Dominion Energy (NYSE:D – Get Free Report) and E.On (OTCMKTS:EONGY – Get Free Report) are both large-cap utilities companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Dividends
Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 3.9%. E.On pays an annual dividend of $0.49 per share and has a dividend yield of 2.3%. 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. E.On pays out 32.7% of its earnings in the form of a dividend.
Volatility & Risk
Dominion Energy has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, E.On has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Dominion Energy and E.On, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dominion Energy | 1 | 8 | 4 | 1 | 2.36 |
| E.On | 0 | 5 | 3 | 2 | 2.70 |
Dominion Energy presently has a consensus price target of $69.33, suggesting a potential upside of 1.10%. Given Dominion Energy’s higher probable upside, research analysts clearly believe Dominion Energy is more favorable than E.On.
Valuation and Earnings
This table compares Dominion Energy and E.On”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dominion Energy | $16.51 billion | 3.65 | $3.00 billion | $3.01 | 22.78 |
| E.On | $89.03 billion | 0.62 | $1.96 billion | $1.50 | 14.17 |
Dominion Energy has higher earnings, but lower revenue than E.On. E.On is trading at a lower price-to-earnings ratio than Dominion Energy, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
73.0% of Dominion Energy shares are held by institutional investors. 0.1% of Dominion Energy shares 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.
Profitability
This table compares Dominion Energy and E.On’s 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% |
| E.On | 4.49% | 11.35% | 2.69% |
Summary
Dominion Energy beats E.On on 11 of the 17 factors compared between the two stocks.
About Dominion Energy
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.
About E.On
E.ON SE operates as an energy company in Germany, the United Kingdom, Sweden, the Netherlands, rest of Europe, and internationally. It operates through two segments, Energy Networks and Customer Solutions. The Energy Networks segment operates power and gas distribution networks, as well as provides maintenance, repairs, and related services. The Customer Solutions segment supplies power, gas, and heat, as well as with products and services that enhance energy efficiency to residential, small and medium-sized enterprises, large commercial and industrial, sales partners, and public entities. Additionally, it provides SmartSim, a software solution that allows renewable gases to be fed into gas grids; gas quality tracking solutions; GasPro, a mobile gas sample collector; metering solutions; and GasCalc, a software that calculates natural gases, LNG, and biogases properties. The company was founded in 1923 and is headquartered in Essen, Germany.
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