WallStSmart

Allete Inc (ALE)vsConstellation Energy Corp (CEG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Constellation Energy Corp generates 1602% more annual revenue ($25.53B vs $1.50B). ALE leads profitability with a 11.0% profit margin vs 9.1%. ALE appears more attractively valued with a PEG of 2.57. CEG earns a higher WallStSmart Score of 43/100 (D).

ALE

Hold

43

out of 100

Grade: D

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

CEG

Hold

43

out of 100

Grade: D

Growth: 4.0Profit: 6.5Value: 2.7Quality: 6.0
Piotroski: 6/9Altman Z: 1.14
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
CEGSignificantly Overvalued (-44.5%)

Margin of Safety

-44.5%

Fair Value

$191.58

Current Price

$322.78

$131.20 premium

UndervaluedFair: $191.58Overvalued

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

CEG1 strengths · Avg: 9.0/10
Market CapQuality
$111.52B9/10

Large-cap with strong market position

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%

CEG4 concerns · Avg: 2.0/10
PEG RatioValuation
3.742/10

Expensive relative to growth rate

P/E RatioValuation
41.6x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-48.9%2/10

Earnings declined 48.9%

Free Cash FlowQuality
$-181.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : ALE

The strongest argument for ALE centers on Price/Book.

Bull Case : CEG

The strongest argument for CEG centers on Market Cap. Revenue growth of 12.9% demonstrates continued momentum.

Bear Case : ALE

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

Bear Case : CEG

The primary concerns for CEG are PEG Ratio, P/E Ratio, EPS Growth. A P/E of 41.6x leaves little room for execution misses.

Key Dynamics to Monitor

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

CEG carries more volatility with a beta of 1.16 — expect wider price swings.

CEG is growing revenue faster at 12.9% — sustainability is the question.

ALE generates stronger free cash flow (-174M), 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.

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Constellation Energy Corp

UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA

Constellation Energy Corporation is an energy producer in the United States. The company is headquartered in Baltimore, Maryland.

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