titanium dioxide and uranium.

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