Dominion Energy Inc. (D) vs NextEra Energy, Inc. (NEE)

Dominion Energy Inc. and NextEra Energy, Inc. are both Utilities Regulated Electric companies. NextEra Energy, Inc. is the larger, with a market value of $158.3B against $53.1B — 3.0× the size. NextEra Energy, Inc. trades at the lower P/E: 17.1× against 21.1×. Dominion Energy Inc. grew revenue faster over the last twelve months: 19.0% against 10.8%. NextEra Energy, Inc. has the higher net margin (32.4% vs 14.0%) and the higher return on invested capital (3.05% vs 2.75%). Both pay a dividend; Dominion Energy Inc. yields more (6.04% vs 3.63%). Across the 22 metrics below, NextEra Energy, Inc. leads on 12 and Dominion Energy Inc. on 10.

Valuation

Metric D NEE Utilities Regulated Electric median
P/E 21.14 17.11 18.84
P/S 2.95 5.53 2.52
P/B 1.64 2.33 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 16.19 16.83 11.82
EV/Sales 5.88 9.27 4.58
Earnings yield 4.73% 5.84% 5.30%
Free cash flow yield (12.81%) (10.44%) (5.06%)

Profitability

Metric D NEE Utilities Regulated Electric median
Gross margin 66.84% 81.54% 66.28%
Operating margin 21.06% 29.82% 21.79%
Net margin 13.99% 32.40% 12.94%
Free cash flow margin (37.72%) (57.72%) (11.51%)
Return on equity 8.11% 14.42% 9.75%
Return on assets 2.21% 4.31% 2.75%
Return on invested capital 2.75% 3.05% 3.87%

Growth

Metric D NEE Utilities Regulated Electric median
Revenue growth (TTM) 18.99% 10.81% 7.43%
EPS growth (last fiscal year) 41.39% (2.08%) —
Revenue growth, 5-year CAGR 3.10% 8.78% 6.75%
Net income growth, 5-year CAGR 0.00% 18.55% 6.44%

Health

Metric D NEE Utilities Regulated Electric median
Debt to equity 1.59 1.62 1.53
Current ratio 0.81 0.53 0.81
Net debt to EBITDA 6.86 6.10 5.25

Dividend

Metric D NEE Utilities Regulated Electric median
Dividend yield 6.04% 3.63% 4.33%
Payout ratio 0.99 0.44 0.66

Size

Metric D NEE Utilities Regulated Electric median
Market cap 53.11b 158.26b 22.90b

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