Critical Review: Brookfield Renewable Partners (NYSE:BEP) vs. Dominion Energy (NYSE:D)

Dominion Energy (NYSE:DGet Rating) and Brookfield Renewable Partners (NYSE:BEPGet Rating) are both large-cap utilities companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Earnings and Valuation

This table compares Dominion Energy and Brookfield Renewable Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dominion Energy $13.96 billion 4.95 $3.29 billion $3.58 23.79
Brookfield Renewable Partners $4.10 billion 2.47 -$124.00 million ($0.62) -59.24

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

Dividends

Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 3.1%. Brookfield Renewable Partners pays an annual dividend of $1.28 per share and has a dividend yield of 3.5%. Dominion Energy pays out 74.6% of its earnings in the form of a dividend. Brookfield Renewable Partners pays out -206.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dominion Energy has increased its dividend for 1 consecutive years and Brookfield Renewable Partners has increased its dividend for 1 consecutive years. Brookfield Renewable Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for Dominion Energy and Brookfield Renewable Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dominion Energy 1 3 3 0 2.29
Brookfield Renewable Partners 0 2 14 0 2.88

Dominion Energy presently has a consensus price target of $85.71, suggesting a potential upside of 0.65%. Brookfield Renewable Partners has a consensus price target of $42.67, suggesting a potential upside of 16.16%. Given Brookfield Renewable Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Brookfield Renewable Partners is more favorable than Dominion Energy.

Risk and Volatility

Dominion Energy has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Brookfield Renewable Partners has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Dominion Energy and Brookfield Renewable Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dominion Energy 20.81% 12.99% 3.28%
Brookfield Renewable Partners -3.59% -0.72% -0.29%

Institutional & Insider Ownership

68.4% of Dominion Energy shares are owned by institutional investors. Comparatively, 56.0% of Brookfield Renewable Partners shares are owned by institutional investors. 0.2% of Dominion Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Dominion Energy beats Brookfield Renewable Partners on 10 of the 16 factors compared between the two stocks.

About Dominion Energy (Get Rating)

Dominion Energy, Inc. produces and distributes energy. The company operates through four segments: Dominion Energy Virginia, Gas Distribution, Dominion Energy South Carolina, and Contracted Assets. The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to residential, commercial, industrial, and governmental customers in Virginia and North Carolina. The Gas Distribution segment engages in the regulated natural gas gathering, storage, transportation, distribution, and sales activities, as well as distributes nonregulated renewable natural gas. This segment serves residential, commercial, and industrial customers. The Dominion Energy South Carolina segment generates, transmits, and distributes electricity and natural gas to residential, commercial, and industrial customers in South Carolina. The Contracted Assets segment is involved in the energy marketing and price risk activities. As of December 31, 2021, the company's portfolio of assets included approximately 30.2 gigawatt of electric generating capacity; 10,700 miles of electric transmission lines; 78,000 miles of electric distribution lines; and 95,700 miles of gas distribution mains and related service facilities. It serves approximately 7 million customers. The company sells electricity at wholesale prices to rural electric cooperatives and municipalities, as well as into wholesale electricity markets. The company was formerly known as Dominion Resources, Inc. and changed its name to Dominion Energy, Inc. in May 2017. Dominion Energy, Inc. was incorporated in 1983 and is headquartered in Richmond, Virginia.

About Brookfield Renewable Partners (Get Rating)

Brookfield Renewable Partners L.P. owns a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India, and China. The company generates electricity through hydroelectric, wind, solar, distributed generation, pumped storage, cogeneration, and biomass sources. Its portfolio consists of approximately 21,000 megawatts of installed capacity. Brookfield Renewable Partners Limited operates as the general partner of Brookfield Renewable Partners L.P. The company was formerly known as Brookfield Renewable Energy Partners L.P. and changed its name to Brookfield Renewable Partners L.P. in May 2016. Brookfield Renewable Partners L.P. was founded in 1999 and is headquartered in Hamilton, Bermuda.

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