Contrasting Dominion Energy (NYSE:D) & Consolidated Edison (NYSE:ED)

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

Dividends

Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 4.0%. Consolidated Edison pays an annual dividend of $3.55 per share and has a dividend yield of 3.3%. 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. Consolidated Edison pays out 58.3% of its earnings in the form of a dividend. Consolidated Edison has increased its dividend for 52 consecutive years.

Risk and Volatility

Dominion Energy has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Consolidated Edison has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500.

Earnings & Valuation

This table compares Dominion Energy and Consolidated Edison”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dominion Energy	$18.12 billion	3.22	$3.00 billion	$2.87	23.09
Consolidated Edison	$16.92 billion	2.33	$2.02 billion	$6.09	17.49

Dominion Energy has higher revenue and earnings than Consolidated Edison. Consolidated Edison 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 and Insider Ownership

73.0% of Dominion Energy shares are owned by institutional investors. Comparatively, 66.3% of Consolidated Edison shares are owned by institutional investors. 0.1% of Dominion Energy shares are owned by company insiders. Comparatively, 0.2% of Consolidated Edison shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dominion Energy	13.98%	9.62%	2.64%
Consolidated Edison	12.53%	8.44%	2.83%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Dominion Energy and Consolidated Edison, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dominion Energy	1	9	5	0	2.27
Consolidated Edison	6	6	3	0	1.80

Dominion Energy currently has a consensus target price of $69.93, suggesting a potential upside of 5.54%. Consolidated Edison has a consensus target price of $108.93, suggesting a potential upside of 2.25%. Given Dominion Energy’s stronger consensus rating and higher probable upside, research analysts plainly believe Dominion Energy is more favorable than Consolidated Edison.

Summary

Dominion Energy beats Consolidated Edison on 12 of the 17 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 Consolidated Edison

Consolidated Edison, Inc., through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States. It offers electric services to approximately 3.7 million customers in New York City and Westchester County; gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County; and steam to approximately 1,530 customers in parts of Manhattan. The company also supplies electricity to approximately 0.3 million customers in southeastern New York and northern New Jersey; and gas to approximately 0.2 million customers in southeastern New York. In addition, it operates 545 circuit miles of transmission lines; 15 transmission substations; 63 distribution substations; 90,051 in-service line transformers; 3,788 pole miles of overhead distribution lines; and 2,314 miles of underground distribution lines, as well as 4,363 miles of mains and 380,870 service lines for natural gas distribution. Further, the company invests in electric and gas transmission projects. It primarily sells electricity to industrial, commercial, residential, and government customers. Consolidated Edison, Inc. was founded in 1823 and is based in New York, New York.