Head-To-Head Survey: ALLETE (NYSE:ALE) & AES (NYSE:AESC)

ALLETE (NYSE:ALEGet Free Report) and AES (NYSE:AESCGet Free Report) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Dividends

ALLETE pays an annual dividend of $2.82 per share and has a dividend yield of 4.8%. AES pays an annual dividend of $6.88 per share and has a dividend yield of 10.4%. ALLETE pays out 65.4% of its earnings in the form of a dividend. ALLETE has increased its dividend for 14 consecutive years.

Valuation & Earnings

This table compares ALLETE and AES’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ALLETE $1.90 billion 1.76 $189.30 million $4.31 13.52
AES $12.76 billion N/A N/A N/A N/A

ALLETE has higher earnings, but lower revenue than AES.

Analyst Ratings

This is a summary of current ratings and price targets for ALLETE and AES, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ALLETE 1 3 0 0 1.75
AES 0 0 0 0 N/A

ALLETE currently has a consensus target price of $58.50, suggesting a potential upside of 0.36%. Given ALLETE’s higher probable upside, analysts clearly believe ALLETE is more favorable than AES.

Insider and Institutional Ownership

75.9% of ALLETE shares are held by institutional investors. 0.2% of ALLETE shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares ALLETE and AES’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ALLETE 13.00% 7.34% 3.70%
AES N/A N/A N/A

Summary

ALLETE beats AES on 7 of the 10 factors compared between the two stocks.

About ALLETE

(Get Free Report)

ALLETE, Inc. operates as an energy company. The company operates through Regulated Operations, ALLETE Clean Energy, and Corporate and Other segments. It generates electricity from coal-fired, biomass co-fired / natural gas, hydroelectric, wind, and solar. The company provides regulated utility electric services in northwestern Wisconsin to approximately 15,000 electric customers, 13,000 natural gas customers, and 10,000 water customers, as well as regulated utility electric services in northeastern Minnesota to approximately 150,000 retail customers and 14 non-affiliated municipal customers. It also owns and maintains electric transmission assets in Wisconsin, Michigan, Minnesota, and Illinois. In addition, the company focuses on developing, acquiring, and operating clean and renewable energy projects; and owns and operates approximately 1,300 megawatts of wind energy generation facility. Further, it is involved in the coal mining operations in North Dakota; and real estate investment activities in Florida. The company owns and operates 162 substations with a total capacity of 10,116 megavolt amperes. It serves taconite mining, paper, pulp and secondary wood products, pipeline, and other industries. The company was formerly known as Minnesota Power, Inc. and changed its name to ALLETE, Inc. in May 2001. The company was incorporated in 1906 and is headquartered in Duluth, Minnesota.

About AES

(Get Free Report)

The AES Corporation operates as a diversified power generation and utility company. It owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. The company also owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses a range of fuels and technologies to generate electricity, including coal, gas, hydro, wind, solar, and biomass; and renewables, such as energy storage and landfill gas. The company owns and/or operates a generation portfolio of approximately 32,326 megawatts. It has operations in the United States, Puerto Rico, El Salvador, Chile, Colombia, Argentina, Brazil, Mexico, Central America, the Caribbean, Europe, and Asia. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia.

Receive News & Ratings for ALLETE Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ALLETE and related companies with MarketBeat.com's FREE daily email newsletter.