Reviewing Alliant Energy (NASDAQ:LNT) and IDACORP (NYSE:IDA)

IDACORP (NYSE:IDA) and Alliant Energy (NASDAQ:LNT) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Risk and Volatility

IDACORP has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Alliant Energy has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.

Dividends

IDACORP pays an annual dividend of $3.60 per share and has a dividend yield of 2.5%. Alliant Energy pays an annual dividend of $2.14 per share and has a dividend yield of 2.9%. IDACORP pays out 55.3% of its earnings in the form of a dividend. Alliant Energy pays out 59.6% 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. IDACORP has increased its dividend for 13 consecutive years and Alliant Energy has increased its dividend for 22 consecutive years. Alliant Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares IDACORP and Alliant Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IDACORP	$1.81 billion	4.76	$323.47 million	$6.51	22.50
Alliant Energy	$4.36 billion	4.37	$810.00 million	$3.59	20.45

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

Analyst Ratings

This is a summary of recent ratings and target prices for IDACORP and Alliant Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IDACORP	0	2	6	0	2.75
Alliant Energy	0	6	7	0	2.54

IDACORP currently has a consensus price target of $152.29, indicating a potential upside of 3.97%. Alliant Energy has a consensus price target of $75.23, indicating a potential upside of 2.45%. Given IDACORP’s stronger consensus rating and higher possible upside, equities analysts plainly believe IDACORP is more favorable than Alliant Energy.

Insider and Institutional Ownership

89.1% of IDACORP shares are held by institutional investors. Comparatively, 79.9% of Alliant Energy shares are held by institutional investors. 0.3% 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

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	19.84%	9.92%	3.48%
Alliant Energy	20.74%	12.43%	3.70%

Summary

Alliant Energy beats IDACORP on 9 of the 17 factors compared between the two stocks.

About IDACORP

IDACORP, Inc. is an energy holding company whose principal subsidiary, Idaho Power Company, provides regulated electric service. Idaho Power generates, transmits and distributes electricity to homes, businesses and other customers. Idaho Power serves a territory spanning southern Idaho and parts of eastern Oregon. Its electricity comes from a mix of generating resources, including hydroelectric facilities, thermal plants and renewable energy sources. Idaho Power traces its roots to 1916, while IDACORP became the utility’s publicly traded parent company in 1998.

About Alliant Energy

Alliant Energy Corporation is a regulated utility holding company that provides electric and natural gas services through its subsidiaries, Interstate Power and Light Company and Wisconsin Power and Light Company. Its service territory includes communities across Iowa and Wisconsin. The company’s operations include generating, transmitting and distributing electricity, as well as distributing natural gas. Its energy portfolio includes a mix of resources, including wind and solar power, natural gas and other generation sources.