Pampa Energia (NYSE: PAM) and Alliant Energy Corporation (NYSE:LNT) are both mid-cap utilities companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for Pampa Energia and Alliant Energy Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pampa Energia 0 0 1 0 3.00
Alliant Energy Corporation 0 4 0 0 2.00

Pampa Energia currently has a consensus price target of $75.00, suggesting a potential upside of 20.85%. Alliant Energy Corporation has a consensus price target of $41.00, suggesting a potential downside of 4.36%. Given Pampa Energia’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Pampa Energia is more favorable than Alliant Energy Corporation.

Institutional & Insider Ownership

51.1% of Pampa Energia shares are owned by institutional investors. Comparatively, 67.3% of Alliant Energy Corporation shares are owned by institutional investors. 0.3% of Alliant Energy Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Alliant Energy Corporation pays an annual dividend of $1.26 per share and has a dividend yield of 2.9%. Pampa Energia does not pay a dividend. Alliant Energy Corporation pays out 74.1% of its earnings in the form of a dividend. Alliant Energy Corporation has raised its dividend for 11 consecutive years.

Risk & Volatility

Pampa Energia has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Alliant Energy Corporation has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Profitability

This table compares Pampa Energia and Alliant Energy Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pampa Energia 3.37% 11.62% 2.17%
Alliant Energy Corporation 11.85% 11.43% 3.34%

Valuation and Earnings

This table compares Pampa Energia and Alliant Energy Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pampa Energia $3.03 billion 1.50 $705.59 million $1.44 43.10
Alliant Energy Corporation $3.34 billion 2.97 $1.07 billion $1.70 25.22

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

Summary

Alliant Energy Corporation beats Pampa Energia on 10 of the 17 factors compared between the two stocks.

Pampa Energia Company Profile

Pampa Energia S.A. is an integrated electricity company. The Company, through its subsidiaries, is engaged in the generation, transmission and distribution of electricity in Argentina. Its segments include generation, transmission, distribution, oil and gas, and holding and others. Its generation segment includes a direct and indirect equity interest in Central Piedra Buena S.A., Central Termica Guemes S.A., Central Termica Loma de la Lata S.A. and Pampa Comercializadora S.A, among others, and investments in companies in the electricity generation sector. Its transmission segment includes an indirect equity interest through Compania Inversora en Transmision Electrica Citelec S.A. Its distribution segment includes an indirect equity interest in Electricidad Argentina S.A. and Empresa Distribuidora y Comercializadora Norte S.A. Its Oil and gas segment includes a direct interest in Petrolera Pampa S.A. Its holding and others segment includes financial investment operations, among others.

Alliant Energy Corporation Company Profile

Alliant Energy Corporation operates as a regulated investor-owned public utility holding company. The Company’s segments include Utility and Non-regulated, Parent and Other. The Utility segment includes the operations of Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL), which serve retail customers in Iowa and Wisconsin. The Utility segment includes utility electric operations, utility gas operations and utility other, which includes steam operations and the unallocated portions of the utility business. Its Non-regulated, Parent and Other segment includes the operations of Alliant Energy Resources, LLC and its subsidiaries; Alliant Energy Corporate Services, Inc. (Corporate Services); the Alliant Energy parent company, and any Alliant Energy parent company consolidating adjustments. IPL and WPL own a portfolio of electric generating units located in Iowa, Wisconsin and Minnesota with a fuel mix, including coal, natural gas and renewable resources.

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