/biz/ - Business & Finance

>>14020064
they are in seperate sectors and prices and returns will be completely different depending on market variables.

RIO will mostly track XME, unless it outperforms or underperforms.
If metal prices in general go UP, it's very good for RIO's margins. For metal companies, commodity prices are the primary driver.

If metal prices go UP, it hurts CAT's margins because it's a raw input cost. But CAT's business MIGHT go up if there is a movement in prices that results in enough new mines being opened to necessitate a lot of equipment orders

I would suggest to look up what % of CAT's revenue comes from mining equipment vs. road construction and farming equipment, and what the margins are.

Basically for a mining play, I'd go with XME, but I'm boring.
CAT also is an OK buy at these prices, nothing wrong with CAT. RIO I dunno