Wanting to see the money up front, Credit Suisse prefers Rio Tinto to Vale

|About: Rio Tinto plc (RIO)|By:, SA News Editor

Even as Rio Tinto (RIO -0.2%) has risen 23% in the past year while Vale (VALE +0.8%) has slipped 9%, and Rio trades at 10x forward earnings vs. Vale's 6.5x, analysts at Credit Suisse does not see a bargain opportunity for investors eyeing Vale.

The firm sees Rio as the safer bet between the two, figuring investors prefer to see the money up front that at a time when iron ore pricing is soft.

Also, Rio already has gone through large capital investments and is expected to step up sales volumes this year, but Vale is where Rio was a year ago and is not expected to ramp up production until 2016.