Head-To-Head Analysis: Dominion Energy (D) & Its Peers

Dominion Energy (NYSE:D) is one of 52 public companies in the “Multi – Utilities” industry, but how does it weigh in compared to its competitors? We will compare Dominion Energy to related businesses based on the strength of its risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Risk and Volatility

Dominion Energy has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Dominion Energy’s competitors have a beta of 0.68, indicating that their average share price is 32% less volatile than the S&P 500.

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	13.99%	10.09%	2.75%
Dominion Energy Competitors	8.85%	14.88%	4.08%

Dividends

Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 3.9%. Dominion Energy pays out 88.7% 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, “Multi – Utilities” companies pay a dividend yield of 9.3% and pay out 33.6% of their earnings in the form of a dividend. Dominion Energy lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Dominion Energy and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dominion Energy	1	8	4	1	2.36
Dominion Energy Competitors	1053	4115	4432	87	2.37

Dominion Energy currently has a consensus target price of $69.33, indicating a potential upside of 1.10%. As a group, “Multi – Utilities” companies have a potential upside of 30.57%. Given Dominion Energy’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Dominion Energy has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

73.0% of Dominion Energy shares are held by institutional investors. Comparatively, 60.7% of shares of all “Multi – Utilities” companies are held by institutional investors. 0.1% of Dominion Energy shares are held by company insiders. Comparatively, 10.1% of shares of all “Multi – Utilities” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Dominion Energy	$16.51 billion	$3.00 billion	22.78
Dominion Energy Competitors	$16.30 billion	$269.64 million	28.16

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.

Summary

Dominion Energy competitors beat Dominion Energy on 10 of the 15 factors compared.

Dominion Energy Company Profile

Dominion Energy, Inc. produces and distributes energy in the United States. It operates through three operating segments: Dominion Energy Virginia, Dominion Energy South Carolina, and Contracted Energy. The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to approximately 2.8 million residential, commercial, industrial, and governmental customers in Virginia and North Carolina. The Dominion Energy South Carolina segment generates, transmits, and distributes electricity to approximately 0.8 million customers in the central, southern, and southwestern portions of South Carolina; and distributes natural gas to approximately 0.4 million residential, commercial, and industrial customers in South Carolina. The Contracted Energy segment is involved in the nonregulated long-term contracted renewable electric generation and renewable natural gas facility. As of December 31, 2023, the company's portfolio of assets included approximately 29.5 gigawatt of electric generating capacity; 10,600 miles of electric transmission lines; 79,300 miles of electric distribution lines; and 94,800 miles of gas distribution mains and related service facilities. The company was formerly known as Dominion Resources, Inc. Dominion Energy, Inc. was incorporated in 1983 and is headquartered in Richmond, Virginia.