Analyzing IDACORP (IDA) and Alliant Energy (LNT)

IDACORP (NYSE: IDA) and Alliant Energy (NYSE:LNT) are both mid-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Valuation and Earnings

This table compares IDACORP and Alliant Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IDACORP $1.26 billion 3.35 $198.28 million $4.11 20.40
Alliant Energy $3.32 billion 2.74 $381.70 million $1.86 21.19

Alliant Energy has higher revenue and earnings than IDACORP. IDACORP is trading at a lower price-to-earnings ratio than Alliant Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares IDACORP and Alliant Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IDACORP 15.46% 9.44% 3.29%
Alliant Energy 13.13% 11.02% 3.22%

Volatility & Risk

IDACORP has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Alliant Energy has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for IDACORP and Alliant Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IDACORP 1 1 0 0 1.50
Alliant Energy 0 6 0 0 2.00

IDACORP presently has a consensus price target of $85.00, suggesting a potential upside of 1.36%. Alliant Energy has a consensus price target of $42.20, suggesting a potential upside of 7.08%. Given Alliant Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Alliant Energy is more favorable than IDACORP.

Dividends

IDACORP pays an annual dividend of $2.36 per share and has a dividend yield of 2.8%. Alliant Energy pays an annual dividend of $1.26 per share and has a dividend yield of 3.2%. IDACORP pays out 57.4% of its earnings in the form of a dividend. Alliant Energy pays out 67.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. IDACORP has increased its dividend for 12 consecutive years and Alliant Energy has increased its dividend for 6 consecutive years.

Insider & Institutional Ownership

75.5% of IDACORP shares are held by institutional investors. Comparatively, 68.5% of Alliant Energy shares are held by institutional investors. 0.7% of IDACORP shares are held by company insiders. Comparatively, 0.3% of Alliant Energy shares are held 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.

Summary

IDACORP beats Alliant Energy on 9 of the 16 factors compared between the two stocks.

IDACORP Company Profile

IDACORP, Inc. is a holding company. The Company’s principal operating subsidiary is Idaho Power Company (Idaho Power). The Company’s segment is utility operations. The utility operations segment’s primary source of revenue is the regulated operations of Idaho Power. Idaho Power is an electric utility engaged in the generation, transmission, distribution, sale and purchase of electric energy and capacity. Idaho Power is the parent of Idaho Energy Resources Co. (IERCo), a joint venturer in Bridger Coal Company, which mines and supplies coal to the Jim Bridger generating plant owned in part by Idaho Power. Its subsidiaries also include IDACORP Financial Services, Inc., an investor in affordable housing and other real estate investments, and Ida-West Energy Company, an operator of small hydroelectric generation projects. As of December 31, 2016, Idaho Power provided electric utility service to approximately 535,000 general business customers in southern Idaho and eastern Oregon.

Alliant Energy Company Profile

Alliant Energy Corporation operates as a regulated investor-owned public utility holding company. The Company’s segments include Utility and Non-regulated, Parent and Other. The Utility segment includes the operations of Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL), which serve retail customers in Iowa and Wisconsin. The Utility segment includes utility electric operations, utility gas operations and utility other, which includes steam operations and the unallocated portions of the utility business. Its Non-regulated, Parent and Other segment includes the operations of Alliant Energy Resources, LLC and its subsidiaries; Alliant Energy Corporate Services, Inc. (Corporate Services); the Alliant Energy parent company, and any Alliant Energy parent company consolidating adjustments. IPL and WPL own a portfolio of electric generating units located in Iowa, Wisconsin and Minnesota with a fuel mix, including coal, natural gas and renewable resources.

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