WallStSmart

Allete Inc (ALE)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TransAlta Corp generates 51% more annual revenue ($2.27B vs $1.50B). ALE leads profitability with a 11.0% profit margin vs -1.0%. ALE appears more attractively valued with a PEG of 2.57. TAC earns a higher WallStSmart Score of 43/100 (D).

ALE

Hold

43

out of 100

Grade: D

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

TAC

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 4.5Value: 4.0Quality: 2.5
Piotroski: 2/9Altman Z: -0.05
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALEOvervalued (-12.8%)

Margin of Safety

-12.8%

Fair Value

$60.17

Current Price

$67.90

$7.73 premium

UndervaluedFair: $60.17Overvalued

Intrinsic value data unavailable for TAC.

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

TAC1 strengths · Avg: 10.0/10
Operating MarginProfitability
33.3%10/10

Strong operational efficiency at 33.3%

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%

TAC4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
6.982/10

Expensive relative to growth rate

Return on EquityProfitability
-12.1%2/10

ROE of -12.1% — below average capital efficiency

EPS GrowthGrowth
-71.6%2/10

Earnings declined 71.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : ALE

The strongest argument for ALE centers on Price/Book.

Bull Case : TAC

The strongest argument for TAC centers on Operating Margin. Revenue growth of 12.5% demonstrates continued momentum.

Bear Case : ALE

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

Bear Case : TAC

The primary concerns for TAC are Piotroski F-Score, PEG Ratio, Return on Equity. Debt-to-equity of 2.38 is elevated, increasing financial risk.

Key Dynamics to Monitor

ALE profiles as a declining stock while TAC is a turnaround play — different risk/reward profiles.

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

TAC is growing revenue faster at 12.5% — sustainability is the question.

TAC generates stronger free cash flow (17M), providing more financial flexibility.

Bottom Line

ALE scores higher overall (43/100 vs 43/100). Both earn "Hold" 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 →

TransAlta Corp

UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA

TransAlta Corporation owns, operates and develops a diverse fleet of electric power generation assets in Canada, the United States and Australia. The company is headquartered in Calgary, Canada.

Want to dig deeper into these stocks?