WallStSmart

Allete Inc (ALE)vsAvista Corporation (AVA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Avista Corporation generates 31% more annual revenue ($1.96B vs $1.50B). ALE leads profitability with a 11.0% profit margin vs 9.8%. ALE appears more attractively valued with a PEG of 2.57. AVA earns a higher WallStSmart Score of 56/100 (C).

ALE

Hold

43

out of 100

Grade: D

Growth: 2.7Profit: 5.0Value: 4.7Quality: 4.5
Piotroski: 2/9Altman Z: 1.01

AVA

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 5.5Value: 5.3Quality: 3.0
Piotroski: 2/9Altman Z: 0.83
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALEUndervalued (+4.1%)

Margin of Safety

+4.1%

Fair Value

$70.80

Current Price

$67.90

$2.90 discount

UndervaluedFair: $70.80Overvalued
AVAUndervalued (+2.2%)

Margin of Safety

+2.2%

Fair Value

$42.65

Current Price

$40.58

$2.07 discount

UndervaluedFair: $42.65Overvalued

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

AVA3 strengths · Avg: 8.7/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
20.8%8/10

Strong operational efficiency at 20.8%

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%

AVA4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

EPS GrowthGrowth
2.8%4/10

2.8% earnings growth

Return on EquityProfitability
7.3%3/10

ROE of 7.3% — below average capital efficiency

Debt/EquityHealth
1.213/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ALE

The strongest argument for ALE centers on Price/Book.

Bull Case : AVA

The strongest argument for AVA centers on Price/Book, P/E Ratio, Operating Margin.

Bear Case : ALE

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

Bear Case : AVA

The primary concerns for AVA are Revenue Growth, EPS Growth, Return on Equity.

Key Dynamics to Monitor

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

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

AVA is growing revenue faster at 0.0% — sustainability is the question.

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

Bottom Line

AVA scores higher overall (56/100 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.

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Avista Corporation

UTILITIES · UTILITIES - DIVERSIFIED · USA

Avista Corporation is a natural gas and electric utility company. The company is headquartered in Spokane, Washington.

Visit Website →

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