Evergy (NYSE:EVRG) and Alliant Energy (NYSE:LNT) are both large-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Evergy pays an annual dividend of $1.90 per share and has a dividend yield of 2.9%. Alliant Energy pays an annual dividend of $1.42 per share and has a dividend yield of 2.7%. Evergy pays out 71.2% of its earnings in the form of a dividend. Alliant Energy pays out 73.6% 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. Evergy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
88.0% of Evergy shares are held by institutional investors. Comparatively, 71.1% of Alliant Energy shares are held by institutional investors. 0.4% of Evergy shares are held by insiders. Comparatively, 0.3% of Alliant Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Evergy and Alliant Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Evergy and Alliant Energy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Evergy presently has a consensus target price of $66.00, suggesting a potential upside of 1.52%. Alliant Energy has a consensus target price of $50.08, suggesting a potential downside of 5.23%. Given Evergy’s higher probable upside, equities research analysts plainly believe Evergy is more favorable than Alliant Energy.
Earnings and Valuation
This table compares Evergy and Alliant Energy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Evergy||$4.28 billion||3.46||$535.80 million||$2.67||24.35|
|Alliant Energy||$3.38 billion||3.76||$467.50 million||$1.93||27.38|
Evergy has higher revenue and earnings than Alliant Energy. Evergy is trading at a lower price-to-earnings ratio than Alliant Energy, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Evergy has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500. Comparatively, Alliant Energy has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.
Westar Energy, Inc. engages in the generation, transmission and distribution of electricity in Kansas. It provides electricity to residential, commercial, and industrial customers in the cities of Topeka, Lawrence, Manhattan, Salina, and Hutchinson. The company was founded in 1924 and is headquartered in Topeka, KS.
About Alliant Energy
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: Electric, Gas, and 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 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, 2017, IPL supplied electricity to 490,000 retail customers and natural gas to 220,000 retail customers; and WPL supplied electricity to 470,000 retail customers and natural gas to 190,000 retail customers. It offers electric utility services to retail customers in the farming, agriculture, industrial manufacturing, chemical, and paper 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; and other transfer and storage services. Further, it owns a non-regulated 347 megawatt (MW) natural gas-fired electric generating unit near Sheboygan Falls, Wisconsin; and a non-regulated 99 MW Franklin County wind farm located in Franklin County, Iowa. Alliant Energy Corporation was founded in 1917 and is headquartered in Madison, Wisconsin.
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