WallStSmart

Allete Inc (ALE)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TransAlta Corp generates 47% more annual revenue ($2.21B vs $1.50B). ALE leads profitability with a 11.0% profit margin vs -7.7%. ALE appears more attractively valued with a PEG of 2.57. ALE 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

Avoid

33

out of 100

Grade: F

Growth: 2.0Profit: 4.0Value: 4.0Quality: 2.5
Piotroski: 2/9Altman Z: -0.19
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALEOvervalued (-12.7%)

Margin of Safety

-12.7%

Fair Value

$60.26

Current Price

$67.90

$7.64 premium

UndervaluedFair: $60.26Overvalued

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

TAC0 strengths · Avg: 0/10

No standout strengths identified

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: 2.8/10
Price/BookValuation
11.3x4/10

Trading at 11.3x book value

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

Comparative Analysis Report

WallStSmart Research

Bull Case : ALE

The strongest argument for ALE centers on Price/Book.

Bull Case : TAC

TAC has a balanced fundamental profile.

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 Price/Book, Piotroski F-Score, PEG Ratio. Debt-to-equity of 3.17 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.

ALE is growing revenue faster at -7.9% — sustainability is the question.

TAC generates stronger free cash flow (93M), providing more financial flexibility.

Bottom Line

ALE scores higher overall (43/100 vs 33/100). Both earn "Hold" and "Avoid" 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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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.

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