Engie Brasl Ega (OTCMKTS:EGIEY) vs. Allete (NYSE:ALE) Head to Head Survey

Engie Brasl Ega (OTCMKTS:EGIEY) and Allete (NYSE:ALE) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Insider & Institutional Ownership

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

Earnings and Valuation

This table compares Engie Brasl Ega and Allete”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Engie Brasl Ega	$2.08 billion	N/A	$793.39 million	$0.46	12.13
Allete	$1.53 billion	2.57	$179.30 million	$2.85	23.76

Engie Brasl Ega has higher revenue and earnings than Allete. Engie Brasl Ega is trading at a lower price-to-earnings ratio than Allete, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Engie Brasl Ega and Allete, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Engie Brasl Ega	1	0	0	0	1.00
Allete	0	0	1	0	3.00

Volatility & Risk

Engie Brasl Ega has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500. Comparatively, Allete has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Profitability

This table compares Engie Brasl Ega and Allete’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Engie Brasl Ega	23.75%	23.74%	5.83%
Allete	11.04%	5.08%	2.47%

Dividends

Engie Brasl Ega pays an annual dividend of $0.22 per share and has a dividend yield of 3.9%. Allete pays an annual dividend of $2.92 per share and has a dividend yield of 4.3%. Engie Brasl Ega pays out 47.8% of its earnings in the form of a dividend. Allete pays out 102.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Allete has raised its dividend for 15 consecutive years. Allete is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Allete beats Engie Brasl Ega on 9 of the 15 factors compared between the two stocks.

About Engie Brasl Ega

Engie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. The company operates 76 plants, including 11 hydroelectric power plants; 1 thermal power plants; 50 wind farms; 3 biomass; 9 photovoltaic and solar power plant; and 2 small hydroelectric plants. As of December 31, 2022, it had an installed capacity of 8,453.3 megawatts. The company also transports natural gas through 4,500 km of gas pipelines. In addition, it manufactures, wholesales, retails, operates, and maintains solar panels. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company was founded in 2005 and is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltda.

About Allete

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. In addition, 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. Further, it owns and maintains electric transmission assets in Wisconsin, Michigan, Minnesota, and Illinois. Additionally, the company focuses on developing, acquiring, and operating clean and renewable energy projects; and owns and operates approximately 1,200 megawatts of wind energy generation facility, as well as involved in the coal mining operations in North Dakota; and real estate investment activities in Florida. It owns and operates 162 substations with a total capacity of 9,980 megavolt amperes. The company 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. ALLETE, Inc. was incorporated in 1906 and is headquartered in Duluth, Minnesota.