Analyzing Calpine Corporation (CPN) & Dominion Energy (D)
Calpine Corporation (NYSE: CPN) and Dominion Energy (NYSE:D) are both mid-cap utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.
This is a summary of current recommendations for Calpine Corporation and Dominion Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Calpine Corporation presently has a consensus price target of $14.84, indicating a potential upside of 0.30%. Dominion Energy has a consensus price target of $79.57, indicating a potential upside of 2.36%. Given Dominion Energy’s higher probable upside, analysts clearly believe Dominion Energy is more favorable than Calpine Corporation.
Earnings and Valuation
This table compares Calpine Corporation and Dominion Energy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Calpine Corporation||$8.03 billion||0.66||$1.55 billion||$0.13||113.85|
|Dominion Energy||$12.42 billion||4.02||$6.23 billion||$3.46||22.47|
Dominion Energy has higher revenue and earnings than Calpine Corporation. Dominion Energy is trading at a lower price-to-earnings ratio than Calpine Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Calpine Corporation has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Dominion Energy has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.
This table compares Calpine Corporation and Dominion Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
96.9% of Calpine Corporation shares are held by institutional investors. Comparatively, 64.4% of Dominion Energy shares are held by institutional investors. 1.2% of Calpine Corporation shares are held by insiders. Comparatively, 0.4% of Dominion Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Dominion Energy pays an annual dividend of $3.02 per share and has a dividend yield of 3.9%. Calpine Corporation does not pay a dividend. Dominion Energy pays out 87.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Calpine Corporation has raised its dividend for 8 consecutive years.
Dominion Energy beats Calpine Corporation on 9 of the 16 factors compared between the two stocks.
About Calpine Corporation
Calpine Corporation is a power generation company. The Company is engaged in the ownership and operation of primarily natural gas-fired and geothermal power plants in North America. The Company’s segments include West (including geothermal), Texas and East (including Canada). In the Northeast and Mid-Atlantic regions, the Company has generating units capable of burning either natural gas or fuel oil. As of December 31, 2016, the Company’s portfolio consisted of two types of power generation technologies, including natural gas-fired combustion turbines, such as combined-cycle plants, and renewable geothermal conventional steam turbines. As of December 31, 2016, the Company’s portfolio included 80 power plants, including one under construction, with an aggregate generation capacity of 25,908 Megawatt (MW) and 828 MW under construction. As of December 31, 2016, it had four MW of capacity from solar power generation technology at its Vineland Solar Energy Center in New Jersey.
About Dominion Energy
Dominion Energy, Inc., formerly Dominion Resources, Inc., is a producer and transporter of energy. Dominion is focused on its investment in regulated electric generation, transmission and distribution and regulated natural gas transmission and distribution infrastructure. It operates through three segments: Dominion Virginia Power operating segment (DVP), Dominion Generation, Dominion Energy, and Corporate and Other. The DVP segment includes regulated electric distribution and regulated electric transmission. The Dominion Generation segment includes regulated electric fleet and merchant electric fleet. The Dominion Energy segment includes gas transmission and storage, gas gathering and processing, liquefied natural gas import and storage, and nonregulated retail energy marketing. As of December 31, 2016, Dominion served utility and retail energy customers, and operated an underground natural gas storage system with approximately one trillion cubic feet of storage capacity.
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