ALRS vs OTTR vs NWE vs NBTB

For growth investors, NBT Bancorp Inc.

(NBTB) is the stronger pick with 10. 4% 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. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Otter Tail Corporation wins at 0. 69x versus NBT Bancorp Inc. 's 1. 64x — a PEG below 1. 0 traditionally signals the market is underpricing 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 NWE's +57. 1%. 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), Northwestern Energy Group Inc (NWE) is the lower-risk stock at 0.

16β versus Alerus Financial Corporation's 0. 79β — meaning ALRS is approximately 385% more volatile than NWE relative to the S&P 500. On balance sheet safety, NBT Bancorp Inc. (NBTB) carries a lower debt/equity ratio of 17% versus 114% for Northwestern Energy Group Inc — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), NBT Bancorp Inc.

(NBTB) is pulling ahead at 10. 4% versus -3. 1% for Alerus Financial Corporation (ALRS). On earnings-per-share growth, the picture is similar: NBT Bancorp Inc. grew EPS 12. 5% year-over-year, compared to -19. 5% for Northwestern Energy Group Inc. Over a 3-year CAGR, NWE leads at 2. 9% 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.

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 — NWE leads at 82. 3%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Otter Tail Corporation (OTTR) is the more undervalued stock at a PEG of 0. 69x versus NBT Bancorp Inc. 's 1. 64x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Alerus Financial Corporation (ALRS) trades at 10. 3x forward P/E versus 19. 0x for Northwestern Energy Group Inc — 8. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NBTB: -4. 5% to $46. 00.

All stocks in this comparison pay dividends.

Northwestern Energy Group Inc (NWE) offers the highest yield at 3. 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) and NWE (Utilities) and NBTB (Financial Services)), 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; NWE is a small-cap income-oriented stock; NBTB 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.