Edison International (NYSE:EIX) and Alliant Energy (NASDAQ:LNT) Head to Head Analysis

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

Earnings and Valuation

This table compares Alliant Energy and Edison International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alliant Energy	$4.50 billion	4.24	$810.00 million	$3.59	20.51
Edison International	$19.32 billion	1.19	$4.70 billion	$9.41	6.37

Edison International has higher revenue and earnings than Alliant Energy. Edison International is trading at a lower price-to-earnings ratio than Alliant Energy, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

79.9% of Alliant Energy shares are owned by institutional investors. Comparatively, 89.0% of Edison International shares are owned by institutional investors. 0.3% of Alliant Energy shares are owned by company insiders. Comparatively, 1.2% of Edison International 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Alliant Energy and Edison International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alliant Energy	0	6	7	0	2.54
Edison International	4	10	1	0	1.80

Alliant Energy currently has a consensus price target of $75.23, indicating a potential upside of 2.18%. Edison International has a consensus price target of $60.58, indicating a potential upside of 1.10%. Given Alliant Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Alliant Energy is more favorable than Edison International.

Dividends

Alliant Energy pays an annual dividend of $2.14 per share and has a dividend yield of 2.9%. Edison International pays an annual dividend of $3.51 per share and has a dividend yield of 5.9%. Alliant Energy pays out 59.6% of its earnings in the form of a dividend. Edison International pays out 37.3% 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 Edison International has increased its dividend for 23 consecutive years. Edison International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Alliant Energy and Edison International’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%
Edison International	20.50%	14.17%	2.82%

Risk & Volatility

Alliant Energy has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Edison International has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Summary

Edison International beats Alliant Energy on 10 of the 17 factors compared between the two stocks.

About Alliant Energy

Alliant Energy Corporation is a regulated utility holding company that provides electric and natural gas services through its subsidiaries, Interstate Power and Light Company and Wisconsin Power and Light Company. Its service territory includes communities across Iowa and Wisconsin. The company’s operations include generating, transmitting and distributing electricity, as well as distributing natural gas. Its energy portfolio includes a mix of resources, including wind and solar power, natural gas and other generation sources.

About Edison International

Edison International is a holding company focused on electric power generation and delivery. Its principal subsidiary, Southern California Edison (SCE), is a regulated electric utility that serves homes and businesses across much of central and Southern California. SCE operates and maintains the electric grid, including transmission and distribution infrastructure, and works to support the region’s shift to cleaner energy. Edison International also provides energy advisory and management services through its Edison Energy business.