Head-To-Head Analysis: Polar Power (NASDAQ:POLA) & Alliant Energy (NASDAQ:LNT)

Polar Power (NASDAQ:POLA) and Alliant Energy (NASDAQ:LNT) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Polar Power and Alliant Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Polar Power	0	0	0	0	0.00
Alliant Energy	1	5	4	0	2.30

Alliant Energy has a consensus price target of $65.50, indicating a potential downside of 1.03%. Given Alliant Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Alliant Energy is more favorable than Polar Power.

Volatility and Risk

Polar Power has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Alliant Energy has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Profitability

This table compares Polar Power and Alliant Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Polar Power	-38.21%	-39.10%	-25.54%
Alliant Energy	20.07%	12.25%	3.75%

Earnings and Valuation

This table compares Polar Power and Alliant Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Polar Power	$13.97 million	0.37	-$4.68 million	($2.31)	-0.88
Alliant Energy	$3.98 billion	4.27	$690.00 million	$3.24	20.43

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

Insider and Institutional Ownership

26.1% of Polar Power shares are held by institutional investors. Comparatively, 79.9% of Alliant Energy shares are held by institutional investors. 32.5% of Polar Power shares are held by insiders. Comparatively, 0.3% of Alliant Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Alliant Energy beats Polar Power on 13 of the 14 factors compared between the two stocks.

About Polar Power

Polar Power, Inc. designs, manufactures, and sells direct current (DC) power generators, renewable energy, and cooling systems in the United States and internationally. The company offers DC base power systems, DC hybrid power systems, DC solar hybrid power systems, and mobile power systems. Its DC power systems are available in diesel, natural gas, LPG/propane, and renewable fuel formats. It serves customers in the telecommunications, military, commercial, industrial, and marine markets. In addition, the company sells its products through a direct sales force, and independent service providers and dealers. The company was formerly known as Polar Products, Inc. and changed its name to Polar Power, Inc. in October 1991. Polar Power, Inc. was incorporated in 1979 and is based in Gardena, California.

About Alliant Energy

Alliant Energy Corporation operates as a utility holding company that provides regulated electricity and natural gas services in the United States. It operates in three segments: Utility Electric Operations, Utility Gas Operations, and Utility Other. The company, through its subsidiary, Interstate Power and Light Company (IPL), primarily generates and distributes electricity, and distributes and transports natural gas to retail customers in Iowa; sells electricity to wholesale customers in Minnesota, Illinois, and Iowa; and generates and distributes steam in Cedar Rapids, Iowa. Alliant Energy Corporation, through its other subsidiary, Wisconsin Power and Light Company (WPL), generates and distributes electricity, and distributes and transports natural gas to retail customers in Wisconsin; and sells electricity to wholesale customers in Wisconsin. It serves retail customers in the farming, agriculture, industrial manufacturing, chemical, packaging, and food industries, as well as wholesale customers comprising municipalities and rural electric cooperatives. In addition, the company owns and operates a short-line rail freight service in Iowa; a Mississippi River barge, rail, and truck freight terminal in Illinois; freight brokerage services; wind turbine blade recycling services; and a rail-served warehouse in Iowa. Further, it holds interests in a natural gas-fired electric generating unit near Sheboygan Falls, Wisconsin; and a wind farm located in Oklahoma. The company was formerly known as Interstate Energy Corp. and changed its name to Alliant Energy Corporation in May 1999. Alliant Energy Corporation was incorporated in 1981 and is headquartered in Madison, Wisconsin.