WallStSmart

The AES Corporation (AES)vsAllete Inc (ALE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The AES Corporation generates 715% more annual revenue ($12.23B vs $1.50B). ALE leads profitability with a 11.0% profit margin vs 7.4%. AES appears more attractively valued with a PEG of 1.09. AES earns a higher WallStSmart Score of 55/100 (C).

AES

Buy

55

out of 100

Grade: C

Growth: 2.7Profit: 5.0Value: 7.3Quality: 2.5
Piotroski: 2/9Altman Z: 0.44

ALE

Hold

43

out of 100

Grade: D

Growth: 2.7Profit: 5.0Value: 4.7Quality: 5.5
Piotroski: 2/9Altman Z: 1.01
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AESSignificantly Overvalued (-84.5%)

Margin of Safety

-84.5%

Fair Value

$8.91

Current Price

$14.06

$5.15 premium

UndervaluedFair: $8.91Overvalued
ALESignificantly Overvalued (-250.4%)

Margin of Safety

-250.4%

Fair Value

$19.38

Current Price

$67.90

$48.52 premium

UndervaluedFair: $19.38Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AES2 strengths · Avg: 9.0/10
P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

ALE1 strengths · Avg: 10.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Areas to Watch

AES4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

Return on EquityProfitability
1.9%3/10

ROE of 1.9% — below average capital efficiency

Profit MarginProfitability
7.4%3/10

7.4% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

ALE4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.6%3/10

ROE of 2.6% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.572/10

Expensive relative to growth rate

Revenue GrowthGrowth
-7.9%2/10

Revenue declined 7.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : AES

The strongest argument for AES centers on P/E Ratio, Price/Book. PEG of 1.09 suggests the stock is reasonably priced for its growth.

Bull Case : ALE

The strongest argument for ALE centers on Price/Book.

Bear Case : AES

The primary concerns for AES are Revenue Growth, Return on Equity, Profit Margin. Debt-to-equity of 7.98 is elevated, increasing financial risk.

Bear Case : ALE

The primary concerns for ALE are Return on Equity, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

AES profiles as a value stock while ALE is a declining play — different risk/reward profiles.

AES carries more volatility with a beta of 0.94 — expect wider price swings.

AES is growing revenue faster at 4.7% — sustainability is the question.

AES generates stronger free cash flow (-47M), providing more financial flexibility.

Bottom Line

AES scores higher overall (55/100 vs 43/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

The AES Corporation

UTILITIES · UTILITIES - DIVERSIFIED · USA

The AES Corporation is a Fortune 500 company that generates and distributes electrical power. AES is headquartered in Arlington, Virginia.

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Allete Inc

UTILITIES · UTILITIES - DIVERSIFIED · USA

ALLETE, Inc. is an energy company. The company is headquartered in Duluth, Minnesota.

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