Contrasting Alliant Energy (NASDAQ:LNT) & IDACORP (NYSE:IDA)

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

Risk and Volatility

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

Analyst Ratings

This is a summary of current recommendations and price targets for Alliant Energy and IDACORP, as reported by MarketBeat.com.

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

Alliant Energy presently has a consensus price target of $75.23, suggesting a potential upside of 3.45%. IDACORP has a consensus price target of $152.29, suggesting a potential upside of 3.96%. Given IDACORP’s stronger consensus rating and higher probable upside, analysts clearly believe IDACORP is more favorable than Alliant Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alliant Energy	20.74%	12.43%	3.70%
IDACORP	19.84%	9.92%	3.48%

Dividends

Alliant Energy pays an annual dividend of $2.14 per share and has a dividend yield of 2.9%. IDACORP pays an annual dividend of $3.52 per share and has a dividend yield of 2.4%. Alliant Energy pays out 59.6% of its earnings in the form of a dividend. IDACORP pays out 54.1% 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 raised its dividend for 22 consecutive years and IDACORP has raised its dividend for 13 consecutive years. Alliant Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

79.9% of Alliant Energy shares are owned by institutional investors. Comparatively, 89.1% of IDACORP shares are owned by institutional investors. 0.3% of Alliant Energy shares are owned by insiders. Comparatively, 0.3% of IDACORP shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alliant Energy	$4.36 billion	4.32	$810.00 million	$3.59	20.26
IDACORP	$1.81 billion	4.76	$323.47 million	$6.51	22.50

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.

Summary

Alliant Energy beats IDACORP on 9 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 IDACORP

IDACORP, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, purchase, and sale of electric energy in the United States. The company operates 17 hydropower generating plants located in southern Idaho and eastern Oregon; three natural gas-fired plants in southern Idaho; and interests in two coal-fired steam electric generating plants located in Wyoming and Nevada. As of December 31, 2023, it had approximately 4,762 pole-miles of high-voltage transmission lines; 23 step-up transmission substations located at power plants; 21 transmission substations; 11 switching stations; 30 mixed-use transmission and distribution substations; 186 energized distribution substations; and 29,714 pole-miles of distribution lines, and 131 MW of battery storage, as well as provides electric utility services to approximately 633,000 retail customers in southern Idaho and eastern Oregon. The company serves commercial and industrial customers, which involved in food processing, electronics and general manufacturing, agriculture, health care, government, and education. It also invests in housing and other real estate tax credit investments. IDACORP, Inc. was founded in 1915 and is headquartered in Boise, Idaho.