MDU Resources Group (NYSE:MDU – Get Free Report) and Dominion Energy (NYSE:D – Get Free Report) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.
Dividends
MDU Resources Group pays an annual dividend of $0.58 per share and has a dividend yield of 3.1%. Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 4.2%. MDU Resources Group pays out 61.1% of its earnings in the form of a dividend. Dominion Energy pays out 93.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MDU Resources Group has increased its dividend for 1 consecutive years.
Analyst Recommendations
This is a breakdown of current recommendations for MDU Resources Group and Dominion Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MDU Resources Group | 0 | 4 | 3 | 0 | 2.43 |
| Dominion Energy | 1 | 9 | 5 | 0 | 2.27 |
Profitability
This table compares MDU Resources Group and Dominion Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MDU Resources Group | 10.75% | 6.89% | 2.58% |
| Dominion Energy | 13.98% | 9.62% | 2.64% |
Earnings and Valuation
This table compares MDU Resources Group and Dominion Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MDU Resources Group | $1.88 billion | 2.03 | $190.40 million | $0.95 | 19.53 |
| Dominion Energy | $16.51 billion | 3.39 | $3.00 billion | $2.87 | 22.17 |
Dominion Energy has higher revenue and earnings than MDU Resources Group. MDU Resources Group is trading at a lower price-to-earnings ratio than Dominion Energy, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
71.4% of MDU Resources Group shares are held by institutional investors. Comparatively, 73.0% of Dominion Energy shares are held by institutional investors. 0.5% of MDU Resources Group shares are held by insiders. Comparatively, 0.1% of Dominion Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
MDU Resources Group has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Dominion Energy has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.
Summary
Dominion Energy beats MDU Resources Group on 11 of the 17 factors compared between the two stocks.
About MDU Resources Group
MDU Resources Group, Inc. engages in the regulated energy delivery, and construction materials and services businesses in the United States. It operates through four segments: Electric, Natural Gas Distribution, Pipeline, and Construction Services. The Electric segment generates, transmits, and distributes electricity for residential, commercial, industrial, and municipal customers in Montana, North Dakota, South Dakota, and Wyoming; and operates 3,400 miles of transmission lines, 4,800 miles of distribution lines, and 82 transmission and 298 distribution substations. The Natural Gas Distribution segment distributes natural gas for residential, commercial, and industrial customers in Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota, Washington, and Wyoming; and supplies related value-added services. The Pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions; and cathodic protection and other energy-related services. The Construction Services segment offers electrical and mechanical contracting services, including the construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, mechanical piping, and services; transmission and distribution contracting services, comprise construction and maintenance of overhead and underground electrical, and gas and communication infrastructure; and manufactures and supplies transmission and distribution lines construction equipment and tools. It serves manufacturing, commercial, industrial, transportation, institutional, and renewable and government customers, as well as utilities. MDU Resources Group, Inc. was incorporated in 1924 and is headquartered in Bismarck, North Dakota.
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.
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