Analyzing Alliant Energy (LNT) & The Competition

Alliant Energy (NASDAQ:LNT) is one of 105 publicly-traded companies in the “Electric Utilities” industry, but how does it compare to its competitors? We will compare Alliant Energy to similar businesses based on the strength of its analyst recommendations, dividends, risk, institutional ownership, earnings, profitability and valuation.

Volatility & Risk

Alliant Energy has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Alliant Energy’s competitors have a beta of -2.25, indicating that their average share price is 325% less volatile than the S&P 500.

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	20.74%	12.43%	3.70%
Alliant Energy Competitors	14.13%	9.68%	3.20%

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Alliant Energy	$4.36 billion	$810.00 million	20.09
Alliant Energy Competitors	$14.11 billion	$1.54 billion	20.02

Alliant Energy’s competitors have higher revenue and 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 Recommendations

This is a breakdown of current ratings for Alliant Energy and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alliant Energy	0	6	7	0	2.54
Alliant Energy Competitors	1429	6547	5525	145	2.32

Alliant Energy currently has a consensus price target of $75.23, indicating a potential upside of 4.31%. As a group, “Electric Utilities” companies have a potential upside of 6.09%. Given Alliant Energy’s competitors higher possible upside, analysts clearly believe Alliant Energy has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

79.9% of Alliant Energy shares are held by institutional investors. Comparatively, 60.0% of shares of all “Electric Utilities” companies are held by institutional investors. 0.3% of Alliant Energy shares are held by company insiders. Comparatively, 6.2% of shares of all “Electric Utilities” companies are held 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.

Dividends

Alliant Energy pays an annual dividend of $2.14 per share and has a dividend yield of 3.0%. Alliant Energy pays out 59.6% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 64.5% of their earnings in the form of a dividend. Alliant Energy has raised its dividend for 22 consecutive years.

Summary

Alliant Energy beats its competitors on 9 of the 15 factors compared.

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.