Dominion Energy (NYSE:D – Get Free Report) and Evergy (NASDAQ:EVRG – Get Free Report) are both large-cap utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.
Profitability
This table compares Dominion Energy and Evergy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dominion Energy | 15.55% | 9.51% | 2.59% |
| Evergy | 14.87% | 8.84% | 2.73% |
Analyst Recommendations
This is a summary of current ratings for Dominion Energy and Evergy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dominion Energy | 1 | 7 | 1 | 0 | 2.00 |
| Evergy | 0 | 0 | 8 | 1 | 3.11 |
Dividends
Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 4.6%. Evergy pays an annual dividend of $2.67 per share and has a dividend yield of 3.8%. Dominion Energy pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Evergy pays out 70.3% of its earnings in the form of a dividend. Evergy has raised its dividend for 20 consecutive years.
Earnings and Valuation
This table compares Dominion Energy and Evergy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dominion Energy | $14.46 billion | 3.44 | $2.12 billion | $2.67 | 21.84 |
| Evergy | $5.85 billion | 2.74 | $873.50 million | $3.80 | 18.30 |
Dominion Energy has higher revenue and earnings than Evergy. Evergy 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
73.0% of Dominion Energy shares are owned by institutional investors. Comparatively, 87.2% of Evergy shares are owned by institutional investors. 0.1% of Dominion Energy shares are owned by company insiders. Comparatively, 1.4% of Evergy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Dominion Energy has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Evergy has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.
Summary
Evergy beats Dominion Energy on 10 of the 18 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 Evergy
Evergy, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in the United States. The company generates electricity through coal, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources. It serves residences, commercial firms, industrials, municipalities, and other electric utilities. The company was incorporated in 2017 and is headquartered in Kansas City, Missouri.
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