ALE vs. PNW, OGE, IDA, POR, OTTR, PNM, MGEE, ARRY, HE, and UTL
Should you be buying ALLETE stock or one of its competitors? The main competitors of ALLETE include Pinnacle West Capital (PNW), OGE Energy (OGE), IDACORP (IDA), Portland General Electric (POR), Otter Tail (OTTR), PNM Resources (PNM), MGE Energy (MGEE), Array Technologies (ARRY), Hawaiian Electric Industries (HE), and Unitil (UTL). These companies are all part of the "electric utilities" industry.
ALLETE (NYSE:ALE) and Pinnacle West Capital (NYSE:PNW) are both mid-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, media sentiment, analyst recommendations, risk, dividends, institutional ownership, earnings, community ranking and profitability.
In the previous week, ALLETE had 4 more articles in the media than Pinnacle West Capital. MarketBeat recorded 10 mentions for ALLETE and 6 mentions for Pinnacle West Capital. Pinnacle West Capital's average media sentiment score of 0.93 beat ALLETE's score of 0.80 indicating that Pinnacle West Capital is being referred to more favorably in the news media.
Pinnacle West Capital has higher revenue and earnings than ALLETE. ALLETE is trading at a lower price-to-earnings ratio than Pinnacle West Capital, indicating that it is currently the more affordable of the two stocks.
ALLETE has a net margin of 13.94% compared to Pinnacle West Capital's net margin of 11.09%. Pinnacle West Capital's return on equity of 8.29% beat ALLETE's return on equity.
ALLETE has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Pinnacle West Capital has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.
ALLETE currently has a consensus target price of $60.40, indicating a potential downside of 4.35%. Pinnacle West Capital has a consensus target price of $74.58, indicating a potential downside of 5.42%. Given ALLETE's higher probable upside, equities research analysts plainly believe ALLETE is more favorable than Pinnacle West Capital.
76.6% of ALLETE shares are held by institutional investors. Comparatively, 91.5% of Pinnacle West Capital shares are held by institutional investors. 0.2% of ALLETE shares are held by company insiders. Comparatively, 0.2% of Pinnacle West Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
ALLETE pays an annual dividend of $2.82 per share and has a dividend yield of 4.5%. Pinnacle West Capital pays an annual dividend of $3.52 per share and has a dividend yield of 4.5%. ALLETE pays out 67.8% of its earnings in the form of a dividend. Pinnacle West Capital pays out 76.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ALLETE is clearly the better dividend stock, given its higher yield and lower payout ratio.
Pinnacle West Capital received 99 more outperform votes than ALLETE when rated by MarketBeat users. However, 52.00% of users gave ALLETE an outperform vote while only 42.08% of users gave Pinnacle West Capital an outperform vote.
Summary
Pinnacle West Capital beats ALLETE on 10 of the 19 factors compared between the two stocks.
Get ALLETE News Delivered to You Automatically
Sign up to receive the latest news and ratings for ALE and its competitors with MarketBeat's FREE daily newsletter.
This chart shows the number of new MarketBeat users adding ALE and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
Related Companies and Tools
