Reviewing Dominion Energy (NYSE:D) & Xcel Energy (NASDAQ:XEL)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dominion Energy	16.17%	9.60%	2.69%
Xcel Energy	14.85%	10.52%	2.92%

Volatility and Risk

Dominion Energy has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Xcel Energy has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Dominion Energy and Xcel Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dominion Energy	1	8	3	0	2.17
Xcel Energy	1	1	13	2	2.94

Dominion Energy presently has a consensus target price of $64.22, suggesting a potential upside of 6.46%. Xcel Energy has a consensus target price of $87.14, suggesting a potential upside of 10.25%. Given Xcel Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Xcel Energy is more favorable than Dominion Energy.

Dividends

Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 4.4%. Xcel Energy pays an annual dividend of $2.28 per share and has a dividend yield of 2.9%. 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. Xcel Energy pays out 69.5% of its earnings in the form of a dividend. Xcel Energy has increased its dividend for 22 consecutive years.

Institutional & Insider Ownership

73.0% of Dominion Energy shares are held by institutional investors. Comparatively, 78.4% of Xcel Energy shares are held by institutional investors. 0.1% of Dominion Energy shares are held by insiders. Comparatively, 0.1% of Xcel Energy shares are held by 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 Dominion Energy and Xcel Energy”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	3.56	$2.12 billion	$2.94	20.52
Xcel Energy	$14.23 billion	3.29	$1.94 billion	$3.28	24.10

Dominion Energy has higher revenue and earnings than Xcel Energy. Dominion Energy is trading at a lower price-to-earnings ratio than Xcel Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Xcel Energy beats Dominion Energy on 11 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 Xcel Energy

Xcel Energy Inc., through its subsidiaries, engages in the generation, purchasing, transmission, distribution, and sale of electricity. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity through wind, nuclear, hydroelectric, biomass, and solar energy sources, as well as coal, natural gas, oil, wood, and refuse-derived fuels. It also purchases, transports, distributes, and sells natural gas to retail customers, as well as transports customer-owned natural gas. In addition, the company develops and leases natural gas pipelines, and storage and compression facilities; and invests in rental housing projects and nonregulated assets, as well as procures equipment for the construction of renewable generation facilities. It serves residential, commercial, and industrial customers in the portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. The company was incorporated in 1909 and is headquartered in Minneapolis, Minnesota.