Allete Inc (ALE)vsSouthern Company (SO)
ALE
Allete Inc
$67.90
0.00%
UTILITIES · Cap: $3.94B
SO
Southern Company
$85.52
-1.43%
UTILITIES · Cap: $100.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 1912% more annual revenue ($30.18B vs $1.50B). SO leads profitability with a 15.4% profit margin vs 11.0%. SO appears more attractively valued with a PEG of 2.07. SO earns a higher WallStSmart Score of 66/100 (B-).
ALE
Hold43
out of 100
Grade: D
SO
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-12.9%
Fair Value
$60.16
Current Price
$67.90
$7.74 premium
Margin of Safety
-38.4%
Fair Value
$62.12
Current Price
$85.52
$23.40 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 29.6%
Earnings expanding 30.4% YoY
Areas to Watch
ROE of 5.8% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Revenue declined 7.9%
Expensive relative to growth rate
0.1% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ALE
The strongest argument for ALE centers on Price/Book.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 29.6%.
Bear Case : ALE
The primary concerns for ALE are Return on Equity, Piotroski F-Score, PEG Ratio.
Bear Case : SO
The primary concerns for SO are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.95 is elevated, increasing financial risk.
Key Dynamics to Monitor
ALE profiles as a declining stock while SO is a value play — different risk/reward profiles.
ALE carries more volatility with a beta of 0.82 — expect wider price swings.
SO is growing revenue faster at 0.1% — sustainability is the question.
ALE generates stronger free cash flow (-174M), providing more financial flexibility.
Bottom Line
SO scores higher overall (66/100 vs 43/100), backed by strong 15.4% margins. 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.
Visit Website →Southern Company
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.
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