Dominion Energy (NYSE: D) is one of 85 public companies in the “Electric Utilities” industry, but how does it contrast to its competitors? We will compare Dominion Energy to related companies based on the strength of its risk, profitability, analyst recommendations, earnings, valuation, institutional ownership and dividends.

Risk and Volatility

Dominion Energy has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, Dominion Energy’s competitors have a beta of 0.70, suggesting that their average stock price is 30% less volatile than the S&P 500.

Valuation & Earnings

This table compares Dominion Energy and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Dominion Energy $12.42 billion $6.23 billion 22.55
Dominion Energy Competitors $7.19 billion $2.12 billion 30.82

Dominion Energy has higher revenue and earnings than its competitors. Dominion Energy is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Dominion Energy pays an annual dividend of $3.02 per share and has a dividend yield of 3.9%. 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. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 103.7% of their earnings in the form of a dividend. Dominion Energy has raised its dividend for 8 consecutive years. Dominion Energy is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations for Dominion Energy and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dominion Energy 0 8 2 0 2.20
Dominion Energy Competitors 505 2861 2307 40 2.33

Dominion Energy presently has a consensus price target of $79.57, suggesting a potential upside of 2.00%. As a group, “Electric Utilities” companies have a potential upside of 6.05%. Given Dominion Energy’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Dominion Energy has less favorable growth aspects than its competitors.

Profitability

This table compares Dominion Energy and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dominion Energy 17.48% 14.04% 3.29%
Dominion Energy Competitors -10.82% 3.51% 0.54%

Institutional & Insider Ownership

64.4% of Dominion Energy shares are owned by institutional investors. Comparatively, 65.5% of shares of all “Electric Utilities” companies are owned by institutional investors. 0.4% of Dominion Energy shares are owned by insiders. Comparatively, 2.9% of shares of all “Electric Utilities” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Dominion Energy competitors beat Dominion Energy on 8 of the 15 factors compared.

Dominion Energy Company Profile

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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