Alliant Energy (NASDAQ:LNT – Get Free Report) and Vistra (NYSE:VST – Get Free Report) are both large-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.
Profitability
This table compares Alliant Energy and Vistra’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alliant Energy | 18.57% | 11.51% | 3.45% |
| Vistra | 5.32% | 81.09% | 5.25% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Alliant Energy and Vistra, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alliant Energy | 0 | 3 | 9 | 0 | 2.75 |
| Vistra | 0 | 1 | 12 | 3 | 3.13 |
Dividends
Alliant Energy pays an annual dividend of $2.14 per share and has a dividend yield of 3.1%. Vistra pays an annual dividend of $0.91 per share and has a dividend yield of 0.6%. Alliant Energy pays out 67.9% of its earnings in the form of a dividend. Vistra pays out 41.9% 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 increased its dividend for 22 consecutive years and Vistra has increased its dividend for 6 consecutive years. Alliant Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Alliant Energy has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Vistra has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.
Institutional and Insider Ownership
79.9% of Alliant Energy shares are owned by institutional investors. Comparatively, 90.9% of Vistra shares are owned by institutional investors. 0.3% of Alliant Energy shares are owned by company insiders. Comparatively, 1.4% of Vistra shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Alliant Energy and Vistra”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alliant Energy | $4.36 billion | 4.05 | $810.00 million | $3.15 | 21.81 |
| Vistra | $17.74 billion | 2.79 | $944.00 million | $2.17 | 67.39 |
Vistra has higher revenue and earnings than Alliant Energy. Alliant Energy is trading at a lower price-to-earnings ratio than Vistra, indicating that it is currently the more affordable of the two stocks.
Summary
Vistra beats Alliant Energy on 13 of the 18 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 Vistra
Vistra Corp., together with its subsidiaries, operates as an integrated retail electricity and power generation company. The company operates through six segments: Retail, Texas, East, West, Sunset, and Asset Closure. It retails electricity and natural gas to residential, commercial, and industrial customers across states in the United States and the District of Columbia. In addition, the company is involved in the electricity generation, wholesale energy purchases and sales, commodity risk management, fuel production, and fuel logistics management activities. It serves approximately 4 million customers with a generation capacity of approximately 37,000 megawatts with a portfolio of natural gas, nuclear, coal, solar, and battery energy storage facilities. The company was formerly known as Vistra Energy Corp. and changed its name to Vistra Corp. in July 2020. Vistra Corp. was founded in 1882 and is based in Irving, Texas.
Receive News & Ratings for Alliant Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alliant Energy and related companies with MarketBeat.com's FREE daily email newsletter.
