Analyzing PPL (NYSE:PPL) and Dominion Energy (NYSE:D)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PPL	$9.04 billion	2.91	$1.18 billion	$1.64	21.29
Dominion Energy	$16.51 billion	3.29	$3.00 billion	$3.38	18.29

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

Dividends

PPL pays an annual dividend of $1.14 per share and has a dividend yield of 3.3%. Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 4.3%. PPL pays out 69.5% of its earnings in the form of a dividend. Dominion Energy pays out 79.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PPL has increased its dividend for 3 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PPL	13.09%	9.41%	3.10%
Dominion Energy	16.93%	9.63%	2.67%

Volatility & Risk

PPL has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Dominion Energy has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Institutional and Insider Ownership

77.0% of PPL shares are held by institutional investors. Comparatively, 73.0% of Dominion Energy shares are held by institutional investors. 0.3% of PPL shares are held by insiders. Comparatively, 0.1% of Dominion Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for PPL and Dominion Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPL	0	3	9	1	2.85
Dominion Energy	1	11	3	0	2.13

PPL presently has a consensus price target of $41.83, suggesting a potential upside of 19.81%. Dominion Energy has a consensus price target of $66.31, suggesting a potential upside of 7.25%. Given PPL’s stronger consensus rating and higher probable upside, equities analysts plainly believe PPL is more favorable than Dominion Energy.

Summary

PPL beats Dominion Energy on 10 of the 18 factors compared between the two stocks.

About PPL

PPL Corporation, an energy company, focuses on providing electricity and natural gas to approximately 3.6 million customers in the United States. It operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.

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.