MGE Energy (NASDAQ:MGEE – Get Free Report) and Dominion Energy (NYSE:D – Get Free Report) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.
Earnings & Valuation
This table compares MGE Energy and Dominion Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MGE Energy | $676.94 million | 4.55 | $120.57 million | $3.60 | 23.41 |
| Dominion Energy | $14.46 billion | 3.55 | $2.12 billion | $2.90 | 20.72 |
Volatility and Risk
MGE Energy has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Dominion Energy has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for MGE Energy and Dominion Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MGE Energy | 1 | 1 | 0 | 0 | 1.50 |
| Dominion Energy | 1 | 6 | 1 | 0 | 2.00 |
MGE Energy currently has a consensus target price of $78.50, suggesting a potential downside of 6.84%. Dominion Energy has a consensus target price of $59.57, suggesting a potential downside of 0.86%. Given Dominion Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Dominion Energy is more favorable than MGE Energy.
Profitability
This table compares MGE Energy and Dominion Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MGE Energy | 18.24% | 10.58% | 4.65% |
| Dominion Energy | 16.45% | 9.68% | 2.69% |
Institutional and Insider Ownership
52.6% of MGE Energy shares are held by institutional investors. Comparatively, 73.0% of Dominion Energy shares are held by institutional investors. 0.2% of MGE 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dividends
MGE Energy pays an annual dividend of $1.90 per share and has a dividend yield of 2.3%. Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 4.4%. MGE Energy pays out 52.8% of its earnings in the form of a dividend. Dominion Energy pays out 92.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MGE Energy has raised its dividend for 49 consecutive years.
Summary
MGE Energy beats Dominion Energy on 10 of the 17 factors compared between the two stocks.
About MGE Energy
MGE Energy, Inc., through its subsidiaries, operates as a public utility holding company primarily in the United States. It operates through Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other segments. The company generates, purchases, and distributes electricity and natural gas in Wisconsin and Iowa; owns and leases electric generating capacity; and plans, constructs, operates, maintains, and expands transmission facilities to provide transmission power services. It generates electricity from coal-fired, gas-fired, and renewable energy sources. As of December 31, 2023, the company owned and operated 835 miles of overhead electric distribution lines; 1,330 miles of underground electric distribution cables; 49 substations with an installed capacity of 1.2 million kVA; and gas facilities, including 3,066 miles of distribution mains, as well as supplied electric service to approximately 163,000 customers. MGE Energy, Inc. founded in 2001 and is headquartered in Madison, Wisconsin.
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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