Critical Comparison: China Natural Resources (NASDAQ:CHNR) & Rio Tinto (NYSE:RIO)

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

Profitability

This table compares Rio Tinto and China Natural 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
China Natural Resources	N/A	N/A	N/A

Insider & Institutional Ownership

19.3% of Rio Tinto shares are owned by institutional investors. Comparatively, 0.0% of China Natural Resources shares are owned by institutional investors. 23.2% of China Natural Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Rio Tinto and China Natural Resources”s gross 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	2.43	$9.97 billion	N/A	N/A
China Natural Resources	N/A	N/A	-$430,000.00	N/A	N/A

Rio Tinto has higher revenue and earnings than China Natural Resources.

Analyst Recommendations

This is a summary of current ratings and target prices for Rio Tinto and China Natural Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rio Tinto	0	11	4	0	2.27
China Natural Resources	1	0	0	0	1.00

Rio Tinto currently has a consensus target price of $101.75, indicating a potential downside of 8.93%. Given Rio Tinto’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Rio Tinto is more favorable than China Natural Resources.

Risk and Volatility

Rio Tinto has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, China Natural Resources has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.

Summary

Rio Tinto beats China Natural Resources on 7 of the 8 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 China Natural Resources

China Natural Resources, Inc., through its subsidiaries, engages in the exploration and mining of metal properties in the People's Republic of China. It explores for lead, silver, and other nonferrous metals. The company holds interest in the Moruogu Tong mine that covers an area of 7.81 square kilometers located in Bayannaoer City, Inner Mongolia. It also offers equipment for rural wastewater treatment; and engineering. The company was incorporated in 1993 and is headquartered in Sheung Wan, Hong Kong. China Natural Resources, Inc. operates as a subsidiary of Feishang Industrial Group Co., Ltd.