WallStSmart

Allete Inc (ALE)vsAlgonquin Power & Utilities Corp (AQN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Algonquin Power & Utilities Corp generates 69% more annual revenue ($2.53B vs $1.50B). ALE leads profitability with a 11.0% profit margin vs 6.7%. AQN trades at a lower P/E of 22.9x. AQN earns a higher WallStSmart Score of 52/100 (C-).

ALE

Hold

43

out of 100

Grade: D

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

AQN

Buy

52

out of 100

Grade: C-

Growth: 3.3Profit: 5.0Value: 7.0Quality: 4.0
Piotroski: 5/9Altman Z: 0.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALEOvervalued (-12.7%)

Margin of Safety

-12.7%

Fair Value

$60.26

Current Price

$67.90

$7.64 premium

UndervaluedFair: $60.26Overvalued
AQNUndervalued (+70.3%)

Margin of Safety

+70.3%

Fair Value

$22.27

Current Price

$6.01

$16.26 discount

UndervaluedFair: $22.27Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Reasonable price relative to book value

AQN2 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Operating MarginProfitability
22.6%8/10

Strong operational efficiency at 22.6%

Areas to Watch

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%

AQN4 concerns · Avg: 2.8/10
Return on EquityProfitability
3.6%3/10

ROE of 3.6% — below average capital efficiency

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

Debt/EquityHealth
1.443/10

Elevated debt levels

EPS GrowthGrowth
-10.7%2/10

Earnings declined 10.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : ALE

The strongest argument for ALE centers on Price/Book.

Bull Case : AQN

The strongest argument for AQN centers on Price/Book, Operating Margin. Revenue growth of 14.4% demonstrates continued momentum.

Bear Case : ALE

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

Bear Case : AQN

The primary concerns for AQN are Return on Equity, Profit Margin, Debt/Equity.

Key Dynamics to Monitor

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

AQN carries more volatility with a beta of 0.90 — expect wider price swings.

AQN is growing revenue faster at 14.4% — sustainability is the question.

AQN generates stronger free cash flow (-85M), providing more financial flexibility.

Bottom Line

AQN scores higher overall (52/100 vs 43/100) and 14.4% revenue growth. 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.

Allete Inc

UTILITIES · UTILITIES - DIVERSIFIED · USA

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

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Algonquin Power & Utilities Corp

UTILITIES · UTILITIES - DIVERSIFIED · USA

Algonquin Power & Utilities Corp. The company is headquartered in Oakville, Canada.

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