Critical Comparison: Alliant Energy (NASDAQ:LNT) versus Commerce Energy Group (OTCMKTS:CMNR)

Alliant Energy (NASDAQ:LNT) and Commerce Energy Group (OTCMKTS:CMNR) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alliant Energy	0	3	9	0	2.75
Commerce Energy Group	0	0	0	0	0.00

Alliant Energy presently has a consensus target price of $75.44, suggesting a potential upside of 3.56%. Given Alliant Energy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Alliant Energy is more favorable than Commerce Energy Group.

Institutional & Insider Ownership

79.9% of Alliant Energy shares are owned by institutional investors. 0.3% of Alliant Energy shares are owned by company insiders. Comparatively, 0.9% of Commerce Energy Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Alliant Energy and Commerce Energy Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alliant Energy	$4.36 billion	4.31	$810.00 million	$3.15	23.13
Commerce Energy Group	N/A	N/A	N/A	N/A	N/A

Alliant Energy has higher revenue and earnings than Commerce Energy Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alliant Energy	18.57%	11.51%	3.45%
Commerce Energy Group	N/A	N/A	N/A

Summary

Alliant Energy beats Commerce Energy Group on 8 of the 9 factors compared between the two stocks.

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.

About Commerce Energy Group

Commerce Energy Group Inc. through its subsidiaries provides electric power and natural gas to residential, commercial, industrial and institutional customers in California, Pennsylvania, Michigan, Maryland, New Jersey, Texas, Florida, Georgia, Nevada, and Ohio. The company was founded in 1997 and is based in Costa Mesa, California.