China Resources Power (OTCMKTS:CRPJY) versus Allete (NYSE:ALE) Critical Contrast

China Resources Power (OTCMKTS:CRPJY) and Allete (NYSE:ALE) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Dividends

China Resources Power pays an annual dividend of $1.22 per share and has a dividend yield of 3.6%. Allete pays an annual dividend of $2.92 per share and has a dividend yield of 4.3%. Allete pays out 92.1% 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 increased its dividend for 15 consecutive years. Allete is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares China Resources Power and Allete”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Resources Power	$13.49 billion	0.87	$1.84 billion	N/A	N/A
Allete	$1.53 billion	2.56	$179.30 million	$3.17	21.26

China Resources Power has higher revenue and earnings than Allete.

Risk and Volatility

China Resources Power has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Allete has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Profitability

This table compares China Resources Power and Allete’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Resources Power	N/A	N/A	N/A
Allete	11.98%	5.71%	2.83%

Analyst Recommendations

This is a summary of recent recommendations for China Resources Power and Allete, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Resources Power	0	0	1	0	3.00
Allete	0	1	0	0	2.00

Summary

Allete beats China Resources Power on 9 of the 14 factors compared between the two stocks.

About China Resources Power

China Resources Power Holdings Company Limited, an investment holding company, invests in, develops, operates, and manages power plants and coal mines in the People's Republic of China. The company operates in two segments, Thermal Power and Renewable Energy. It operates and manages coal- and gas-fired power plants, wind farms, photovoltaic power plants, hydro-electric power plants, and other clean and renewable energy projects. As of December 31, 2022, the company had 42 coal-fired power plants, 159 wind farms, 38 photovoltaic power plants, 2 hydroelectric plants, and 5 gas-fired plants with total attributable operational generation capacity of 52,581 MW. It also engages in coal mining and marketing activities; and undertakes combined generation of heat and power, coal-electricity integration, and other projects. In addition, the company is involved in the distribution of energy, power sale, intelligent energy, coal mining, and other areas; and distribution network construction and operation, distributed energy resource, and other businesses. The company was incorporated in 2001 and is based in Wan Chai, Hong Kong. China Resources Power Holdings Company Limited operates as a subsidiary of CRH (Power) Limited.

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.