Head-To-Head Analysis: Dominion Energy (NYSE:D) & Iberdrola (OTCMKTS:IBDRY)

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

Dividends

Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 4.4%. Iberdrola pays an annual dividend of $1.80 per share and has a dividend yield of 2.0%. Dominion Energy pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Iberdrola pays out 43.0% of its earnings in the form of a dividend.

Risk and Volatility

Dominion Energy has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Iberdrola has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dominion Energy	18.05%	9.67%	2.70%
Iberdrola	13.74%	10.38%	3.94%

Earnings & Valuation

This table compares Dominion Energy and Iberdrola”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dominion Energy	$16.51 billion	3.24	$3.00 billion	$3.44	17.70
Iberdrola	$51.52 billion	2.89	$7.11 billion	$4.19	21.06

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Dominion Energy and Iberdrola, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dominion Energy	1	8	3	0	2.17
Iberdrola	1	4	2	1	2.38

Dominion Energy presently has a consensus price target of $65.20, indicating a potential upside of 7.08%. Given Dominion Energy’s higher possible upside, equities analysts plainly believe Dominion Energy is more favorable than Iberdrola.

Insider & Institutional Ownership

73.0% of Dominion Energy shares are held by institutional investors. Comparatively, 0.0% of Iberdrola shares are held by institutional investors. 0.1% of Dominion Energy shares are held by company 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.

Summary

Iberdrola beats Dominion Energy on 10 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 Iberdrola

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.