Evergy (NASDAQ:EVRG) & IDACORP (NYSE:IDA) Critical Analysis

IDACORP (NYSE:IDA) and Evergy (NASDAQ:EVRG) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Dividends

IDACORP pays an annual dividend of $3.52 per share and has a dividend yield of 2.6%. Evergy pays an annual dividend of $2.78 per share and has a dividend yield of 3.6%. IDACORP pays out 60.5% of its earnings in the form of a dividend. Evergy pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. IDACORP has increased its dividend for 13 consecutive years and Evergy has increased its dividend for 20 consecutive years. Evergy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares IDACORP and Evergy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IDACORP	17.59%	9.35%	3.27%
Evergy	14.45%	8.66%	2.66%

Risk & Volatility

IDACORP has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Evergy has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Insider and Institutional Ownership

89.1% of IDACORP shares are owned by institutional investors. Comparatively, 87.2% of Evergy shares are owned by institutional investors. 0.5% of IDACORP shares are owned by company insiders. Comparatively, 1.4% of Evergy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares IDACORP and Evergy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IDACORP	$1.83 billion	4.01	$289.17 million	$5.82	23.26
Evergy	$5.88 billion	3.04	$873.50 million	$3.65	21.25

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for IDACORP and Evergy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IDACORP	1	1	8	0	2.70
Evergy	0	2	7	1	2.90

IDACORP currently has a consensus price target of $137.67, indicating a potential upside of 1.67%. Evergy has a consensus price target of $83.63, indicating a potential upside of 7.81%. Given Evergy’s stronger consensus rating and higher probable upside, analysts clearly believe Evergy is more favorable than IDACORP.

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.

About Evergy

Evergy, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in the United States. The company generates electricity through coal, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources. It serves residences, commercial firms, industrials, municipalities, and other electric utilities. The company was incorporated in 2017 and is headquartered in Kansas City, Missouri.