Critical Review: Dominion Energy (NYSE:D) and Power Assets (OTCMKTS:HGKGY)

Power Assets (OTCMKTS:HGKGY) and Dominion Energy (NYSE:D) are both large-cap utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Dividends

Power Assets pays an annual dividend of $0.16 per share and has a dividend yield of 2.0%. Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 4.4%. Dominion Energy pays out 90.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Power Assets has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Dominion Energy has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Earnings and Valuation

This table compares Power Assets and Dominion Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Power Assets	$117.77 million	145.85	$784.46 million	N/A	N/A
Dominion Energy	$14.46 billion	3.55	$2.12 billion	$2.94	20.44

Dominion Energy has higher revenue and earnings than Power Assets.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Power Assets and Dominion Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Assets	0	0	0	0	0.00
Dominion Energy	1	9	2	0	2.08

Dominion Energy has a consensus target price of $64.33, indicating a potential upside of 7.07%. Given Dominion Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Dominion Energy is more favorable than Power Assets.

Profitability

This table compares Power Assets and Dominion Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Power Assets	N/A	N/A	N/A
Dominion Energy	16.17%	9.60%	2.69%

Institutional and Insider Ownership

73.0% of Dominion Energy shares are owned by institutional investors. 1.0% of Power Assets shares are owned by company insiders. Comparatively, 0.1% of Dominion Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Dominion Energy beats Power Assets on 11 of the 14 factors compared between the two stocks.

About Power Assets

Power Assets Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally. It generates energy from thermal, renewable energy, and waste sources. The company also transmits and distributes oil and gas; and provides trust administration and management services. It has a generation capacity of 879 MW renewable energy/energy from waste, 5,262 MW gas fired, and 3,567 MW coal/oil fired; and operates 114,900 km of gas/oil pipeline, as well as 388,200 km of power network serving 19,790,000 customers. The company was formerly known as Hongkong Electric Holdings Limited and changed its name to Power Assets Holdings Limited in February 2011. Power Assets Holdings Limited was founded in 1889 and is based in Central, Hong Kong.

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.