Head-To-Head Survey: Dominion Energy (NYSE:D) versus E.On (OTCMKTS:EONGY)

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

Analyst Recommendations

This is a summary of recent ratings for Dominion Energy and E.On, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dominion Energy	1	8	4	1	2.36
E.On	0	5	3	2	2.70

Dominion Energy presently has a consensus target price of $69.33, suggesting a potential upside of 2.70%. Given Dominion Energy’s higher probable upside, research analysts plainly believe Dominion Energy is more favorable than E.On.

Dividends

Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 4.0%. E.On pays an annual dividend of $0.49 per share and has a dividend yield of 2.3%. Dominion Energy pays out 88.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. E.On pays out 32.7% of its earnings in the form of a dividend.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dominion Energy	$16.51 billion	3.60	$3.00 billion	$3.01	22.43
E.On	$89.03 billion	0.62	$1.96 billion	$1.50	14.14

Dominion Energy has higher earnings, but lower revenue 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dominion Energy	13.99%	10.09%	2.75%
E.On	5.78%	10.71%	2.58%

Volatility and Risk

Dominion Energy has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, E.On has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Institutional & Insider 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Dominion Energy beats E.On on 11 of the 17 factors compared between the two stocks.

About Dominion Energy

Dominion Energy, Inc. (NYSE: D) is an energy company focused primarily on regulated electric and natural gas utility services. Its businesses generate, transmit and distribute electricity and deliver natural gas to residential, commercial and industrial customers. The company’s electric utility operations serve customers in Virginia and northeastern North Carolina, as well as parts of South Carolina through Dominion Energy South Carolina. Its power portfolio includes nuclear, natural gas, solar and other energy sources.

About E.On

E.ON SE is a Germany-based energy company focused primarily on energy networks and customer solutions. The company operates electricity distribution networks and gas networks, helping deliver energy to homes, businesses and other organizations. E.ON also supplies electricity and gas to retail and commercial customers and provides services such as energy management, energy efficiency and electric-vehicle charging. Its operations span several European countries, with a substantial presence in Germany and the United Kingdom.