Azure Power Global (NYSE:AZRE) and Dominion Energy (NYSE:D) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of recent ratings for Azure Power Global and Dominion Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Azure Power Global 0 1 4 0 2.80
Dominion Energy 1 5 6 0 2.42

Azure Power Global currently has a consensus target price of $22.00, indicating a potential upside of 90.97%. Dominion Energy has a consensus target price of $85.27, indicating a potential upside of 11.26%. Given Azure Power Global’s stronger consensus rating and higher possible upside, research analysts clearly believe Azure Power Global is more favorable than Dominion Energy.

Risk and Volatility

Azure Power Global has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500. Comparatively, Dominion Energy has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Azure Power Global 0.24% 0.81% 0.15%
Dominion Energy 18.31% 12.85% 3.39%

Valuation & Earnings

This table compares Azure Power Global and Dominion Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Azure Power Global $118.27 million 3.98 -$12.60 million ($0.65) -17.72
Dominion Energy $13.37 billion 4.58 $2.45 billion $4.05 18.92

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

Institutional & Insider Ownership

51.8% of Azure Power Global shares are held by institutional investors. Comparatively, 71.0% of Dominion Energy shares are held by institutional investors. 0.3% 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.

Dividends

Dominion Energy pays an annual dividend of $3.67 per share and has a dividend yield of 4.8%. Azure Power Global does not pay a dividend. Dominion Energy pays out 90.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dominion Energy has raised its dividend for 10 consecutive years.

Summary

Dominion Energy beats Azure Power Global on 13 of the 17 factors compared between the two stocks.

Azure Power Global Company Profile

Azure Power Global Limited, together with its subsidiaries, engages in the development, construction, ownership, operation, maintenance, and management of solar power plants in India. It generates solar energy based on long-term contracts with Indian government energy distribution companies, as well as other non-governmental energy distribution companies and commercial customers. As of March 31, 2018, the company had a portfolio capacity of approximately 1,871 megawatts. Azure Power Global Limited was founded in 2007 and is based in New Delhi, India.

Dominion Energy Company Profile

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.

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