Dominion Energy (D) & Korea Electric Power (NYSE:KEP) Critical Analysis

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

Analyst Ratings

This is a summary of current recommendations for Korea Electric Power and Dominion Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Korea Electric Power 1 4 2 0 2.14
Dominion Energy 0 10 4 0 2.29

Dominion Energy has a consensus target price of $81.00, indicating a potential upside of 0.90%. Given Dominion Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Dominion Energy is more favorable than Korea Electric Power.

Dividends

Dominion Energy pays an annual dividend of $3.08 per share and has a dividend yield of 3.8%. Korea Electric Power does not pay a dividend. Dominion Energy pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dominion Energy has raised its dividend for 8 consecutive years.

Earnings & Valuation

This table compares Korea Electric Power and Dominion Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Korea Electric Power $51.76 billion 0.44 $6.34 billion $2.16 8.25
Dominion Energy $11.73 billion 4.40 $2.12 billion $3.39 23.68

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

Profitability

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

Net Margins Return on Equity Return on Assets
Korea Electric Power 5.15% 4.19% 1.72%
Dominion Energy 17.21% 13.32% 3.16%

Risk and Volatility

Korea Electric Power has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Dominion Energy has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Institutional & Insider Ownership

4.7% of Korea Electric Power shares are owned by institutional investors. Comparatively, 64.6% of Dominion Energy shares are owned by institutional investors. 1.0% of Korea Electric Power shares are owned by company insiders. Comparatively, 0.4% of Dominion Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Dominion Energy beats Korea Electric Power on 12 of the 17 factors compared between the two stocks.

About Korea Electric Power

Korea Electric Power Corporation (KEPCO) is an integrated electric utility company engaged in the transmission and distribution of electricity in the Republic of Korea. Its segments include transmission and distribution, nuclear power generation and thermal power generation and all others . The transmission and distribution segment, which is operated by KEPCO, comprise operations related to the transmission, distribution and sale to end-users of electricity. The nuclear power generation segment, which is engaged in the nuclear, hydro, pumping-up power generation. The thermal power generation segment, which is engaged in bituminous coal, anthracite, liquefied natural gas (LNG) power generation. And the Other Segment comprises operations related to the plant design, power generation equipment assembly, nuclear raw materials supplement, electricity IT service, renewable source power generation and financial investment on overseas businesses.

About Dominion Energy

Dominion Energy, Inc., formerly Dominion Resources, Inc., is a producer and transporter of energy. Dominion is focused on its investment in regulated electric generation, transmission and distribution and regulated natural gas transmission and distribution infrastructure. It operates through three segments: Dominion Virginia Power operating segment (DVP), Dominion Generation, Dominion Energy, and Corporate and Other. The DVP segment includes regulated electric distribution and regulated electric transmission. The Dominion Generation segment includes regulated electric fleet and merchant electric fleet. The Dominion Energy segment includes gas transmission and storage, gas gathering and processing, liquefied natural gas import and storage, and nonregulated retail energy marketing. As of December 31, 2016, Dominion served utility and retail energy customers, and operated an underground natural gas storage system with approximately one trillion cubic feet of storage capacity.

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