Companies operating in the Zacks Utility - Electric Power industry are engaged in the generation, transmission and distribution of electricity, serving millions of customers across the United States. The industry, supported by its regulated business model and rising electricity demand, generates predictable earnings and cash flows. Regular dividend payments and periodic share repurchases make these utilities attractive options for investors.
Electricity demand across the United States continues to increase, fueled by rapid data center expansion, accelerating electrification and rising residential power consumption. To meet this demand, utilities are investing in renewable energy, grid modernization and distribution infrastructure to enhance system reliability.
Amid growing demand for reliable power and grid investments, let us compare IDACORP, Inc. IDA and OGE Energy OGE. Both regulated electric utilities benefit from rising electricity demand, supportive regulatory frameworks and ongoing investments in grid modernization, infrastructure upgrades and renewable energy expansion.
IDACORP is benefiting from steady customer growth, increasing electricity demand and constructive regulatory mechanisms, supporting timely cost recovery and earnings stability. Its strategic investment plan supports infrastructure expansion, renewable energy integration and high-voltage transmission projects, enhancing service reliability and supporting long-term growth.
OGE Energy is benefiting from strong customer growth, rising electricity demand from expanding data centers and sustained economic development across its service territory, supporting revenues and earnings growth. Its systematic capital investment for infrastructure modernization improves operational efficiency, enhances grid reliability, supports growing electricity demand and strengthens long-term regulated earnings and sustainable growth.
IDACORP and OGE Energy both maintain strong positions in the regulated utility sector. A comparison of their fundamentals can help determine which stock offers the better investment opportunity.
IDA & OGE’s Earnings Growth Projections
The Zacks Consensus Estimate for IDA’s earnings per share (EPS) is pegged at $6.39 in 2026 and $6.94 in 2027, suggesting year-over-year growth of 8.31% and 8.52%, respectively. IDA’s long-term (three to five years) earnings growth is currently pinned at 7.85%.
The Zacks Consensus Estimate for OGE’s EPS is pegged at $2.43 in 2026 and $2.59 in 2027, suggesting year-over-year growth of 4.74% and 6.92%, respectively. OGE’s long-term earnings growth is currently pinned at 5.57%.
Debt to Capital
Companies operating in the utility space rely heavily on debt financing to fund operations, maintain system reliability and meet rising electricity demand. Their capital-intensive business model requires continuous investments in generation, transmission and distribution infrastructure, making access to low-cost financing essential for supporting long-term growth and delivering reliable electric service.
IDACORP’s debt-to-capital ratio stands at 50.98%, below OGE Energy’s 54.27%. Both companies' debt-to-capital ratios remain below the industry average of 60.71%. However, OGE carries higher leverage than IDA, indicating a greater reliance on borrowed funds.
IDA & OGE’s Dividend Yield
The regulated nature of operation allows utilities to earn a stable return on investment and distribute regular dividends to shareholders, reflecting their focus on delivering dependable returns and long-term shareholder value. It also indicates the company's predictable earnings and solid cash flow generation.
Currently, OGE’s dividend yield is 3.44%, while that for IDA is 2.28%. The dividend yields of both companies are higher than the S&P 500’s yield of 1.40%.
IDA & OGE’s Capital Investment Plans
Utilities require substantial capital investments to develop infrastructure, improve system reliability and maintain their extensive asset base. Power generation and distribution utilities regularly invest in renewable energy expansion, battery storage, transmission and distribution upgrades, and the replacement of outdated equipment to improve grid resilience, operational efficiency and long-term service reliability.
IDACORP plans to invest $1.3-$1.5 billion during 2026 for infrastructure development and grid modernization to ensure safe and reliable service for customers. OGE Energy plans to invest $7.3 billion between 2026 and 2030 to enhance the safety, reliability and resiliency of its transmission, distribution and generation infrastructure.
IDA & OGE’s Price Performance
IDACORP’s shares have gained 11.5% over the past month compared with OGE Energy’s rally of 5.3%.
Overall Assessment
IDACORP and OGE Energy continue to benefit from increasing electricity demand, driven by economic growth, customer expansion, data center development and capital investments that enhance grid reliability and support long-term growth.
IDACORP, supported by stable EPS growth, lower debt levels and better stock price performance, appears to be a more attractive choice in the utility sector.
Based on the above discussion, IDACORP currently has an edge over OGE Energy, though both carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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