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

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

Institutional and Insider Ownership

19.3% of Rio Tinto shares are held by institutional investors. Comparatively, 0.0% of China Natural Resources shares are held by institutional investors. 23.2% of China Natural Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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

Analyst Ratings

This is a summary of recent ratings and price targets 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 upside of 0.85%. 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.

Volatility & Risk

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rio Tinto	$57.64 billion	2.20	$9.97 billion	N/A	N/A
China Natural Resources	N/A	N/A	-$180,000.00	N/A	N/A

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

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.