Innergex Renewable Energy (OTCMKTS:INGXF – Get Free Report) and Dominion Energy (NYSE:D – Get Free Report) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.
Institutional & Insider Ownership
73.0% of Dominion Energy shares are held by institutional investors. 4.7% of Innergex Renewable Energy shares are held by company insiders. Comparatively, 0.1% of Dominion Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Innergex Renewable Energy and Dominion Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Innergex Renewable Energy | $764.31 million | 2.69 | $11.60 million | $0.14 | 72.18 |
| Dominion Energy | $14.46 billion | 3.81 | $2.12 billion | $2.94 | 21.97 |
Dominion Energy has higher revenue and earnings than Innergex Renewable Energy. Dominion Energy is trading at a lower price-to-earnings ratio than Innergex Renewable Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Innergex Renewable Energy and Dominion Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Innergex Renewable Energy | 5.51% | 5.30% | 0.76% |
| Dominion Energy | 16.17% | 9.60% | 2.69% |
Volatility and Risk
Innergex Renewable Energy has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Dominion Energy has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Innergex Renewable Energy and Dominion Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innergex Renewable Energy | 0 | 2 | 0 | 0 | 2.00 |
| Dominion Energy | 1 | 8 | 3 | 0 | 2.17 |
Dominion Energy has a consensus target price of $64.33, suggesting a potential downside of 0.39%. Given Dominion Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Dominion Energy is more favorable than Innergex Renewable Energy.
Dividends
Innergex Renewable Energy pays an annual dividend of $0.26 per share and has a dividend yield of 2.6%. Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 4.1%. Innergex Renewable Energy pays out 185.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Dominion Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Dominion Energy beats Innergex Renewable Energy on 14 of the 16 factors compared between the two stocks.
About Innergex Renewable Energy
Innergex Renewable Energy Inc. operates as an independent renewable power producer in Canada, the United States, France, and Chile. It acquires, owns, develops, and operates renewable power-generating and energy storage facilities primarily in hydroelectric, wind, and solar power sectors. The company operates through three segments: Hydroelectric Power Generation, Wind Power Generation, and Solar Power Generation. As of February 21, 2024, it owned and operated 87 facilities with a net installed capacity of 3,600 megawatts, including 41 hydroelectric facilities, 35 wind facilities, 9 solar facilities, and 2 battery energy storage facilities. The company is headquartered in Longueuil, Canada.
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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