SolarBank (NASDAQ:SUUN – Get Free Report) and ALLETE (NYSE:ALE – Get Free Report) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.
Insider & Institutional Ownership
76.6% of ALLETE shares are owned by institutional investors. 0.3% of ALLETE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares SolarBank and ALLETE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SolarBank | -10.64% | -15.19% | -6.41% |
| ALLETE | 11.72% | 5.97% | 3.03% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SolarBank | 0 | 0 | 2 | 0 | 3.00 |
| ALLETE | 0 | 1 | 0 | 1 | 3.00 |
SolarBank currently has a consensus price target of $6.00, suggesting a potential upside of 201.51%. ALLETE has a consensus price target of $67.00, suggesting a potential upside of 1.96%. Given SolarBank’s higher probable upside, analysts plainly believe SolarBank is more favorable than ALLETE.
Earnings and Valuation
This table compares SolarBank and ALLETE”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SolarBank | $52.15 million | 1.23 | -$2.56 million | ($0.22) | -9.05 |
| ALLETE | $1.53 billion | 2.50 | $179.30 million | $3.19 | 20.60 |
ALLETE has higher revenue and earnings than SolarBank. SolarBank is trading at a lower price-to-earnings ratio than ALLETE, indicating that it is currently the more affordable of the two stocks.
Summary
ALLETE beats SolarBank on 11 of the 13 factors compared between the two stocks.
About SolarBank
SolarBank Corporation operates as an independent renewable and clean energy project developer and asset operator in Canada and the United States. The company engages in the site origination, development, financing, engineering, procurement, construction, operation, maintenance, and asset management of solar photovoltaic power generation projects. It offers solar energy solutions in the areas of behind-the-meter solar power plants, electricity grid connected community solar gardens, and utility scale solar farms. The company was formerly known as Abundant Solar Energy Inc. and changed its name to SolarBank Corporation in October 2022. SolarBank Corporation was incorporated in 2013 and is headquartered in Toronto, Canada.
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.
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