Alliant Energy (NASDAQ:LNT – Get Free Report) and Dominion Energy (NYSE:D – Get Free Report) are both large-cap utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Dividends
Alliant Energy pays an annual dividend of $2.03 per share and has a dividend yield of 2.9%. Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 4.4%. Alliant Energy pays out 62.7% of its earnings in the form of a dividend. Dominion Energy 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. Alliant Energy has increased its dividend for 22 consecutive years.
Institutional & Insider Ownership
79.9% of Alliant Energy shares are owned by institutional investors. Comparatively, 73.0% of Dominion Energy shares are owned by institutional investors. 0.3% of Alliant Energy shares are owned by company insiders. Comparatively, 0.1% of Dominion Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alliant Energy | 1 | 3 | 6 | 0 | 2.50 |
| Dominion Energy | 1 | 8 | 1 | 0 | 2.00 |
Alliant Energy presently has a consensus target price of $68.56, suggesting a potential downside of 0.44%. Dominion Energy has a consensus target price of $62.43, suggesting a potential upside of 2.69%. Given Dominion Energy’s higher possible upside, analysts plainly believe Dominion Energy is more favorable than Alliant Energy.
Volatility and Risk
Alliant Energy has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Dominion Energy has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.
Profitability
This table compares Alliant Energy and Dominion Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alliant Energy | 20.07% | 12.25% | 3.75% |
| Dominion Energy | 16.45% | 9.68% | 2.69% |
Valuation and Earnings
This table compares Alliant Energy and Dominion Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alliant Energy | $3.98 billion | 4.44 | $690.00 million | $3.24 | 21.25 |
| Dominion Energy | $14.46 billion | 3.59 | $2.12 billion | $2.90 | 20.96 |
Dominion Energy has higher revenue and earnings than Alliant Energy. Dominion Energy is trading at a lower price-to-earnings ratio than Alliant Energy, indicating that it is currently the more affordable of the two stocks.
Summary
Alliant Energy beats Dominion Energy on 12 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 Dominion Energy
Dominion Energy, Inc. produces and distributes energy in the United States. It operates through three operating segments: Dominion Energy Virginia, Dominion Energy South Carolina, and Contracted Energy. The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to approximately 2.8 million residential, commercial, industrial, and governmental customers in Virginia and North Carolina. The Dominion Energy South Carolina segment generates, transmits, and distributes electricity to approximately 0.8 million customers in the central, southern, and southwestern portions of South Carolina; and distributes natural gas to approximately 0.4 million residential, commercial, and industrial customers in South Carolina. The Contracted Energy segment is involved in the nonregulated long-term contracted renewable electric generation and renewable natural gas facility. As of December 31, 2023, the company's portfolio of assets included approximately 29.5 gigawatt of electric generating capacity; 10,600 miles of electric transmission lines; 79,300 miles of electric distribution lines; and 94,800 miles of gas distribution mains and related service facilities. The company was formerly known as Dominion Resources, Inc. Dominion Energy, Inc. was incorporated in 1983 and is headquartered in Richmond, Virginia.
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