ALE vs. SRE: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALE and SRE, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
SRE’s market capitalization of 48.99 billion USD is significantly greater than ALE’s 3.76 billion USD, highlighting its more substantial market valuation.
With betas of 0.78 for ALE and 0.66 for SRE, both stocks show similar sensitivity to overall market movements.
| Symbol | ALE | SRE |
|---|---|---|
| Company Name | ALLETE, Inc. | Sempra |
| Country | US | US |
| Sector | Utilities | Utilities |
| Industry | Diversified Utilities | Diversified Utilities |
| CEO | Bethany M. Owen | Jeffrey Walker Martin |
| Price | 64.86 USD | 75.12 USD |
| Market Cap | 3.76 billion USD | 48.99 billion USD |
| Beta | 0.78 | 0.66 |
| Exchange | NYSE | NYSE |
| IPO Date | May 3, 1973 | June 29, 1998 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALE and SRE by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ALE
6.50%
Diversified Utilities Industry
- Max
- 17.95%
- Q3
- 11.52%
- Median
- 9.21%
- Q1
- 6.89%
- Min
- 1.90%
ALE’s Return on Equity of 6.50% is in the lower quartile for the Diversified Utilities industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
SRE
9.72%
Diversified Utilities Industry
- Max
- 17.95%
- Q3
- 11.52%
- Median
- 9.21%
- Q1
- 6.89%
- Min
- 1.90%
SRE’s Return on Equity of 9.72% is on par with the norm for the Diversified Utilities industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
ALE
2.36%
Diversified Utilities Industry
- Max
- 5.93%
- Q3
- 5.01%
- Median
- 4.05%
- Q1
- 3.29%
- Min
- 2.36%
ALE’s Return on Invested Capital of 2.36% is in the lower quartile for the Diversified Utilities industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
SRE
3.07%
Diversified Utilities Industry
- Max
- 5.93%
- Q3
- 5.01%
- Median
- 4.05%
- Q1
- 3.29%
- Min
- 2.36%
SRE’s Return on Invested Capital of 3.07% is in the lower quartile for the Diversified Utilities industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
Net Profit Margin
ALE
12.10%
Diversified Utilities Industry
- Max
- 22.37%
- Q3
- 17.08%
- Median
- 12.67%
- Q1
- 9.69%
- Min
- 0.50%
ALE’s Net Profit Margin of 12.10% is aligned with the median group of its peers in the Diversified Utilities industry. This indicates its ability to convert revenue into profit is typical for the sector.
SRE
22.24%
Diversified Utilities Industry
- Max
- 22.37%
- Q3
- 17.08%
- Median
- 12.67%
- Q1
- 9.69%
- Min
- 0.50%
A Net Profit Margin of 22.24% places SRE in the upper quartile for the Diversified Utilities industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ALE
10.86%
Diversified Utilities Industry
- Max
- 27.96%
- Q3
- 22.82%
- Median
- 19.04%
- Q1
- 13.03%
- Min
- 7.89%
ALE’s Operating Profit Margin of 10.86% is in the lower quartile for the Diversified Utilities industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
SRE
22.65%
Diversified Utilities Industry
- Max
- 27.96%
- Q3
- 22.82%
- Median
- 19.04%
- Q1
- 13.03%
- Min
- 7.89%
SRE’s Operating Profit Margin of 22.65% is around the midpoint for the Diversified Utilities industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ALE | SRE |
|---|---|---|
| Return on Equity (TTM) | 6.50% | 9.72% |
| Return on Assets (TTM) | 2.69% | 3.00% |
| Return on Invested Capital (TTM) | 2.36% | 3.07% |
| Net Profit Margin (TTM) | 12.10% | 22.24% |
| Operating Profit Margin (TTM) | 10.86% | 22.65% |
| Gross Profit Margin (TTM) | 28.84% | 42.14% |
Financial Strength
Current Ratio
ALE
1.26
Diversified Utilities Industry
- Max
- 2.07
- Q3
- 1.38
- Median
- 1.19
- Q1
- 0.81
- Min
- 0.57
ALE’s Current Ratio of 1.26 aligns with the median group of the Diversified Utilities industry, indicating that its short-term liquidity is in line with its sector peers.
SRE
0.57
Diversified Utilities Industry
- Max
- 2.07
- Q3
- 1.38
- Median
- 1.19
- Q1
- 0.81
- Min
- 0.57
SRE’s Current Ratio of 0.57 falls into the lower quartile for the Diversified Utilities industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
ALE
0.67
Diversified Utilities Industry
- Max
- 1.54
- Q3
- 1.19
- Median
- 0.73
- Q1
- 0.63
- Min
- 0.23
ALE’s Debt-to-Equity Ratio of 0.67 is typical for the Diversified Utilities industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
SRE
1.19
Diversified Utilities Industry
- Max
- 1.54
- Q3
- 1.19
- Median
- 0.73
- Q1
- 0.63
- Min
- 0.23
SRE’s leverage is in the upper quartile of the Diversified Utilities industry, with a Debt-to-Equity Ratio of 1.19. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
ALE
2.00
Diversified Utilities Industry
- Max
- 6.39
- Q3
- 3.88
- Median
- 2.56
- Q1
- 1.73
- Min
- 1.25
ALE’s Interest Coverage Ratio of 2.00 is positioned comfortably within the norm for the Diversified Utilities industry, indicating a standard and healthy capacity to cover its interest payments.
SRE
2.57
Diversified Utilities Industry
- Max
- 6.39
- Q3
- 3.88
- Median
- 2.56
- Q1
- 1.73
- Min
- 1.25
SRE’s Interest Coverage Ratio of 2.57 is positioned comfortably within the norm for the Diversified Utilities industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ALE | SRE |
|---|---|---|
| Current Ratio (TTM) | 1.26 | 0.57 |
| Quick Ratio (TTM) | 0.81 | 0.51 |
| Debt-to-Equity Ratio (TTM) | 0.67 | 1.19 |
| Debt-to-Asset Ratio (TTM) | 0.28 | 0.38 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.93 | 6.02 |
| Interest Coverage Ratio (TTM) | 2.00 | 2.57 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALE and SRE. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ALE
4.42%
Diversified Utilities Industry
- Max
- 18.26%
- Q3
- 5.83%
- Median
- 4.74%
- Q1
- 2.93%
- Min
- 0.00%
ALE’s Dividend Yield of 4.42% is consistent with its peers in the Diversified Utilities industry, providing a dividend return that is standard for its sector.
SRE
3.37%
Diversified Utilities Industry
- Max
- 18.26%
- Q3
- 5.83%
- Median
- 4.74%
- Q1
- 2.93%
- Min
- 0.00%
SRE’s Dividend Yield of 3.37% is consistent with its peers in the Diversified Utilities industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
ALE
89.06%
Diversified Utilities Industry
- Max
- 89.06%
- Q3
- 77.28%
- Median
- 56.48%
- Q1
- 42.75%
- Min
- 0.00%
ALE’s Dividend Payout Ratio of 89.06% is in the upper quartile for the Diversified Utilities industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
SRE
52.58%
Diversified Utilities Industry
- Max
- 89.06%
- Q3
- 77.28%
- Median
- 56.48%
- Q1
- 42.75%
- Min
- 0.00%
SRE’s Dividend Payout Ratio of 52.58% is within the typical range for the Diversified Utilities industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ALE | SRE |
|---|---|---|
| Dividend Yield (TTM) | 4.42% | 3.37% |
| Dividend Payout Ratio (TTM) | 89.06% | 52.58% |
Valuation
Price-to-Earnings Ratio
ALE
20.33
Diversified Utilities Industry
- Max
- 25.08
- Q3
- 19.50
- Median
- 15.21
- Q1
- 11.42
- Min
- 2.74
A P/E Ratio of 20.33 places ALE in the upper quartile for the Diversified Utilities industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
SRE
16.50
Diversified Utilities Industry
- Max
- 25.08
- Q3
- 19.50
- Median
- 15.21
- Q1
- 11.42
- Min
- 2.74
SRE’s P/E Ratio of 16.50 is within the middle range for the Diversified Utilities industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
ALE
2.29
Diversified Utilities Industry
- Max
- 3.39
- Q3
- 2.59
- Median
- 2.31
- Q1
- 1.97
- Min
- 1.69
ALE’s Forward PEG Ratio of 2.29 is within the middle range of its peers in the Diversified Utilities industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
SRE
1.89
Diversified Utilities Industry
- Max
- 3.39
- Q3
- 2.59
- Median
- 2.31
- Q1
- 1.97
- Min
- 1.69
In the lower quartile for the Diversified Utilities industry, SRE’s Forward PEG Ratio of 1.89 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
Price-to-Sales Ratio
ALE
2.46
Diversified Utilities Industry
- Max
- 3.68
- Q3
- 2.25
- Median
- 1.75
- Q1
- 0.80
- Min
- 0.47
ALE’s P/S Ratio of 2.46 is in the upper echelon for the Diversified Utilities industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
SRE
3.67
Diversified Utilities Industry
- Max
- 3.68
- Q3
- 2.25
- Median
- 1.75
- Q1
- 0.80
- Min
- 0.47
SRE’s P/S Ratio of 3.67 is in the upper echelon for the Diversified Utilities industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
ALE
1.31
Diversified Utilities Industry
- Max
- 2.56
- Q3
- 1.75
- Median
- 1.29
- Q1
- 1.12
- Min
- 0.31
ALE’s P/B Ratio of 1.31 is within the conventional range for the Diversified Utilities industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
SRE
1.55
Diversified Utilities Industry
- Max
- 2.56
- Q3
- 1.75
- Median
- 1.29
- Q1
- 1.12
- Min
- 0.31
SRE’s P/B Ratio of 1.55 is within the conventional range for the Diversified Utilities industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ALE | SRE |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 20.33 | 16.50 |
| Forward PEG Ratio (TTM) | 2.29 | 1.89 |
| Price-to-Sales Ratio (P/S, TTM) | 2.46 | 3.67 |
| Price-to-Book Ratio (P/B, TTM) | 1.31 | 1.55 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 64.29 | -12.01 |
| EV-to-EBITDA (TTM) | 11.99 | 14.22 |
| EV-to-Sales (TTM) | 3.67 | 6.37 |