Contrasting Dominion Energy (NYSE:D) and E.On (OTCMKTS:EONGY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
E.On	4.49%	11.35%	2.69%
Dominion Energy	13.98%	9.62%	2.64%

Insider and Institutional Ownership

73.0% of Dominion Energy shares are owned by institutional investors. 0.1% of Dominion Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares E.On and Dominion Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
E.On	$89.03 billion	0.56	$1.96 billion	$1.50	12.75
Dominion Energy	$18.12 billion	2.94	$3.00 billion	$2.87	21.13

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

Risk and Volatility

E.On has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Dominion Energy has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Dividends

E.On pays an annual dividend of $0.49 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 4.4%. E.On pays out 32.7% of its earnings in the form of a dividend. 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.

Analyst Ratings

This is a summary of current ratings and price targets for E.On and Dominion Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
E.On	0	5	3	1	2.56
Dominion Energy	1	9	4	1	2.33

Dominion Energy has a consensus target price of $69.79, indicating a potential upside of 15.10%. Given Dominion Energy’s higher probable upside, analysts plainly believe Dominion Energy is more favorable than E.On.

Summary

Dominion Energy beats E.On on 10 of the 16 factors compared between the two stocks.

About E.On

E.ON SE operates as an energy company in Germany, the United Kingdom, Sweden, the Netherlands, rest of Europe, and internationally. It operates through two segments, Energy Networks and Customer Solutions. The Energy Networks segment operates power and gas distribution networks, as well as provides maintenance, repairs, and related services. The Customer Solutions segment supplies power, gas, and heat, as well as with products and services that enhance energy efficiency to residential, small and medium-sized enterprises, large commercial and industrial, sales partners, and public entities. Additionally, it provides SmartSim, a software solution that allows renewable gases to be fed into gas grids; gas quality tracking solutions; GasPro, a mobile gas sample collector; metering solutions; and GasCalc, a software that calculates natural gases, LNG, and biogases properties. The company was founded in 1923 and is headquartered in Essen, Germany.

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.