With P/E ratios of 7.2 and 9, I think these FTSE 100 shares are bargains!

These FTSE 100 shares are on sale. Here’s why I think they’re worth serious consideration from savvy investors.

Rio Tinto

2024’s been a tough year for mining companies. Despite supply-side worries, prices of key commodities have sunk due to continued economic weakness in China.

Things have been especially difficult for major iron ore producers, too. Diversified miner Rio Tinto (LSE:RIO), for instance, recorded disappointing ore shipment forecasts again in the third quarter. At 84.5m tonnes, these missed estimates by around 800,000 tonnes.

This weakness reflects troubles in China’s property market in particular. It means that Rio’s share price has dropped 15% since the start of 2024.

As a consequence of this weakness, the mega miner today trades on a forward price-to-earnings (P/E) ratio of just nine times. I think this represents an attractive dip buying opportunity to consider.

I believe the long-term outlook for Rio remains extremely bright. It’s why I own its shares in my own portfolio.

For one, demand for industrial metals like iron ore, copper, and aluminium is tipped to boom in the coming decades. This is thanks to a plethora of factors including the growing green economy, ongoing urbanisation in emerging markets, and rapid global digitalisation.

I also like larger operators like this, as their considerable financial strength gives them additional growth opportunities. Rio itself put up $6.7bn last month to buy Arcadium Lithium, whose product is an essential material in electric car production.

I don’t think these phenomena are reflected in the cheapness of Rio Tinto’s shares.

One final thing to consider: the Footsie firm’s P/E ratio of 9 times is substantially lower than the corresponding readings of other diversified mining giants.

HSBC Holdings

HSBC‘s (LSE:HSBA) also under threat from China’s economic slowdown. But this isn’t all. The bank also faces mounting pressure on profit margins as global interest rates start to head lower.

Yet despite problems in Asia’s largest economy, the bank’s share price has headed in the opposite direction to Rio Tinto’s. It’s currently up 14% in the year to date.

While it’s not out of the woods, trading at HSBC has encouragingly beaten most expectations so far, driving investor interest. Revenue and pre-tax profit were up 5% and 10% respectively in quarter three, latest financials showed.

Despite recent price gains, HSBC’s shares still look dirt-cheap to me. Their forward P/E ratio of 7.2 times is almost half the FTSE 100 average (14.1 times).

The emerging markets bank is also much cheaper than most of its blue-chip peers based on predicted earnings.

I’d far sooner purchase HSBC shares than UK-focused shares like Lloyds and NatWest. And that’s not just because of its superior value.

Its focus on fast-growing Asia provides the opportunity for breakneck earnings growth thanks to rising regional wealth and population expansion. Like Rio Tinto, I think it’s a top bargain to consider.