WallStSmart

Allete Inc (ALE)vsSempra Energy (SRE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sempra Energy generates 813% more annual revenue ($13.70B vs $1.50B). SRE leads profitability with a 13.4% profit margin vs 11.0%. SRE appears more attractively valued with a PEG of 1.98. SRE earns a higher WallStSmart Score of 52/100 (C-).

ALE

Hold

43

out of 100

Grade: D

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

SRE

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 6.0Value: 7.3Quality: 4.3
Piotroski: 3/9Altman Z: 0.87
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
SRESignificantly Overvalued (-387.6%)

Margin of Safety

-387.6%

Fair Value

$18.70

Current Price

$95.32

$76.62 premium

UndervaluedFair: $18.70Overvalued

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

SRE3 strengths · Avg: 8.3/10
Market CapQuality
$62.06B9/10

Large-cap with strong market position

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.7%8/10

Strong operational efficiency at 27.7%

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%

SRE4 concerns · Avg: 3.5/10
PEG RatioValuation
1.984/10

Expensive relative to growth rate

P/E RatioValuation
34.5x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
5.2%3/10

ROE of 5.2% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ALE

The strongest argument for ALE centers on Price/Book.

Bull Case : SRE

The strongest argument for SRE centers on Market Cap, Price/Book, Operating Margin.

Bear Case : ALE

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

Bear Case : SRE

The primary concerns for SRE are PEG Ratio, P/E Ratio, Return on Equity.

Key Dynamics to Monitor

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

SRE is growing revenue faster at -0.2% — sustainability is the question.

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

Monitor UTILITIES - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SRE scores higher overall (52/100 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.

Allete Inc

UTILITIES · UTILITIES - DIVERSIFIED · USA

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

Visit Website →

Sempra Energy

UTILITIES · UTILITIES - DIVERSIFIED · USA

Sempra Energy is a North American energy infrastructure company based in San Diego, California. Sempra Energy's focus is on electric and natural gas infrastructure. Its operating companies include: Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E) in Southern California; Oncor Electric Delivery Company (Oncor) in Texas; Sempra LNG; and IEnova, based in Mexico.

Want to dig deeper into these stocks?