WallStSmart

Allete Inc (ALE)vsCompanhia Energetica de Minas Gerais CEMIG Pref ADR (CIG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Companhia Energetica de Minas Gerais CEMIG Pref ADR generates 2750% more annual revenue ($42.75B vs $1.50B). CIG leads profitability with a 11.5% profit margin vs 11.0%. CIG appears more attractively valued with a PEG of 0.33. CIG earns a higher WallStSmart Score of 72/100 (B).

ALE

Hold

43

out of 100

Grade: D

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

CIG

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 10.0Quality: 5.5
Piotroski: 2/9Altman Z: 1.82
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALESignificantly Overvalued (-250.4%)

Margin of Safety

-250.4%

Fair Value

$19.38

Current Price

$67.90

$48.52 premium

UndervaluedFair: $19.38Overvalued
CIGUndervalued (+84.7%)

Margin of Safety

+84.7%

Fair Value

$14.98

Current Price

$2.40

$12.58 discount

UndervaluedFair: $14.98Overvalued

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

CIG5 strengths · Avg: 9.6/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
88.1%10/10

Earnings expanding 88.1% YoY

Operating MarginProfitability
20.1%8/10

Strong operational efficiency at 20.1%

Areas to Watch

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%

CIG3 concerns · Avg: 3.7/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ALE

The strongest argument for ALE centers on Price/Book.

Bull Case : CIG

The strongest argument for CIG centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.33 suggests the stock is reasonably priced for its growth.

Bear Case : ALE

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

Bear Case : CIG

The primary concerns for CIG are Revenue Growth, Altman Z-Score, Piotroski F-Score.

Key Dynamics to Monitor

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

ALE carries more volatility with a beta of 0.82 — expect wider price swings.

CIG is growing revenue faster at 2.9% — sustainability is the question.

CIG generates stronger free cash flow (440M), providing more financial flexibility.

Bottom Line

CIG scores higher overall (72/100 vs 43/100). 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.

Allete Inc

UTILITIES · UTILITIES - DIVERSIFIED · USA

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

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Companhia Energetica de Minas Gerais CEMIG Pref ADR

UTILITIES · UTILITIES - DIVERSIFIED · USA

Companhia Energtica de Minas Gerais, is dedicated to the generation, transmission, distribution and sale of energy in Brazil. The company is headquartered in Belo Horizonte, Brazil.

Visit Website →

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