Alliant Energy (NASDAQ:LNT – Get Free Report) and Otter Tail (NASDAQ:OTTR – Get Free Report) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.
Institutional and Insider Ownership
79.9% of Alliant Energy shares are owned by institutional investors. Comparatively, 61.3% of Otter Tail shares are owned by institutional investors. 0.3% of Alliant Energy shares are owned by company insiders. Comparatively, 2.0% of Otter Tail 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.
Analyst Recommendations
This is a breakdown of current ratings for Alliant Energy and Otter Tail, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alliant Energy | 0 | 4 | 9 | 0 | 2.69 |
| Otter Tail | 1 | 3 | 1 | 0 | 2.00 |
Earnings & Valuation
This table compares Alliant Energy and Otter Tail”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alliant Energy | $4.36 billion | 4.62 | $810.00 million | $3.19 | 24.46 |
| Otter Tail | $1.30 billion | 2.94 | $275.89 million | $6.67 | 13.70 |
Alliant Energy has higher revenue and earnings than Otter Tail. Otter Tail is trading at a lower price-to-earnings ratio than Alliant Energy, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Alliant Energy has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Otter Tail has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.
Profitability
This table compares Alliant Energy and Otter Tail’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alliant Energy | 18.58% | 11.37% | 3.38% |
| Otter Tail | 21.34% | 15.21% | 7.13% |
Dividends
Alliant Energy pays an annual dividend of $2.14 per share and has a dividend yield of 2.7%. Otter Tail pays an annual dividend of $2.31 per share and has a dividend yield of 2.5%. Alliant Energy pays out 67.1% of its earnings in the form of a dividend. Otter Tail pays out 34.6% 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. Alliant Energy has increased its dividend for 22 consecutive years and Otter Tail has increased its dividend for 12 consecutive years. Alliant Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Alliant Energy beats Otter Tail on 11 of the 17 factors compared between the two stocks.
About Alliant Energy
Alliant Energy Corporation operates as a utility holding company that provides regulated electricity and natural gas services in the United States. It operates in three segments: Utility Electric Operations, Utility Gas Operations, and Utility Other. The company, through its subsidiary, Interstate Power and Light Company (IPL), primarily generates and distributes electricity, and distributes and transports natural gas to retail customers in Iowa; sells electricity to wholesale customers in Minnesota, Illinois, and Iowa; and generates and distributes steam in Cedar Rapids, Iowa. Alliant Energy Corporation, through its other subsidiary, Wisconsin Power and Light Company (WPL), generates and distributes electricity, and distributes and transports natural gas to retail customers in Wisconsin; and sells electricity to wholesale customers in Wisconsin. It serves retail customers in the farming, agriculture, industrial manufacturing, chemical, packaging, and food industries, as well as wholesale customers comprising municipalities and rural electric cooperatives. In addition, the company owns and operates a short-line rail freight service in Iowa; a Mississippi River barge, rail, and truck freight terminal in Illinois; freight brokerage services; wind turbine blade recycling services; and a rail-served warehouse in Iowa. Further, it holds interests in a natural gas-fired electric generating unit near Sheboygan Falls, Wisconsin; and a wind farm located in Oklahoma. The company was formerly known as Interstate Energy Corp. and changed its name to Alliant Energy Corporation in May 1999. Alliant Energy Corporation was incorporated in 1981 and is headquartered in Madison, Wisconsin.
About Otter Tail
Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. It operates through three segments: Electric, Manufacturing, and Plastics. The Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator markets. This segment generates electricity through coal, fuel oil, solar, wind, and natural gas. It serves approximately residential, commercial, and industrial customers. The Manufacturing segment engages in the contract machining, metal parts stamping, fabrication and painting, production of plastic thermoformed horticultural containers, life science and industrial packaging, and material handling components and extruded raw material stock for the recreational vehicle, lawn and garden, agricultural, construction, and industrial and energy equipment end markets. The Plastics segment manufactures polyvinyl chloride pipes for municipal water, rural water, wastewater, storm drainage and water reclamation system, and other uses for customers in the horticulture, medical and life sciences, industrial, recreation, and electronics industries. This segment markets its products to wholesalers and distributors through independent sales representatives, company salespersons, and customer service representatives. The company was formerly known as Otter Tail Power Company and changed its name to Otter Tail Corporation in 2001. Otter Tail Corporation was founded in 1907 and is headquartered in Fergus Falls, Minnesota.
Receive News & Ratings for Alliant Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alliant Energy and related companies with MarketBeat.com's FREE daily email newsletter.
