Dominion Energy Inc. (D) vs Southern Company (The) (SO)

Dominion Energy Inc. and Southern Company (The) are both Utilities Regulated Electric companies. Southern Company (The) is the larger, with a market value of $95.3B against $53.1B — 1.8× the size. Southern Company (The) trades at the lower P/E: 19.9× against 21.1×. Dominion Energy Inc. grew revenue faster over the last twelve months: 19.0% against 6.40%. Southern Company (The) has the higher net margin (15.4% vs 14.0%) and the higher return on invested capital (4.05% vs 2.75%). Both pay a dividend; Dominion Energy Inc. yields more (6.04% vs 4.15%). Across the 22 metrics below, Southern Company (The) leads on 15 and Dominion Energy Inc. on 7.

Valuation

Metric D SO Utilities Regulated Electric median
P/E 21.14 19.88 18.84
P/S 2.95 3.12 2.52
P/B 1.64 2.23 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 16.19 12.07 11.82
EV/Sales 5.88 5.46 4.58
Earnings yield 4.73% 5.03% 5.30%
Free cash flow yield (12.81%) (3.47%) (5.06%)

Profitability

Metric D SO Utilities Regulated Electric median
Gross margin 66.84% 71.88% 66.28%
Operating margin 21.06% 24.21% 21.79%
Net margin 13.99% 15.43% 12.94%
Free cash flow margin (37.72%) (10.83%) (11.51%)
Return on equity 8.11% 11.69% 9.75%
Return on assets 2.21% 3.00% 2.75%
Return on invested capital 2.75% 4.05% 3.87%

Growth

Metric D SO Utilities Regulated Electric median
Revenue growth (TTM) 18.99% 6.40% 7.43%
EPS growth (last fiscal year) 41.39% (1.99%) —
Revenue growth, 5-year CAGR 3.10% 7.72% 6.75%
Net income growth, 5-year CAGR 0.00% 6.84% 6.44%

Health

Metric D SO Utilities Regulated Electric median
Debt to equity 1.59 1.73 1.53
Current ratio 0.81 0.79 0.81
Net debt to EBITDA 6.86 5.27 5.25

Dividend

Metric D SO Utilities Regulated Electric median
Dividend yield 6.04% 4.15% 4.33%
Payout ratio 0.99 0.98 0.66

Size

Metric D SO Utilities Regulated Electric median
Market cap 53.11b 95.28b 22.90b

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