WallStSmart

The AES Corporation (AES)vsAllete Inc (ALE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The AES Corporation generates 770% more annual revenue ($13.05B vs $1.50B). AES leads profitability with a 14.3% profit margin vs 11.0%. AES appears more attractively valued with a PEG of 1.09. AES earns a higher WallStSmart Score of 73/100 (B).

AES

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 6.0Quality: 2.5
Piotroski: 2/9Altman Z: 0.48

ALE

Hold

43

out of 100

Grade: D

Growth: 2.7Profit: 5.0Value: 4.0Quality: 4.5
Piotroski: 2/9Altman Z: 1.01
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AESSignificantly Overvalued (-37.3%)

Margin of Safety

-37.3%

Fair Value

$11.97

Current Price

$14.79

$2.82 premium

UndervaluedFair: $11.97Overvalued
ALEOvervalued (-12.8%)

Margin of Safety

-12.8%

Fair Value

$60.17

Current Price

$67.90

$7.73 premium

UndervaluedFair: $60.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AES5 strengths · Avg: 9.2/10
P/E RatioValuation
5.5x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.3%10/10

Every $100 of equity generates 30 in profit

EPS GrowthGrowth
951.0%10/10

Earnings expanding 951.0% YoY

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
19.9%8/10

19.9% revenue growth

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

Reasonable price relative to book value

Areas to Watch

AES4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-597.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.482/10

Distress zone — elevated risk

Debt/EquityHealth
6.501/10

Elevated debt levels

ALE4 concerns · Avg: 2.5/10
Return on EquityProfitability
5.8%3/10

ROE of 5.8% — 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, Return on Equity, EPS Growth. Revenue growth of 19.9% demonstrates continued momentum. 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 Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 6.50 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 growth stock while ALE is a declining play — different risk/reward profiles.

AES carries more volatility with a beta of 0.95 — expect wider price swings.

AES is growing revenue faster at 19.9% — sustainability is the question.

ALE generates stronger free cash flow (-174M), providing more financial flexibility.

Bottom Line

AES scores higher overall (73/100 vs 43/100) and 19.9% revenue growth. Both earn "Strong 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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