Critical Review: Dominion Energy (NYSE:D) & MDU Resources Group (NYSE:MDU)

Dominion Energy (NYSE:D) and MDU Resources Group (NYSE:MDU) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and target prices for Dominion Energy and MDU Resources Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dominion Energy	1	9	5	0	2.27
MDU Resources Group	0	4	3	0	2.43

Dominion Energy currently has a consensus price target of $69.79, suggesting a potential upside of 9.70%. MDU Resources Group has a consensus price target of $23.40, suggesting a potential upside of 26.13%. Given MDU Resources Group’s stronger consensus rating and higher possible upside, analysts plainly believe MDU Resources Group is more favorable than Dominion Energy.

Dividends

Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 4.2%. MDU Resources Group pays an annual dividend of $0.58 per share and has a dividend yield of 3.1%. 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. MDU Resources Group pays out 61.1% of its earnings in the form of a dividend. MDU Resources Group has raised its dividend for 1 consecutive years.

Earnings and Valuation

This table compares Dominion Energy and MDU Resources Group”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	3.39	$3.00 billion	$2.87	22.17
MDU Resources Group	$1.88 billion	2.03	$190.40 million	$0.95	19.53

Dominion Energy has higher revenue and earnings than MDU Resources Group. MDU Resources Group 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

73.0% of Dominion Energy shares are held by institutional investors. Comparatively, 71.4% of MDU Resources Group shares are held by institutional investors. 0.1% of Dominion Energy shares are held by insiders. Comparatively, 0.5% of MDU Resources Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dominion Energy	13.98%	9.62%	2.64%
MDU Resources Group	10.75%	6.89%	2.58%

Volatility & Risk

Dominion Energy has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, MDU Resources Group has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Summary

Dominion Energy beats MDU Resources Group on 11 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 MDU Resources Group

MDU Resources Group, Inc. engages in the regulated energy delivery, and construction materials and services businesses in the United States. It operates through four segments: Electric, Natural Gas Distribution, Pipeline, and Construction Services. The Electric segment generates, transmits, and distributes electricity for residential, commercial, industrial, and municipal customers in Montana, North Dakota, South Dakota, and Wyoming; and operates 3,400 miles of transmission lines, 4,800 miles of distribution lines, and 82 transmission and 298 distribution substations. The Natural Gas Distribution segment distributes natural gas for residential, commercial, and industrial customers in Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota, Washington, and Wyoming; and supplies related value-added services. The Pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions; and cathodic protection and other energy-related services. The Construction Services segment offers electrical and mechanical contracting services, including the construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, mechanical piping, and services; transmission and distribution contracting services, comprise construction and maintenance of overhead and underground electrical, and gas and communication infrastructure; and manufactures and supplies transmission and distribution lines construction equipment and tools. It serves manufacturing, commercial, industrial, transportation, institutional, and renewable and government customers, as well as utilities. MDU Resources Group, Inc. was incorporated in 1924 and is headquartered in Bismarck, North Dakota.