Allete Inc (ALE)vsSempra Energy (SRE)
ALE
Allete Inc
$67.90
0.00%
UTILITIES · Cap: $3.94B
SRE
Sempra Energy
$83.34
-0.79%
UTILITIES · Cap: $54.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Sempra Energy generates 803% more annual revenue ($13.55B vs $1.50B). SRE leads profitability with a 16.8% profit margin vs 11.0%. SRE appears more attractively valued with a PEG of 0.70. SRE earns a higher WallStSmart Score of 68/100 (B-).
ALE
Hold43
out of 100
Grade: D
SRE
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-12.8%
Fair Value
$60.17
Current Price
$67.90
$7.73 premium
Margin of Safety
-36.8%
Fair Value
$60.93
Current Price
$83.34
$22.41 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 71.3% YoY
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 28.3%
Areas to Watch
ROE of 5.8% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Revenue declined 7.9%
ROE of 7.0% — below average capital efficiency
Elevated debt levels
Revenue declined 0.1%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : ALE
The strongest argument for ALE centers on Price/Book.
Bull Case : SRE
The strongest argument for SRE centers on EPS Growth, Market Cap, PEG Ratio. Profitability is solid with margins at 16.8% and operating margin at 28.3%. PEG of 0.70 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 : SRE
The primary concerns for SRE are Return on Equity, Debt/Equity, Revenue Growth.
Key Dynamics to Monitor
ALE carries more volatility with a beta of 0.82 — expect wider price swings.
SRE is growing revenue faster at -0.1% — 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 (68/100 vs 43/100), backed by strong 16.8% margins. Both earn "Strong 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.
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