Dominion Energy (NYSE:D – Get Free Report) and Black Hills (NYSE:BKH – Get Free Report) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Insider and Institutional Ownership
73.0% of Dominion Energy shares are owned by institutional investors. Comparatively, 86.7% of Black Hills shares are owned by institutional investors. 0.1% of Dominion Energy shares are owned by insiders. Comparatively, 0.6% of Black Hills shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Dominion Energy and Black Hills, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dominion Energy | 1 | 8 | 4 | 1 | 2.36 |
| Black Hills | 0 | 1 | 6 | 1 | 3.00 |
Dominion Energy currently has a consensus price target of $69.33, suggesting a potential upside of 1.61%. Black Hills has a consensus price target of $85.00, suggesting a potential downside of 1.61%. Given Dominion Energy’s higher probable upside, equities research analysts plainly believe Dominion Energy is more favorable than Black Hills.
Earnings and Valuation
This table compares Dominion Energy and Black Hills”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dominion Energy | $16.51 billion | 3.64 | $3.00 billion | $3.01 | 22.67 |
| Black Hills | $2.31 billion | 2.85 | $291.60 million | $4.16 | 20.77 |
Dominion Energy has higher revenue and earnings than Black Hills. Black Hills is trading at a lower price-to-earnings ratio than Dominion Energy, indicating that it is currently the more affordable of the two stocks.
Dividends
Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 3.9%. Black Hills pays an annual dividend of $2.81 per share and has a dividend yield of 3.3%. Dominion Energy pays out 88.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Black Hills pays out 67.5% of its earnings in the form of a dividend. Black Hills has raised its dividend for 55 consecutive years.
Profitability
This table compares Dominion Energy and Black Hills’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dominion Energy | 13.99% | 10.09% | 2.75% |
| Black Hills | 13.49% | 8.19% | 2.99% |
Volatility & Risk
Dominion Energy has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Black Hills has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.
Summary
Black Hills beats Dominion Energy on 10 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 Black Hills
Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States. The company operates in two segments: Electric Utilities and Gas Utilities. The Electric Utilities segment generates, transmits, and distributes electricity to approximately 222,000 electric utility customers in Colorado, Montana, South Dakota, and Wyoming; and owns and operates 1,394 megawatts of generation capacity and 9,106 miles of electric transmission and distribution lines. The Gas Utilities segment distributes natural gas to approximately 1,116,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming; owns and operates 4,663 miles of intrastate gas transmission pipelines; 42,514 miles of gas distribution mains and service lines; seven natural gas storage sites; and approximately 50,000 horsepower of compression and 516 miles of gathering lines. It also constructs and maintains customer owned gas infrastructure facilities for gas transportation customers; and provides appliance repair services to residential utility customers, as well as electrical system construction services to large industrial customers. In addition, the company produces electric power through wind, natural gas, and coal-fired generating plants; and coal at its coal mine located near Gillette, Wyoming. Black Hills Corporation was incorporated in 1941 and is headquartered in Rapid City, South Dakota.
Receive News & Ratings for Dominion Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dominion Energy and related companies with MarketBeat.com's FREE daily email newsletter.
