ALE
ALLETE, Inc.
Diversified Utilities
Market Cap$3.94B
5Y Perf.+15.6%
Compare Stocks
2 / 10Try these comparisons:
Stock Comparison
ALE vs OTTR
Revenue, margins, valuation, and 5-year total return — side by side.
OTTR
Otter Tail Corporation
Diversified Utilities
Market Cap$3.73B
5Y Perf.+91.6%
ALE vs OTTR — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ALE | OTTR |
|---|---|---|
| Industry | Diversified Utilities | Diversified Utilities |
| Market Cap | $3.94B | $3.73B |
| Revenue (TTM) | $1.50B | $1.31B |
| Net Income (TTM) | $166M | $280M |
| Gross Margin | 27.7% | 34.9% |
| Operating Margin | 9.2% | 26.4% |
| Forward P/E | 16.6x | 16.1x |
| Total Debt | $1.81B | $1.10B |
| Cash & Equiv. | $53M | $386M |
ALE vs OTTR — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
ALE
OTTR
| Stock | May 20 | Dec 25 | Return |
|---|---|---|---|
| ALLETE, Inc. (ALE) | 100 | 115.6 | +15.6% |
| Otter Tail Corporat… (OTTR) | 100 | 191.6 | +91.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ALE vs OTTR
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: OTTR leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. ALLETE, Inc. is the stronger pick specifically for capital preservation and lower volatility and dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
ALE
ALLETE, Inc.
The Income Pick
ALE is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 13 yrs, beta 0.06, yield 4.1%
- Lower volatility, beta 0.06, Low D/E 53.4%, current ratio 1.08x
- Beta 0.06, yield 4.1%, current ratio 1.08x
Best for: income & stability and sleep-well-at-night
OTTR
Otter Tail Corporation
The Growth Play
OTTR carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth -2.0%, EPS growth -8.6%, 3Y rev CAGR -3.7%
- 249.3% 10Y total return vs ALE's 60.8%
- -2.0% revenue growth vs ALE's -18.6%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | OTTR | -2.0% revenue growth vs ALE's -18.6% |
| Value | OTTR | Lower P/E (16.1x vs 16.6x) |
| Quality / Margins | OTTR | 21.3% margin vs ALE's 11.0% |
| Stability / Safety | ALE | Beta 0.06 vs OTTR's 0.42, lower leverage |
| Dividends | ALE | 4.1% yield, 13-year raise streak, vs OTTR's 2.4% |
| Momentum (1Y) | OTTR | +20.6% vs ALE's +5.9% |
| Efficiency (ROA) | OTTR | 7.1% ROA vs ALE's 2.3%, ROIC 10.4% vs 2.3% |
ALE vs OTTR — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2024
FY 2025
ALE vs OTTR — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLOTTRLAGGINGALE
ALEALLETE, Inc.
2leads
OTTROtter Tail Corporation
4leads
6 Total Categories
CATEGORYLEADERvs ALEMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
OTTR6/6
Valuation MetricsMultiples, price ratios, and targets
OTTR4/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
OTTR7/8
Total Returns1Y, 3Y, 5Y total returns with dividends
OTTR5/5
Risk & VolatilityBeta, volatility, and downside exposure
ALE2/2
Analyst OutlookRatings, price targets, and dividends
ALE2/2
Income & Cash Flow (Last 12 Months)
OTTR leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
ALE and OTTR operate at a comparable scale, with $1.5B and $1.3B in trailing revenue. OTTR is the more profitable business, keeping 21.3% of every revenue dollar as net income compared to ALE's 11.0%. On growth, OTTR holds the edge at +2.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ALEALLETE, Inc. | OTTROtter Tail Corpor… |
|---|---|---|
| RevenueTrailing 12 months | $1.5B | $1.3B |
| EBITDAEarnings before interest/tax | $430M | $466M |
| Net IncomeAfter-tax profit | $166M | $280M |
| Free Cash FlowCash after capex | -$322M | $2M |
| Gross MarginGross profit ÷ Revenue | +27.7% | +34.9% |
| Operating MarginEBIT ÷ Revenue | +9.2% | +26.4% |
| Net MarginNet income ÷ Revenue | +11.0% | +21.3% |
| FCF MarginFCF ÷ Revenue | -21.5% | +0.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | -7.9% | +2.9% |
| EPS Growth (YoY)Latest quarter vs prior year | -40.1% | +6.8% |
OTTR leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
OTTR leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 13.6x trailing earnings, OTTR trades at a 38% valuation discount to ALE's 21.9x P/E. On an enterprise value basis, OTTR's 9.6x EV/EBITDA is more attractive than ALE's 13.0x.
| Metric | ALEALLETE, Inc. | OTTROtter Tail Corpor… |
|---|---|---|
| Market CapShares × price | $3.9B | $3.7B |
| Enterprise ValueMkt cap + debt − cash | $5.7B | $4.4B |
| Trailing P/EPrice ÷ TTM EPS | 21.89x | 13.57x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.60x | 16.07x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.59x |
| EV / EBITDAEnterprise value multiple | 13.01x | 9.59x |
| Price / SalesMarket cap ÷ Revenue | 2.58x | 2.86x |
| Price / BookPrice ÷ Book value/share | 1.16x | 2.01x |
| Price / FCFMarket cap ÷ FCF | 38.60x | 38.09x |
OTTR leads this category, winning 4 of 6 comparable metrics.
Profitability & Efficiency
OTTR leads this category, winning 7 of 8 comparable metrics.
Profitability & Efficiency
OTTR delivers a 15.2% return on equity — every $100 of shareholder capital generates $15 in annual profit, vs $5 for ALE. ALE carries lower financial leverage with a 0.53x debt-to-equity ratio, signaling a more conservative balance sheet compared to OTTR's 0.59x.
| Metric | ALEALLETE, Inc. | OTTROtter Tail Corpor… |
|---|---|---|
| ROE (TTM)Return on equity | +5.0% | +15.2% |
| ROA (TTM)Return on assets | +2.3% | +7.1% |
| ROICReturn on invested capital | +2.3% | +10.4% |
| ROCEReturn on capital employed | +2.3% | +9.9% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 4 |
| Debt / EquityFinancial leverage | 0.53x | 0.59x |
| Net DebtTotal debt minus cash | $1.8B | $718M |
| Cash & Equiv.Liquid assets | $53M | $386M |
| Total DebtShort + long-term debt | $1.8B | $1.1B |
| Interest CoverageEBIT ÷ Interest expense | 1.96x | 7.32x |
OTTR leads this category, winning 7 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
OTTR leads this category, winning 5 of 5 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in OTTR five years ago would be worth $20,179 today (with dividends reinvested), compared to $11,370 for ALE. Over the past 12 months, OTTR leads with a +20.6% total return vs ALE's +5.9%. The 3-year compound annual growth rate (CAGR) favors OTTR at 6.5% vs ALE's 6.2% — a key indicator of consistent wealth creation.
| Metric | ALEALLETE, Inc. | OTTROtter Tail Corpor… |
|---|---|---|
| YTD ReturnYear-to-date | — | +9.8% |
| 1-Year ReturnPast 12 months | +5.9% | +20.6% |
| 3-Year ReturnCumulative with dividends | +19.9% | +20.8% |
| 5-Year ReturnCumulative with dividends | +13.7% | +101.8% |
| 10-Year ReturnCumulative with dividends | +60.8% | +249.3% |
| CAGR (3Y)Annualised 3-year return | +6.2% | +6.5% |
OTTR leads this category, winning 5 of 5 comparable metrics.
Risk & Volatility
ALE leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
ALE is the less volatile stock with a 0.06 beta — it tends to amplify market swings less than OTTR's 0.42 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ALE currently trades 99.9% from its 52-week high vs OTTR's 96.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ALEALLETE, Inc. | OTTROtter Tail Corpor… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.06x | 0.42x |
| 52-Week HighHighest price in past year | $67.99 | $92.24 |
| 52-Week LowLowest price in past year | $62.38 | $73.74 |
| % of 52W HighCurrent price vs 52-week peak | +99.9% | +96.4% |
| RSI (14)Momentum oscillator 0–100 | 67.9 | 50.9 |
| Avg Volume (50D)Average daily shares traded | 3.6M | 278K |
ALE leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
ALE leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates ALE as "Hold" and OTTR as "Hold". Consensus price targets imply -8.9% upside for OTTR (target: $81) vs -14.6% for ALE (target: $58). For income investors, ALE offers the higher dividend yield at 4.15% vs OTTR's 2.35%.
| Metric | ALEALLETE, Inc. | OTTROtter Tail Corpor… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $58.00 | $81.00 |
| # AnalystsCovering analysts | 16 | 7 |
| Dividend YieldAnnual dividend ÷ price | +4.1% | +2.4% |
| Dividend StreakConsecutive years of raises | 13 | 11 |
| Dividend / ShareAnnual DPS | $2.82 | $2.09 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
ALE leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
OTTR leads in 4 of 6 categories (Income & Cash Flow, Valuation Metrics). ALE leads in 2 (Risk & Volatility, Analyst Outlook).
Best OverallOtter Tail Corporation (OTTR)Leads 4 of 6 categories
Loading custom metrics...
ALE vs OTTR: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ALE or OTTR a better buy right now?
For growth investors, Otter Tail Corporation (OTTR) is the stronger pick with -2.
0% revenue growth year-over-year, versus -18. 6% for ALLETE, Inc. (ALE). Otter Tail Corporation (OTTR) offers the better valuation at 13. 6x trailing P/E (16. 1x forward), making it the more compelling value choice. Analysts rate ALLETE, Inc. (ALE) a "Hold" — based on 16 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ALE or OTTR?
On trailing P/E, Otter Tail Corporation (OTTR) is the cheapest at 13.
6x versus ALLETE, Inc. at 21. 9x. On forward P/E, Otter Tail Corporation is actually cheaper at 16. 1x.
03Which is the better long-term investment — ALE or OTTR?
Over the past 5 years, Otter Tail Corporation (OTTR) delivered a total return of +101.
8%, compared to +13. 7% for ALLETE, Inc. (ALE). Over 10 years, the gap is even starker: OTTR returned +249. 3% versus ALE's +60. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ALE or OTTR?
By beta (market sensitivity over 5 years), ALLETE, Inc.
(ALE) is the lower-risk stock at 0. 06β versus Otter Tail Corporation's 0. 42β — meaning OTTR is approximately 668% more volatile than ALE relative to the S&P 500. On balance sheet safety, ALLETE, Inc. (ALE) carries a lower debt/equity ratio of 53% versus 59% for Otter Tail Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — ALE or OTTR?
By revenue growth (latest reported year), Otter Tail Corporation (OTTR) is pulling ahead at -2.
0% versus -18. 6% for ALLETE, Inc. (ALE). On earnings-per-share growth, the picture is similar: Otter Tail Corporation grew EPS -8. 6% year-over-year, compared to -27. 9% for ALLETE, Inc.. Over a 3-year CAGR, ALE leads at 2. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — ALE or OTTR?
Otter Tail Corporation (OTTR) is the more profitable company, earning 21.
2% net margin versus 11. 7% for ALLETE, Inc. — meaning it keeps 21. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: OTTR leads at 26. 5% versus 10. 5% for ALE. At the gross margin level — before operating expenses — ALE leads at 32. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is ALE or OTTR more undervalued right now?
On forward earnings alone, Otter Tail Corporation (OTTR) trades at 16.
1x forward P/E versus 16. 6x for ALLETE, Inc. — 0. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for OTTR: -8. 9% to $81. 00.
08Which pays a better dividend — ALE or OTTR?
All stocks in this comparison pay dividends.
ALLETE, Inc. (ALE) offers the highest yield at 4. 1%, versus 2. 4% for Otter Tail Corporation (OTTR).
09Is ALE or OTTR better for a retirement portfolio?
For long-horizon retirement investors, ALLETE, Inc.
(ALE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 06), 4. 1% yield). Both have compounded well over 10 years (ALE: +60. 8%, OTTR: +249. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between ALE and OTTR?
Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: ALE is a small-cap income-oriented stock; OTTR is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform both.
Revenue Growth>
%
(ALE: -7.9% · OTTR: 2.9%)Net Margin>
%
(ALE: 11.0% · OTTR: 21.3%)P/E Ratio<
x
(ALE: 21.9x · OTTR: 13.6x)You Might Also Compare
Based on how these companies actually compete and overlap — not just which sector they're filed under.