WallStSmart

Allete Inc (ALE)vsEnergy of Minas Gerais Co DRC (CIG-C)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Energy of Minas Gerais Co DRC generates 2728% more annual revenue ($42.43B vs $1.50B). ALE leads profitability with a 11.0% profit margin vs 9.5%. CIG-C appears more attractively valued with a PEG of 0.33. CIG-C earns a higher WallStSmart Score of 54/100 (C-).

ALE

Hold

43

out of 100

Grade: D

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

CIG-C

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 8.0Quality: 5.0
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
CIG-CFair Value (-1.0%)

Margin of Safety

-1.0%

Fair Value

$2.92

Current Price

$3.06

$0.14 premium

UndervaluedFair: $2.92Overvalued

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

CIG-C3 strengths · Avg: 9.3/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

P/E RatioValuation
6.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

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%

CIG-C2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

EPS GrowthGrowth
-75.7%2/10

Earnings declined 75.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : ALE

The strongest argument for ALE centers on Price/Book.

Bull Case : CIG-C

The strongest argument for CIG-C centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.33 suggests the stock is reasonably priced for its growth.

Bear Case : ALE

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

Bear Case : CIG-C

The primary concerns for CIG-C are Revenue Growth, EPS Growth.

Key Dynamics to Monitor

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

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

CIG-C is growing revenue faster at 4.6% — sustainability is the question.

CIG-C generates stronger free cash flow (440M), providing more financial flexibility.

Bottom Line

CIG-C scores higher overall (54/100 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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Energy of Minas Gerais Co DRC

UTILITIES · UTILITIES - DIVERSIFIED · USA

Companhia Energtica de Minas Gerais, is dedicated to the generation, transmission, distribution and sale of energy in Brazil. The company is headquartered in Belo Horizonte, Brazil.

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