Allete (ALE) Competitors

Allete (NYSE:ALE) and Evergy (NASDAQ:EVRG) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership, media sentiment and earnings.

Is ALE or EVRG more profitable?

Evergy has a net margin of 14.29% compared to Allete's net margin of 11.98%. Evergy's return on equity of 8.62% beat Allete's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Allete	11.98%	5.71%	2.83%
Evergy	14.29%	8.62%	2.66%

Do institutionals and insiders hold more shares of ALE or EVRG?

76.6% of Allete shares are held by institutional investors. Comparatively, 87.2% of Evergy shares are held by institutional investors. 0.3% of Allete shares are held by company insiders. Comparatively, 1.4% of Evergy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Which has stronger earnings and valuation, ALE or EVRG?

Evergy has higher revenue and earnings than Allete. Allete is trading at a lower price-to-earnings ratio than Evergy, 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	2.55	$179.30M	$3.17	21.25
Evergy	$5.88B	3.08	$873.50M	$3.64	21.63

Does the media favor ALE or EVRG?

In the previous week, Evergy had 15 more articles in the media than Allete. MarketBeat recorded 20 mentions for Evergy and 5 mentions for Allete. Allete's average media sentiment score of 1.07 beat Evergy's score of 1.01 indicating that Allete is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Allete	3 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Evergy	16 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts rate ALE or EVRG?

Evergy has a consensus price target of $78.07, suggesting a potential downside of 0.84%. Given Evergy's stronger consensus rating and higher possible upside, analysts plainly believe Evergy is more favorable than Allete.

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)	0 Strong Buy rating(s)	2.00
Evergy	0 Sell rating(s)	0 Hold rating(s)	8 Buy rating(s)	1 Strong Buy rating(s)	3.11

Is ALE or EVRG a better dividend stock?

Allete pays an annual dividend of $2.92 per share and has a dividend yield of 4.3%. Evergy pays an annual dividend of $2.67 per share and has a dividend yield of 3.4%. Allete pays out 92.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Evergy pays out 73.4% of its earnings in the form of a dividend. Allete has raised its dividend for 15 consecutive years and Evergy has raised its dividend for 20 consecutive years.

Which has more volatility and risk, ALE or EVRG?

Allete has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Evergy has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Summary

Evergy beats Allete on 16 of the 20 factors compared between the two stocks.