Dominion Energy (NYSE:D) and Edison International (NYSE:EIX) are both large-cap utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
This table compares Dominion Energy and Edison International’s net margins, return on equity and return on assets.
This is a breakdown of recent recommendations and price targets for Dominion Energy and Edison International, as reported by MarketBeat.
Dominion Energy presently has a consensus price target of $85.00, suggesting a potential upside of 15.87%. Edison International has a consensus price target of $72.67, suggesting a potential upside of 3.15%. Given Dominion Energy’s higher probable upside, equities analysts plainly believe Dominion Energy is more favorable than Edison International.
Dominion Energy pays an annual dividend of $3.34 per share and has a dividend yield of 4.6%. Edison International pays an annual dividend of $2.42 per share and has a dividend yield of 3.4%. Dominion Energy pays out 92.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Edison International pays out 53.8% of its earnings in the form of a dividend. Dominion Energy has increased its dividend for 9 consecutive years and Edison International has increased its dividend for 13 consecutive years.
Institutional and Insider Ownership
67.3% of Dominion Energy shares are owned by institutional investors. Comparatively, 81.8% of Edison International shares are owned by institutional investors. 0.3% of Dominion Energy shares are owned by company insiders. Comparatively, 0.4% of Edison International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Dominion Energy has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, Edison International has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.
Earnings and Valuation
This table compares Dominion Energy and Edison International’s top-line revenue, earnings per share and valuation.
Dominion Energy has higher revenue and earnings than Edison International. Edison International is trading at a lower price-to-earnings ratio than Dominion Energy, indicating that it is currently the more affordable of the two stocks.
Dominion Energy beats Edison International on 10 of the 17 factors compared between the two stocks.
About Dominion Energy
Dominion Energy, Inc. produces and transports energy in the United States. The company's Power Delivery segment engages in the regulated electric transmission and distribution operations that serve residential, commercial, industrial, and governmental customers in Virginia and North Carolina. Its Power Generation segment is involved in the electricity generation activities through gas, coal, nuclear, oil, renewables, biomass, hydro, solar, and power purchase agreements; and related energy supply operations. It also comprises generation operations of the company's merchant fleet and energy marketing, and price risk management activities for its assets. The company's Gas Infrastructure segment engages in the regulated natural gas distribution, gas transmission pipeline and storage, liquefied natural gas, and nonregulated retail natural gas marketing operations, as well as natural gas gathering and processing activities. This segment serves residential, commercial, and industrial customers. As of December 31, 2017, the company's portfolio of assets included approximately 26,000 megawatts of generating capacity; 6,600 miles of electric transmission lines; 57,900 miles of electric distribution lines; 14,800 miles of natural gas transmission, gathering, and storage pipelines; and 51,800 miles of gas distribution pipelines. It served approximately 6 million utility and retail energy customers; and operated underground natural gas storage systems with approximately 1 trillion cubic feet of storage capacity. In addition, Dominion Energy, Inc. sells electricity at wholesale prices to rural electric cooperatives, municipalities, and 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 founded in 1909 and is headquartered in Richmond, Virginia.
About Edison International
Edison International, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in the United States. It generates electricity through hydroelectric, diesel/liquid petroleum gas, natural gas, nuclear, and photovoltaic sources. The company supplies electricity primarily to residential, commercial, industrial, agricultural, and other customers, as well as public authorities through transmission and distribution networks. Its transmission facilities consist of lines ranging from 33 kV to 500 kV and substations; and distribution system comprises approximately 53,000 line miles of overhead lines, 38,000 line miles of underground lines, and 800 substations located in California. The company serves approximately 5 million customers. Edison International was founded in 1886 and is based in Rosemead, California.