Critical Analysis: Alliant Energy Corporation (LNT) & Empresa Nacional de Electricidad (EOCC)
Alliant Energy Corporation (NYSE: LNT) and Empresa Nacional de Electricidad (NYSE:EOCC) are both mid-cap utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.
Alliant Energy Corporation pays an annual dividend of $1.26 per share and has a dividend yield of 3.0%. Empresa Nacional de Electricidad pays an annual dividend of $1.14 per share and has a dividend yield of 4.5%. Alliant Energy Corporation pays out 74.1% of its earnings in the form of a dividend. Alliant Energy Corporation has increased its dividend for 11 consecutive years.
Risk & Volatility
Alliant Energy Corporation has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Empresa Nacional de Electricidad has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.
Earnings & Valuation
This table compares Alliant Energy Corporation and Empresa Nacional de Electricidad’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Alliant Energy Corporation||$3.34 billion||2.95||$1.07 billion||$1.70||25.06|
|Empresa Nacional de Electricidad||$2.41 billion||2.87||$849.70 million||N/A||N/A|
Alliant Energy Corporation has higher revenue and earnings than Empresa Nacional de Electricidad.
This is a summary of current ratings for Alliant Energy Corporation and Empresa Nacional de Electricidad, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alliant Energy Corporation||0||4||0||0||2.00|
|Empresa Nacional de Electricidad||0||1||0||0||2.00|
Alliant Energy Corporation currently has a consensus price target of $41.00, suggesting a potential downside of 3.76%. Empresa Nacional de Electricidad has a consensus price target of $24.20, suggesting a potential downside of 4.31%. Given Alliant Energy Corporation’s higher possible upside, equities research analysts clearly believe Alliant Energy Corporation is more favorable than Empresa Nacional de Electricidad.
This table compares Alliant Energy Corporation and Empresa Nacional de Electricidad’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alliant Energy Corporation||11.85%||11.43%||3.34%|
|Empresa Nacional de Electricidad||N/A||N/A||N/A|
Insider and Institutional Ownership
67.1% of Alliant Energy Corporation shares are owned by institutional investors. Comparatively, 2.7% of Empresa Nacional de Electricidad shares are owned by institutional investors. 0.3% of Alliant Energy Corporation shares are owned by 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.
Alliant Energy Corporation beats Empresa Nacional de Electricidad on 10 of the 13 factors compared between the two stocks.
About Alliant Energy Corporation
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.
About Empresa Nacional de Electricidad
Enel Generacion Chile SA, formerly Empresa Nacional De Electricidad SA, is a Chile-based company engaged in the business of electricity generation. The Company operates in Chile. The Company owns and operates a total of approximately 111-generation units in Chile both directly and through its subsidiaries, Pehuenche, Celta and GasAtacama. Of these generation units, approximately 38 are hydroelectric, with a total installed capacity of over 3,470 megawatts. There are approximately 22 thermal generation units that operate with gas, coal or oil with a total installed capacity of over 2,808 megawatts. There are over 51 wind powered generation units with an aggregate installed capacity of approximately 78 megawatts. The Company’s subsidiaries include Compania Electrica San Isidro S.A. (San Isidro), Compania Electrica Tarapaca S.A. (Celta), Empresa Electrica Pehuenche S.A. (Pehuenche) and GasAtacama S.A (GasAtacama). It is controlled by Enel Chile SA.
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