ALRS vs OTTR

For growth investors, Otter Tail Corporation (OTTR) is the stronger pick with -2.

0% revenue growth year-over-year, versus -3. 1% for Alerus Financial Corporation (ALRS). Otter Tail Corporation (OTTR) offers the better valuation at 13. 7x trailing P/E (15. 7x forward), making it the more compelling value choice. Analysts rate Alerus Financial Corporation (ALRS) a "Hold" — based on 5 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.

On trailing P/E, Otter Tail Corporation (OTTR) is the cheapest at 13.

7x versus Alerus Financial Corporation at 44. 6x. On forward P/E, Alerus Financial Corporation is actually cheaper at 10. 3x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Otter Tail Corporation (OTTR) delivered a total return of +99.

6%, compared to +4. 7% for Alerus Financial Corporation (ALRS). Over 10 years, the gap is even starker: OTTR returned +237. 6% versus ALRS's +106. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Otter Tail Corporation (OTTR) is the lower-risk stock at 0.

25β versus Alerus Financial Corporation's 0. 79β — meaning ALRS is approximately 216% more volatile than OTTR relative to the S&P 500. On balance sheet safety, Otter Tail Corporation (OTTR) carries a lower debt/equity ratio of 59% versus 78% for Alerus Financial Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Otter Tail Corporation (OTTR) is pulling ahead at -2.

0% versus -3. 1% for Alerus Financial Corporation (ALRS). On earnings-per-share growth, the picture is similar: Otter Tail Corporation grew EPS -8. 6% year-over-year, compared to -18. 1% for Alerus Financial Corporation. 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.

Otter Tail Corporation (OTTR) is the more profitable company, earning 21.

2% net margin versus 5. 3% for Alerus Financial Corporation — 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 6. 9% for ALRS. At the gross margin level — before operating expenses — ALRS leads at 67. 2%, 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.

On forward earnings alone, Alerus Financial Corporation (ALRS) trades at 10.

3x forward P/E versus 15. 7x for Otter Tail Corporation — 5. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ALRS: -5. 1% to $28. 75.

All stocks in this comparison pay dividends.

Alerus Financial Corporation (ALRS) offers the highest yield at 2. 7%, versus 2. 3% for Otter Tail Corporation (OTTR).

For long-horizon retirement investors, Otter Tail Corporation (OTTR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

25), 2. 3% yield, +237. 6% 10Y return). Both have compounded well over 10 years (OTTR: +237. 6%, ALRS: +106. 8%), 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.

These companies operate in different sectors (ALRS (Financial Services) and OTTR (Utilities)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: ALRS is a small-cap quality compounder 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.