Dominion Energy (NYSE: D) and Ormat Technologies (NYSE:ORA) are both mid-cap utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Profitability

This table compares Dominion Energy and Ormat Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dominion Energy 17.21% 13.32% 3.16%
Ormat Technologies 16.99% 9.41% 4.58%

Volatility and Risk

Dominion Energy has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, Ormat Technologies has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Dominion Energy and Ormat Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dominion Energy 0 11 4 0 2.27
Ormat Technologies 0 1 6 0 2.86

Dominion Energy currently has a consensus price target of $81.00, indicating a potential downside of 4.01%. Ormat Technologies has a consensus price target of $66.71, indicating a potential upside of 8.57%. Given Ormat Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Ormat Technologies is more favorable than Dominion Energy.

Insider & Institutional Ownership

64.7% of Dominion Energy shares are owned by institutional investors. Comparatively, 46.5% of Ormat Technologies shares are owned by institutional investors. 0.4% of Dominion Energy shares are owned by insiders. Comparatively, 14.7% of Ormat Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Dominion Energy pays an annual dividend of $3.08 per share and has a dividend yield of 3.7%. Ormat Technologies pays an annual dividend of $0.32 per share and has a dividend yield of 0.5%. Dominion Energy pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ormat Technologies pays out 13.7% of its earnings in the form of a dividend. Ormat Technologies has raised its dividend for 8 consecutive years.

Earnings and Valuation

This table compares Dominion Energy and Ormat Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dominion Energy $11.73 billion 4.63 $2.12 billion $3.39 24.89
Ormat Technologies $662.59 million 4.69 $93.93 million $2.33 26.37

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

Summary

Ormat Technologies beats Dominion Energy on 10 of the 17 factors compared between the two stocks.

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.

About Ormat Technologies

Ormat Technologies, Inc. is engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal and recovered energy-based power plants. Its equipment manufacturing operations are located in Israel. It conducts its business activities in two business segments: Electricity segment and Product segment. The Electricity segment develops, builds, owns and operates geothermal and recovered energy-based power plants in the United States and geothermal power plants in other countries around the world, and sells the electricity it generates. The Product Segment designs, manufactures and sells equipment for geothermal and recovered energy-based electricity generation and remote power units, and provide services relating to the engineering, procurement, construction, operation and maintenance of geothermal, and recovered energy-based power plants. It manufactures products that produce electricity from recovered energy or waste heat.

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