Alliant Energy (LNT) & Its Peers Critical Contrast

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Alliant Energy (NASDAQ: LNT) is one of 27 publicly-traded companies in the “Electric & other services combined” industry, but how does it contrast to its competitors? We will compare Alliant Energy to related businesses based on the strength of its valuation, institutional ownership, risk, profitability, dividends, analyst recommendations and earnings.

Insider & Institutional Ownership

74.4% of Alliant Energy shares are owned by institutional investors. Comparatively, 70.2% of shares of all “Electric & other services combined” companies are owned by institutional investors. 0.3% of Alliant Energy shares are owned by company insiders. Comparatively, 4.4% of shares of all “Electric & other services combined” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Alliant Energy and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alliant Energy 18.37% 12.30% 3.88%
Alliant Energy Competitors 0.68% 10.07% 2.38%

Dividends

Alliant Energy pays an annual dividend of $1.52 per share and has a dividend yield of 2.9%. Alliant Energy pays out 65.8% of its earnings in the form of a dividend. As a group, “Electric & other services combined” companies pay a dividend yield of 3.5% and pay out 63.1% of their earnings in the form of a dividend. Alliant Energy has increased its dividend for 1 consecutive years. Alliant Energy lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Alliant Energy and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Alliant Energy $3.65 billion $567.40 million 22.98
Alliant Energy Competitors $9.27 billion $442.61 million 16.12

Alliant Energy’s competitors have higher revenue, but lower earnings than Alliant Energy. Alliant Energy is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings for Alliant Energy and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alliant Energy 0 1 1 0 2.50
Alliant Energy Competitors 458 1929 1384 14 2.25

Alliant Energy currently has a consensus target price of $56.00, indicating a potential upside of 5.48%. As a group, “Electric & other services combined” companies have a potential upside of 10.39%. Given Alliant Energy’s competitors higher possible upside, analysts plainly believe Alliant Energy has less favorable growth aspects than its competitors.

Volatility & Risk

Alliant Energy has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Alliant Energy’s competitors have a beta of 0.40, meaning that their average share price is 60% less volatile than the S&P 500.

Summary

Alliant Energy beats its competitors on 8 of the 15 factors compared.

Alliant Energy Company Profile

Alliant Energy Corporation operates as a utility holding company that provides regulated electricity and natural gas services in the Midwest region of the United States. It operates through 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. As of December 31, 2019, IPL supplied electricity to 490,000 retail customers and natural gas to 225,000 retail customers; and WPL supplied electricity to 480,000 retail customers and natural gas to 195,000 retail customers. It offers electric utility services to retail customers in the farming, agriculture, industrial manufacturing, chemical, and packaging industries. In addition, the company holds investments in various businesses, which provide freight services through a short-line railway between Cedar Rapids and Iowa City, Iowa; a barge terminal and hauling services on the Mississippi River; customized supply chain solutions; freight and logistics brokering services; and other transfer and storage services. Further, it owns a 347 megawatt (MW) natural gas-fired electric generating unit near Sheboygan Falls, Wisconsin; and a 225 MW wind farm located in Oklahoma. Alliant Energy Corporation was founded in 1917 and is headquartered in Madison, Wisconsin.

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