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AA vs. RIO: Alcoa vs. Rio Tinto Stock Comparison

How do Alcoa (AA) and Rio Tinto (RIO) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Alcoa (AA) and Rio Tinto (RIO) both belong to the Metals & Mining industry, though AA is classified under Aluminum while RIO falls under Diversified Metals & Mining.

Alcoa (AA) trades as ordinary local shares, while Rio Tinto (RIO) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Alcoa (AA) and Rio Tinto (RIO)
Profile ItemAARIO
NameAlcoa CorporationRio Tinto plc ADR
Country/RegionUnited StatesUnited Kingdom
GICS SectorMaterialsMaterials
GICS Industry GroupMaterialsMaterials
GICS IndustryMetals & MiningMetals & Mining
GICS Sub-IndustryAluminumDiversified Metals & Mining
Market Capitalization10.44 billion USD136.19 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962June 28, 1990
Security TypeCommon StockADR

Price Performance

Cumulative Growth

AA
RIO
GSPC
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Alcoa (AA) vs. Rio Tinto (RIO), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Alcoa (AA) and Rio Tinto (RIO). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Alcoa (AA) and Rio Tinto (RIO). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Alcoa (AA) and Rio Tinto (RIO)
MetricAARIO
Total Return (1Y)12.55%30.54%
Total Return (3Y, Annualized)20.53%16.90%
Total Return (5Y, Annualized)-1.46%14.68%

Risk Profile

Drawdown History

AA
RIO
GSPC
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Alcoa (AA) vs. Rio Tinto (RIO), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Alcoa (AA) and Rio Tinto (RIO). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Alcoa (AA) has an aggressive beta of 1.80, indicating higher sensitivity to broad-market moves, while Rio Tinto (RIO) is defensive at 0.63 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

Risk profile metrics for Alcoa (AA) and Rio Tinto (RIO)
MetricAARIO
Volatility (1Y, Annualized)53.37%30.72%
Beta (5Y)1.800.63
Max Drawdown (5Y)-75.46%-35.25%
Avg. Volume (3M)4.61M2.35M

Risk-Adjusted Performance

Risk-Return Positioning

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AA and RIO are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Alcoa (AA) and Rio Tinto (RIO)
MetricAARIO
Sharpe Ratio (1Y)0.160.85
Sortino Ratio (1Y)0.231.26

Profitability

ROE (TTM)

Alcoa (AA) at 20.58% sits in the top ROE quartile, while Rio Tinto (RIO) at 19.31% is closer to the peer norm — stronger capital efficiency for AA.

AA

Materials industry group

20.58%

Max
52.88%
AA
20.58%
Q3
19.49%
Median
8.76%
Q1
-3.41%
Min
-32.81%

RIO

Materials industry group

19.31%

Max
52.88%
Q3
19.49%
RIO
19.31%
Median
8.76%
Q1
-3.41%
Min
-32.81%
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Alcoa (AA) vs. Rio Tinto (RIO): A comparison of their ROE against the Materials industry group benchmark.

Net Margin (TTM)

Rio Tinto (RIO) at 19.59% retains a top-quartile share of revenue as profit, ahead of Alcoa (AA) at 10.68%, which keeps about the industry-typical share.

AA

Materials industry group

10.68%

Max
38.66%
Q3
15.98%
AA
10.68%
Median
5.28%
Q1
0.00%
Min
-20.40%

RIO

Materials industry group

19.59%

Max
38.66%
RIO
19.59%
Q3
15.98%
Median
5.28%
Q1
0.00%
Min
-20.40%
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Alcoa (AA) vs. Rio Tinto (RIO): A comparison of their net margin against the Materials industry group benchmark.

Operating Margin (TTM)

Both Alcoa (AA) at 16.01% and Rio Tinto (RIO) at 28.05% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

AA

Materials industry group

16.01%

Max
66.70%
Q3
28.92%
AA
16.01%
Median
12.56%
Q1
3.28%
Min
-14.07%

RIO

Materials industry group

28.05%

Max
66.70%
Q3
28.92%
RIO
28.05%
Median
12.56%
Q1
3.28%
Min
-14.07%
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Alcoa (AA) vs. Rio Tinto (RIO): A comparison of their operating margin against the Materials industry group benchmark.

Profitability Metrics

Profitability metrics for Alcoa (AA) and Rio Tinto (RIO)
MetricAARIO
ROE (TTM)20.58%19.31%
ROA (TTM)7.52%8.11%
Net Margin (TTM)10.68%19.59%
Operating Margin (TTM)16.01%28.05%
Gross Margin (TTM)22.76%29.75%

Growth

Revenue Growth

Both Alcoa (AA) at 7.87% and Rio Tinto (RIO) at 7.42% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Alcoa (AA) vs. Rio Tinto (RIO): A comparison of their Revenue Growth across different time periods.

EPS Growth

Alcoa (AA) at 1,600.00% clears its industry range for EPS growth, a much stronger earnings trajectory than Rio Tinto (RIO) at -13.97%, which is closer to a typical peer reading.

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Alcoa (AA) vs. Rio Tinto (RIO): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Alcoa (AA) and Rio Tinto (RIO)
MetricAARIO
Revenue Growth (YoY)7.87%7.42%
Revenue Growth (3Y CAGR)1.01%1.24%
EPS Growth (YoY)1,600.00%-13.97%
EPS Growth (3Y CAGR)---7.23%

Financial Strength

Current Ratio (MRQ)

Alcoa (AA) at 2.31 keeps current ratio within its industry’s typical mid-range, while Rio Tinto (RIO) at 1.42 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for RIO.

AA

Materials industry group

2.31

Max
5.96
Q3
3.30
AA
2.31
Median
2.24
Q1
1.45
Min
0.16

RIO

Materials industry group

1.42

Max
5.96
Q3
3.30
Median
2.24
Q1
1.45
RIO
1.42
Min
0.16
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Alcoa (AA) vs. Rio Tinto (RIO): A comparison of their current ratio against the Materials industry group benchmark.

Debt / Equity (MRQ)

Both Alcoa (AA) at 0.58 and Rio Tinto (RIO) at 0.32 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

AA

Materials industry group

0.58

Max
1.98
Q3
0.89
AA
0.58
Median
0.47
Q1
0.13
Min
0.00

RIO

Materials industry group

0.32

Max
1.98
Q3
0.89
Median
0.47
RIO
0.32
Q1
0.13
Min
0.00
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Alcoa (AA) vs. Rio Tinto (RIO): A comparison of their debt-to-equity ratio against the Materials industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Alcoa (AA) and Rio Tinto (RIO)
MetricAARIO
Current Ratio (MRQ)2.311.42
Debt / Equity (MRQ)0.580.32
Net Debt / EBITDA0.140.58

Dividends

Dividend Yield (TTM)

Alcoa (AA) at 1.04% pays an industry-typical yield; Rio Tinto (RIO) at 5.59% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

AA

Materials industry group

1.04%

Max
4.52%
Q3
1.85%
AA
1.04%
Median
0.38%
Q1
0.00%
Min
0.00%

RIO

Materials industry group

5.59%

RIO
5.59%
Max
4.52%
Q3
1.85%
Median
0.38%
Q1
0.00%
Min
0.00%
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Alcoa (AA) vs. Rio Tinto (RIO): A comparison of their dividend yield against the Materials industry group benchmark.

Dividend Payout Ratio (TTM)

Alcoa (AA) at 6.96% pays out a band-typical share of earnings, while Rio Tinto (RIO) at 54.46% distributes more than its industry norm — less retained, thinner cover.

AA

Materials industry group

6.96%

Max
83.62%
Q3
41.37%
Median
9.54%
AA
6.96%
Q1
0.00%
Min
0.00%

RIO

Materials industry group

54.46%

Max
83.62%
RIO
54.46%
Q3
41.37%
Median
9.54%
Q1
0.00%
Min
0.00%
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Alcoa (AA) vs. Rio Tinto (RIO): A comparison of their payout ratio against the Materials industry group benchmark.

Dividend Metrics

Dividend metrics for Alcoa (AA) and Rio Tinto (RIO)
MetricAARIO
Dividend Yield (TTM)1.04%5.59%
Dividend Payout Ratio (TTM)6.96%54.46%

Valuation

P/E Ratio (TTM)

Both Alcoa (AA) at 6.88 and Rio Tinto (RIO) at 11.35 sit in the cheaper earnings-multiple quartile for P/E ratio, with the market paying less for a dollar of trailing earnings than it pays for typical peers.

AA

Materials industry group

6.88

Max
59.00
Q3
32.93
Median
18.82
Q1
11.96
AA
6.88
Min
3.93

RIO

Materials industry group

11.35

Max
59.00
Q3
32.93
Median
18.82
Q1
11.96
RIO
11.35
Min
3.93
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Alcoa (AA) vs. Rio Tinto (RIO): A comparison of their P/E ratio against the Materials industry group benchmark.

P/S Ratio (TTM)

Alcoa (AA) at 0.73 sits in the cheaper P/S ratio quartile while Rio Tinto (RIO) at 2.20 prices around its industry’s middle — AA costs less per dollar of sales, though read it alongside growth and margins.

AA

Materials industry group

0.73

Max
9.62
Q3
4.34
Median
1.87
Q1
0.73
AA
0.73
Min
0.00

RIO

Materials industry group

2.20

Max
9.62
Q3
4.34
RIO
2.20
Median
1.87
Q1
0.73
Min
0.00
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Alcoa (AA) vs. Rio Tinto (RIO): A comparison of their P/S ratio against the Materials industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Alcoa (AA) at 1.27 and Rio Tinto (RIO) at 2.08 are valued close to their industries’ norm against book — neither stands out from peers.

AA

Materials industry group

1.27

Max
6.59
Q3
3.55
Median
2.08
AA
1.27
Q1
1.26
Min
-0.17

RIO

Materials industry group

2.08

Max
6.59
Q3
3.55
Median
2.08
RIO
2.08
Q1
1.26
Min
-0.17
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Alcoa (AA) vs. Rio Tinto (RIO): A comparison of their P/B ratio against the Materials industry group benchmark.

Valuation Metrics

Valuation metrics for Alcoa (AA) and Rio Tinto (RIO)
MetricAARIO
P/E Ratio (TTM)6.8811.35
P/S Ratio (TTM)0.732.20
P/B Ratio (MRQ)1.272.08
Free Cash Flow Yield (TTM)8.80%2.64%