Dominion Energy vs Duke Energy Which Is More Profitable?

Dominion Energy and Duke Energy are two major players in the utility sector, both providing essential services to millions of customers across the United States. Investors looking to add utility stocks to their portfolio may consider comparing Dominion Energy vs Duke Energy stocks. Dominion Energy has a larger market capitalization and a more diverse portfolio of assets, while Duke Energy has a strong presence in the Southeastern United States. Both companies offer stable dividends and are viewed as solid long-term investments in the energy sector.

Dominion Energy or Duke Energy?

When comparing Dominion Energy and Duke Energy, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Dominion Energy and Duke Energy.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Dominion Energy has a dividend yield of 4.94%, while Duke Energy has a dividend yield of 3.8%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Dominion Energy reports a 5-year dividend growth of -4.38% year and a payout ratio of 91.87%. On the other hand, Duke Energy reports a 5-year dividend growth of 2.24% year and a payout ratio of 92.18%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Dominion Energy P/E ratio at 18.66 and Duke Energy's P/E ratio at 19.43. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Dominion Energy P/B ratio is 1.65 while Duke Energy's P/B ratio is 1.71.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Dominion Energy has seen a 5-year revenue growth of -0.12%, while Duke Energy's is 0.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dominion Energy's ROE at 8.89% and Duke Energy's ROE at 8.76%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $53.73 for Dominion Energy and $108.74 for Duke Energy. Over the past year, Dominion Energy's prices ranged from $43.53 to $61.97, with a yearly change of 42.36%. Duke Energy's prices fluctuated between $90.09 and $121.25, with a yearly change of 34.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.