ALLETE (ALE) Competitors

ALLETE (NYSE:ALE) and Pinnacle West Capital (NYSE:PNW) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, community ranking, valuation, profitability, dividends, institutional ownership, analyst recommendations and media sentiment.

Is ALE or PNW a better dividend stock?

ALLETE pays an annual dividend of $2.92 per share and has a dividend yield of 4.5%. Pinnacle West Capital pays an annual dividend of $3.58 per share and has a dividend yield of 3.9%. ALLETE pays out 94.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pinnacle West Capital pays out 67.8% of its earnings in the form of a dividend. ALLETE has raised its dividend for 15 consecutive years. ALLETE is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do analysts prefer ALE or PNW?

ALLETE presently has a consensus target price of $67.00, suggesting a potential upside of 2.38%. Pinnacle West Capital has a consensus target price of $85.21, suggesting a potential downside of 7.00%. Given ALLETE's stronger consensus rating and higher probable upside, analysts plainly believe ALLETE is more favorable than Pinnacle West Capital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ALLETE	0 Sell rating(s)	1 Hold rating(s)	0 Buy rating(s)	1 Strong Buy rating(s)	3.00
Pinnacle West Capital	0 Sell rating(s)	7 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.42

Does the MarketBeat Community believe in ALE or PNW?

Pinnacle West Capital received 103 more outperform votes than ALLETE when rated by MarketBeat users. However, 49.57% of users gave ALLETE an outperform vote while only 41.76% of users gave Pinnacle West Capital an outperform vote.

Company	Underperform	Outperform
ALLETE	Outperform Votes 287 49.57%	Underperform Votes 292 50.43%
Pinnacle West Capital	Outperform Votes 390 41.76%	Underperform Votes 544 58.24%

Does the media prefer ALE or PNW?

In the previous week, Pinnacle West Capital had 4 more articles in the media than ALLETE. MarketBeat recorded 8 mentions for Pinnacle West Capital and 4 mentions for ALLETE. ALLETE's average media sentiment score of 1.41 beat Pinnacle West Capital's score of 1.10 indicating that ALLETE is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
ALLETE	4 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Pinnacle West Capital	6 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is ALE or PNW more profitable?

Pinnacle West Capital has a net margin of 12.26% compared to ALLETE's net margin of 11.72%. Pinnacle West Capital's return on equity of 9.60% beat ALLETE's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
ALLETE	11.72%	5.97%	3.03%
Pinnacle West Capital	12.26%	9.60%	2.43%

Which has preferable valuation & earnings, ALE or PNW?

Pinnacle West Capital has higher revenue and earnings than ALLETE. Pinnacle West Capital is trading at a lower price-to-earnings ratio than ALLETE, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ALLETE	$1.53B	2.48	$179.30M	$3.10	21.11
Pinnacle West Capital	$4.70B	2.22	$501.56M	$5.28	17.35

Do institutionals and insiders have more ownership in ALE or PNW?

76.6% of ALLETE shares are owned by institutional investors. Comparatively, 91.5% of Pinnacle West Capital shares are owned by institutional investors. 0.2% of ALLETE shares are owned by insiders. Comparatively, 0.2% of Pinnacle West Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Which has more volatility & risk, ALE or PNW?

ALLETE has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Pinnacle West Capital has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Summary

ALLETE beats Pinnacle West Capital on 11 of the 21 factors compared between the two stocks.