Alliant Energy Corporation (LNT) vs Pinnacle West Capital Corporation (PNW)

Alliant Energy Corporation and Pinnacle West Capital Corporation are both Utilities Regulated Electric companies. Alliant Energy Corporation is the larger, with a market value of $16.4B against $11.0B — 1.5× the size. Pinnacle West Capital Corporation trades at the lower P/E: 17.2× against 20.1×. Alliant Energy Corporation grew revenue faster over the last twelve months: 6.83% against 5.69%. Alliant Energy Corporation has the higher net margin (18.5% vs 11.5%) and the lower return on invested capital (3.12% vs 3.86%). Both pay a dividend; Pinnacle West Capital Corporation yields more (5.26% vs 3.81%). Across the 22 metrics below, Pinnacle West Capital Corporation leads on 14 and Alliant Energy Corporation on 8.

Valuation

Metric LNT PNW Utilities Regulated Electric median
P/E 20.06 17.24 18.84
P/S 3.71 2.00 2.52
P/B 2.18 1.57 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 15.45 8.40 11.82
EV/Sales 6.44 4.05 4.58
Earnings yield 4.98% 5.80% 5.30%
Free cash flow yield (7.80%) (4.52%) (5.06%)

Profitability

Metric LNT PNW Utilities Regulated Electric median
Gross margin 76.90% 62.70% 66.28%
Operating margin 22.11% 20.52% 21.79%
Net margin 18.45% 11.52% 12.94%
Free cash flow margin (28.95%) (9.05%) (11.51%)
Return on equity 11.14% 9.21% 9.75%
Return on assets 3.33% 2.07% 2.75%
Return on invested capital 3.12% 3.86% 3.87%

Growth

Metric LNT PNW Utilities Regulated Electric median
Revenue growth (TTM) 6.83% 5.69% 7.43%
EPS growth (last fiscal year) 16.73% (3.63%) —
Revenue growth, 5-year CAGR 5.01% 8.28% 6.75%
Net income growth, 5-year CAGR 5.70% 2.29% 6.44%

Health

Metric LNT PNW Utilities Regulated Electric median
Debt to equity 1.61 1.61 1.53
Current ratio 0.47 0.59 0.81
Net debt to EBITDA 6.18 4.22 5.25

Dividend

Metric LNT PNW Utilities Regulated Electric median
Dividend yield 3.81% 5.26% 4.33%
Payout ratio 0.67 0.97 0.66

Size

Metric LNT PNW Utilities Regulated Electric median
Market cap 16.42b 11.04b 22.90b

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