Dominion Energy (NYSE: D) is one of 87 publicly-traded companies in the “Electric Utilities” industry, but how does it compare to its peers? We will compare Dominion Energy to related companies based on the strength of its dividends, profitability, institutional ownership, earnings, analyst recommendations, risk and valuation.
Volatility & Risk
Dominion Energy has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Dominion Energy’s peers have a beta of 0.65, indicating that their average share price is 35% less volatile than the S&P 500.
This table compares Dominion Energy and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dominion Energy Competitors||-10.84%||3.41%||0.48%|
Institutional and Insider Ownership
64.4% of Dominion Energy shares are held by institutional investors. Comparatively, 65.6% of shares of all “Electric Utilities” companies are held by institutional investors. 0.4% of Dominion Energy shares are held by company insiders. Comparatively, 2.7% of shares of all “Electric Utilities” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of recent ratings for Dominion Energy and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dominion Energy Competitors||530||2940||2359||41||2.33|
Dominion Energy presently has a consensus price target of $80.11, suggesting a potential downside of 0.69%. As a group, “Electric Utilities” companies have a potential upside of 6.77%. Given Dominion Energy’s peers stronger consensus rating and higher possible upside, analysts clearly believe Dominion Energy has less favorable growth aspects than its peers.
Earnings and Valuation
This table compares Dominion Energy and its peers revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Dominion Energy||$11.73 billion||$2.12 billion||23.80|
|Dominion Energy Competitors||$7.66 billion||$831.80 million||53.36|
Dominion Energy has higher revenue and earnings than its peers. Dominion Energy is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Dominion Energy pays an annual dividend of $3.02 per share and has a dividend yield of 3.7%. Dominion Energy pays out 89.1% 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 3.1% and pay out 105.6% 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 peers, given its higher yield and lower payout ratio.
Dominion Energy peers 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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