Dominion Energy (NYSE:D) versus Consolidated Edison (NYSE:ED) Financial Comparison

Consolidated Edison (NYSE:ED) and Dominion Energy (NYSE:D) are both large-cap utilities companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Insider & Institutional Ownership

66.3% of Consolidated Edison shares are owned by institutional investors. Comparatively, 73.0% of Dominion Energy shares are owned by institutional investors. 0.2% of Consolidated Edison shares are owned by insiders. Comparatively, 0.1% of Dominion Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Consolidated Edison pays an annual dividend of $3.55 per share and has a dividend yield of 3.0%. Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 3.9%. Consolidated Edison pays out 56.8% of its earnings in the form of a dividend. 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. Consolidated Edison has raised its dividend for 52 consecutive years.

Profitability

This table compares Consolidated Edison and Dominion Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Consolidated Edison	12.70%	8.58%	2.88%
Dominion Energy	13.99%	10.09%	2.75%

Volatility and Risk

Consolidated Edison has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, Dominion Energy has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Valuation and Earnings

This table compares Consolidated Edison and Dominion Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consolidated Edison	$16.92 billion	2.62	$2.02 billion	$6.25	19.08
Dominion Energy	$16.51 billion	3.65	$3.00 billion	$3.01	22.76

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Consolidated Edison and Dominion Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consolidated Edison	6	8	5	0	1.95
Dominion Energy	1	8	4	1	2.36

Consolidated Edison currently has a consensus target price of $109.74, suggesting a potential downside of 7.99%. Dominion Energy has a consensus target price of $69.33, suggesting a potential upside of 1.20%. Given Dominion Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Dominion Energy is more favorable than Consolidated Edison.

Summary

Dominion Energy beats Consolidated Edison on 11 of the 18 factors compared between the two stocks.

About Consolidated Edison

Consolidated Edison, Inc. is an energy holding company whose principal business is delivering electricity, natural gas and steam through regulated utility subsidiaries. Its services include generating, transmitting and distributing energy to residential, commercial and industrial customers. Its largest subsidiary, Consolidated Edison Company of New York, serves customers in New York City and Westchester County. Orange and Rockland Utilities serves parts of southeastern New York and northern New Jersey.

About Dominion Energy

Dominion Energy, Inc. (NYSE: D) is an energy company focused primarily on regulated electric and natural gas utility services. Its businesses generate, transmit and distribute electricity and deliver natural gas to residential, commercial and industrial customers. The company’s electric utility operations serve customers in Virginia and northeastern North Carolina, as well as parts of South Carolina through Dominion Energy South Carolina. Its power portfolio includes nuclear, natural gas, solar and other energy sources.