Anglo American Platinum vs Rio Tinto Which Is More Lucrative?

Anglo American Platinum and Rio Tinto are two prominent players in the mining industry, with both companies primarily focused on the extraction of precious metals such as platinum and other minerals. Investors looking to gain exposure to the mining sector may consider comparing the stock performance of Anglo American Platinum and Rio Tinto. Understanding the differences in their business models, financials, and market outlook can help investors make informed decisions on which stock may present a more attractive investment opportunity.

Anglo American Platinum or Rio Tinto?

When comparing Anglo American Platinum and Rio Tinto, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Anglo American Platinum and Rio Tinto.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Anglo American Platinum has a dividend yield of 3.02%, while Rio Tinto has a dividend yield of 6.84%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Anglo American Platinum reports a 5-year dividend growth of 44.71% year and a payout ratio of 44.90%. On the other hand, Rio Tinto reports a 5-year dividend growth of 5.54% year and a payout ratio of 63.95%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Anglo American Platinum P/E ratio at 2.26 and Rio Tinto's P/E ratio at 9.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Anglo American Platinum P/B ratio is 0.25 while Rio Tinto's P/B ratio is 1.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Anglo American Platinum has seen a 5-year revenue growth of 8.98%, while Rio Tinto's is 0.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Anglo American Platinum's ROE at 11.46% and Rio Tinto's ROE at 19.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.59 for Anglo American Platinum and $63.22 for Rio Tinto. Over the past year, Anglo American Platinum's prices ranged from $4.80 to $8.98, with a yearly change of 87.08%. Rio Tinto's prices fluctuated between $59.35 and $75.09, with a yearly change of 26.52%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.