NiSource (NYSE:NI – Get Free Report) and IDACORP (NYSE:IDA – Get Free Report) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Dividends
NiSource pays an annual dividend of $1.12 per share and has a dividend yield of 2.6%. IDACORP pays an annual dividend of $3.52 per share and has a dividend yield of 2.6%. NiSource pays out 59.3% of its earnings in the form of a dividend. IDACORP pays out 60.5% 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. NiSource has raised its dividend for 14 consecutive years and IDACORP has raised its dividend for 13 consecutive years.
Analyst Ratings
This is a breakdown of recent recommendations for NiSource and IDACORP, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NiSource | 0 | 2 | 9 | 0 | 2.82 |
| IDACORP | 1 | 1 | 7 | 1 | 2.80 |
Institutional & Insider Ownership
91.6% of NiSource shares are held by institutional investors. Comparatively, 89.1% of IDACORP shares are held by institutional investors. 0.2% of NiSource shares are held by company insiders. Comparatively, 0.5% of IDACORP shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
NiSource has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, IDACORP has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.
Profitability
This table compares NiSource and IDACORP’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NiSource | 14.15% | 8.09% | 2.66% |
| IDACORP | 17.59% | 9.35% | 3.27% |
Valuation & Earnings
This table compares NiSource and IDACORP”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NiSource | $5.46 billion | 3.80 | $760.40 million | $1.89 | 23.00 |
| IDACORP | $1.83 billion | 3.95 | $289.17 million | $5.82 | 22.92 |
NiSource has higher revenue and earnings than IDACORP. IDACORP is trading at a lower price-to-earnings ratio than NiSource, indicating that it is currently the more affordable of the two stocks.
Summary
NiSource beats IDACORP on 10 of the 18 factors compared between the two stocks.
About NiSource
NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates in two segments, Gas Distribution Operations and Electric Operations. The company distributes natural gas to approximately 3.3 million customers through approximately 55,000 miles of distribution main pipeline and the associated individual customer service lines; and 1,000 miles of transmission main pipeline in northern Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It also generates, transmits, and distributes electricity to approximately 0.5 million customers in various counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates coal-fired electric generating stations in Wheatfield and Michigan City; combined cycle gas turbine in West Terre Haute; natural gas generating units in Wheatfield; hydro generating plants in Carroll County and White County; wind generating units in White County, Indiana; and solar generating units in Jasper County and White County. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana.
About IDACORP
IDACORP, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, purchase, and sale of electric energy in the United States. The company operates 17 hydropower generating plants located in southern Idaho and eastern Oregon; three natural gas-fired plants in southern Idaho; and interests in two coal-fired steam electric generating plants located in Wyoming and Nevada. As of December 31, 2023, it had approximately 4,762 pole-miles of high-voltage transmission lines; 23 step-up transmission substations located at power plants; 21 transmission substations; 11 switching stations; 30 mixed-use transmission and distribution substations; 186 energized distribution substations; and 29,714 pole-miles of distribution lines, and 131 MW of battery storage, as well as provides electric utility services to approximately 633,000 retail customers in southern Idaho and eastern Oregon. The company serves commercial and industrial customers, which involved in food processing, electronics and general manufacturing, agriculture, health care, government, and education. It also invests in housing and other real estate tax credit investments. IDACORP, Inc. was founded in 1915 and is headquartered in Boise, Idaho.
Receive News & Ratings for NiSource Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NiSource and related companies with MarketBeat.com's FREE daily email newsletter.
