LIN vs. RIO: A Head-to-Head Stock Comparison
Here’s a clear look at LIN and RIO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | LIN | RIO |
|---|---|---|
| Company Name | Linde plc | Rio Tinto Group |
| Country | United Kingdom | United Kingdom |
| GICS Sector | Materials | Materials |
| GICS Industry Group | Materials | Materials |
| GICS Industry | Chemicals | Metals & Mining |
| GICS Sub-Industry | Industrial Gases | Diversified Metals & Mining |
| Market Capitalization | 233.21 billion USD | 175.47 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | June 17, 1992 | June 28, 1990 |
| Security Type | Common Stock | ADR |
LIN is a standard domestic listing, while RIO trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.
LIN’s market capitalization stands at 233.21 billion USD, while RIO’s is 175.47 billion USD, indicating their market valuations are broadly comparable.
RIO is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. LIN, on the other hand, is a domestic entity.
Historical Performance
This chart compares the performance of LIN and RIO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | LIN | RIO |
|---|---|---|
| 5-Day Price Return | 0.82% | 7.46% |
| 13-Week Price Return | 12.53% | 16.13% |
| 26-Week Price Return | 22.37% | 47.89% |
| 52-Week Price Return | 11.43% | 68.68% |
| Month-to-Date Return | 0.65% | 7.88% |
| Year-to-Date Return | 18.30% | 32.25% |
| 10-Day Avg. Volume | 2.18M | 1.37M |
| 3-Month Avg. Volume | 2.48M | 2.02M |
| 3-Month Volatility | 20.14% | 32.08% |
| Beta | 0.75 | 1.31 |
RIO carries a higher beta at 1.31, indicating it’s more sensitive to market moves, while LIN (beta: 0.75) exhibits greater stability.
Profitability
Return on Equity (TTM)
LIN
18.40%
Chemicals Industry
- Max
- 29.95%
- Q3
- 10.45%
- Median
- 3.77%
- Q1
- -7.41%
- Min
- -33.63%
In the upper quartile for the Chemicals industry, LIN’s Return on Equity of 18.40% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
RIO
18.11%
Metals & Mining Industry
- Max
- 42.25%
- Q3
- 21.22%
- Median
- 12.20%
- Q1
- 5.06%
- Min
- -17.83%
RIO’s Return on Equity of 18.11% is on par with the norm for the Metals & Mining industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
LIN
20.44%
Chemicals Industry
- Max
- 20.54%
- Q3
- 7.22%
- Median
- 2.51%
- Q1
- -3.08%
- Min
- -15.82%
A Net Profit Margin of 20.44% places LIN in the upper quartile for the Chemicals industry, signifying strong profitability and more effective cost management than most of its peers.
RIO
17.29%
Metals & Mining Industry
- Max
- 61.01%
- Q3
- 27.39%
- Median
- 12.19%
- Q1
- 4.72%
- Min
- -20.48%
RIO’s Net Profit Margin of 17.29% is aligned with the median group of its peers in the Metals & Mining industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
LIN
26.48%
Chemicals Industry
- Max
- 32.38%
- Q3
- 12.98%
- Median
- 6.82%
- Q1
- -1.79%
- Min
- -14.13%
An Operating Profit Margin of 26.48% places LIN in the upper quartile for the Chemicals industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
RIO
25.91%
Metals & Mining Industry
- Max
- 90.15%
- Q3
- 42.76%
- Median
- 19.77%
- Q1
- 6.26%
- Min
- -39.91%
RIO’s Operating Profit Margin of 25.91% is around the midpoint for the Metals & Mining industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | LIN | RIO |
|---|---|---|
| Return on Equity (TTM) | 18.40% | 18.11% |
| Return on Assets (TTM) | 8.21% | 9.19% |
| Net Profit Margin (TTM) | 20.44% | 17.29% |
| Operating Profit Margin (TTM) | 26.48% | 25.91% |
| Gross Profit Margin (TTM) | 48.77% | -- |
Financial Strength
Current Ratio (MRQ)
LIN
0.83
Chemicals Industry
- Max
- 4.10
- Q3
- 2.55
- Median
- 1.82
- Q1
- 1.35
- Min
- 0.83
LIN’s Current Ratio of 0.83 falls into the lower quartile for the Chemicals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
RIO
1.53
Metals & Mining Industry
- Max
- 5.16
- Q3
- 3.14
- Median
- 2.59
- Q1
- 1.75
- Min
- 0.54
RIO’s Current Ratio of 1.53 falls into the lower quartile for the Metals & Mining industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
LIN
0.68
Chemicals Industry
- Max
- 2.41
- Q3
- 1.30
- Median
- 0.79
- Q1
- 0.55
- Min
- 0.00
LIN’s Debt-to-Equity Ratio of 0.68 is typical for the Chemicals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
RIO
0.41
Metals & Mining Industry
- Max
- 1.06
- Q3
- 0.50
- Median
- 0.28
- Q1
- 0.11
- Min
- 0.00
RIO’s Debt-to-Equity Ratio of 0.41 is typical for the Metals & Mining industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
LIN
34.45
Chemicals Industry
- Max
- 15.12
- Q3
- 8.96
- Median
- 2.23
- Q1
- -0.23
- Min
- -6.63
With an Interest Coverage Ratio of 34.45, LIN demonstrates a superior capacity to service its debt, placing it well above the typical range for the Chemicals industry. This stems from either robust earnings or a conservative debt load.
RIO
9.07
Metals & Mining Industry
- Max
- 42.22
- Q3
- 22.98
- Median
- 6.63
- Q1
- 2.00
- Min
- -13.32
RIO’s Interest Coverage Ratio of 9.07 is positioned comfortably within the norm for the Metals & Mining industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | LIN | RIO |
|---|---|---|
| Current Ratio (MRQ) | 0.83 | 1.53 |
| Quick Ratio (MRQ) | 0.62 | 1.03 |
| Debt-to-Equity Ratio (MRQ) | 0.68 | 0.41 |
| Interest Coverage Ratio (TTM) | 34.45 | 9.07 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | LIN | RIO |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 8.25% | 14.56% |
| Revenue Growth (TTM vs Prior YoY) | 4.96% | 7.42% |
| 3-Year Revenue CAGR | 0.62% | 1.24% |
| 5-Year Revenue CAGR | 4.52% | 5.26% |
EPS Growth
EPS Growth at a Glance
| Symbol | LIN | RIO |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 13.37% | -5.56% |
| EPS Growth (TTM vs Prior YoY) | 9.36% | -13.97% |
| 3-Year EPS CAGR | 21.09% | -7.16% |
| 5-Year EPS CAGR | 25.41% | 0.28% |
Dividend
Dividend Yield (TTM)
LIN
1.22%
Chemicals Industry
- Max
- 4.48%
- Q3
- 2.95%
- Median
- 2.04%
- Q1
- 1.02%
- Min
- 0.00%
LIN’s Dividend Yield of 1.22% is consistent with its peers in the Chemicals industry, providing a dividend return that is standard for its sector.
RIO
3.42%
Metals & Mining Industry
- Max
- 2.92%
- Q3
- 1.35%
- Median
- 0.48%
- Q1
- 0.00%
- Min
- 0.00%
RIO’s Dividend Yield of 3.42% is exceptionally high, placing it well above the typical range for the Metals & Mining industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
LIN
40.16%
Chemicals Industry
- Max
- 125.87%
- Q3
- 74.70%
- Median
- 40.16%
- Q1
- 21.00%
- Min
- 0.00%
LIN’s Dividend Payout Ratio of 40.16% is within the typical range for the Chemicals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
RIO
61.66%
Metals & Mining Industry
- Max
- 70.98%
- Q3
- 31.99%
- Median
- 15.38%
- Q1
- 0.00%
- Min
- 0.00%
RIO’s Dividend Payout Ratio of 61.66% is in the upper quartile for the Metals & Mining industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | LIN | RIO |
|---|---|---|
| Dividend Yield (TTM) | 1.22% | 3.42% |
| Dividend Payout Ratio (TTM) | 40.16% | 61.66% |
Valuation
Price-to-Earnings Ratio (TTM)
LIN
32.95
Chemicals Industry
- Max
- 73.82
- Q3
- 40.02
- Median
- 29.24
- Q1
- 16.53
- Min
- 12.51
LIN’s P/E Ratio of 32.95 is within the middle range for the Chemicals industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
RIO
18.01
Metals & Mining Industry
- Max
- 59.02
- Q3
- 35.81
- Median
- 22.28
- Q1
- 16.40
- Min
- 6.27
RIO’s P/E Ratio of 18.01 is within the middle range for the Metals & Mining industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
LIN
6.73
Chemicals Industry
- Max
- 4.43
- Q3
- 2.14
- Median
- 1.15
- Q1
- 0.57
- Min
- 0.09
With a P/S Ratio of 6.73, LIN trades at a valuation that eclipses even the highest in the Chemicals industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
RIO
3.11
Metals & Mining Industry
- Max
- 11.56
- Q3
- 6.67
- Median
- 3.28
- Q1
- 1.37
- Min
- 0.20
RIO’s P/S Ratio of 3.11 aligns with the market consensus for the Metals & Mining industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
LIN
5.96
Chemicals Industry
- Max
- 4.50
- Q3
- 3.09
- Median
- 1.57
- Q1
- 1.20
- Min
- 0.33
At 5.96, LIN’s P/B Ratio is at an extreme premium to the Chemicals industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
RIO
1.69
Metals & Mining Industry
- Max
- 6.56
- Q3
- 4.10
- Median
- 2.78
- Q1
- 1.74
- Min
- 0.41
RIO’s P/B Ratio of 1.69 is in the lower quartile for the Metals & Mining industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | LIN | RIO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 32.95 | 18.01 |
| Price-to-Sales Ratio (TTM) | 6.73 | 3.11 |
| Price-to-Book Ratio (MRQ) | 5.96 | 1.69 |
| Price-to-Free Cash Flow Ratio (TTM) | 45.79 | 39.91 |