FirstEnergy Corporation (FE) vs Alliant Energy Corporation (LNT)

FirstEnergy Corporation and Alliant Energy Corporation are both Utilities Regulated Electric companies. FirstEnergy Corporation is the larger, with a market value of $27.3B against $19.1B — 1.4× the size. Alliant Energy Corporation trades at the lower P/E: 20.3× against 22.6×. FirstEnergy Corporation grew revenue faster over the last twelve months: 12.2% against 5.36%. Alliant Energy Corporation has the higher net margin (20.7% vs 7.40%) and the lower return on invested capital (3.13% vs 3.40%). Both pay a dividend; FirstEnergy Corporation yields more (4.86% vs 2.91%). Across the 22 metrics below, Alliant Energy Corporation leads on 13 and FirstEnergy Corporation on 9.

Valuation

Metric FE LNT Utilities Regulated Electric median
P/E 22.62 20.34 19.45
P/S 1.68 4.23 2.78
P/B 1.88 2.44 1.82
Price to free cash flow n/m n/m 45.34
EV/EBITDA 13.92 16.63 12.40
EV/Sales 3.52 7.01 4.95
Earnings yield 4.42% 4.92% 5.12%
Free cash flow yield (7.93%) (7.68%) (5.93%)

Profitability

Metric FE LNT Utilities Regulated Electric median
Gross margin 63.43% 77.64% 62.00%
Operating margin 14.88% 22.63% 21.72%
Net margin 7.40% 20.74% 13.45%
Free cash flow margin (13.30%) (32.49%) (11.71%)
Return on equity 8.37% 12.36% 9.94%
Return on assets 2.08% 3.69% 2.85%
Return on invested capital 3.40% 3.13% 3.95%

Growth

Metric FE LNT Utilities Regulated Electric median
Revenue growth (TTM) 12.20% 5.36% 7.78%
EPS growth (last fiscal year) 3.53% 16.73% 6.01%
Revenue growth, 5-year CAGR 6.94% 5.01% 6.72%
Net income growth, 5-year CAGR (1.12%) 5.70% 6.50%

Health

Metric FE LNT Utilities Regulated Electric median
Debt to equity 2.07 1.61 1.54
Current ratio 0.38 0.51 0.88
Net debt to EBITDA 7.04 6.18 5.27

Dividend

Metric FE LNT Utilities Regulated Electric median
Dividend yield 4.86% 2.91% 3.16%
Payout ratio 1.10 0.60 0.63

Size

Metric FE LNT Utilities Regulated Electric median
Market cap 27.27b 19.05b 26.54b

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