Dominion Energy, Inc. (D) and FirstEnergy Corp. (FE) are two major players in the regulated electric utilities sector, both serving millions of customers across multiple U.S. states. Their focus on electricity generation, transmission, and distribution places them in direct market competition, with each company pursuing distinct innovation strategies in energy production and infrastructure. This article will help you decide which company presents the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Dominion Energy, Inc. and FirstEnergy Corp. by providing an overview of these two companies and their main differences.
Dominion Energy Overview
Dominion Energy, Inc. is a US-based utility company focused on producing and distributing energy through regulated electric and gas operations. It serves approximately 6.9M customers across Virginia, North Carolina, South Carolina, and several other states. The company operates a diversified portfolio including electric generation, transmission, distribution, and natural gas services, with a significant presence in renewable energy and infrastructure assets.
FirstEnergy Overview
FirstEnergy Corp. is a utility company headquartered in Ohio, engaged in generating, transmitting, and distributing electricity across six states. It serves about 6M customers primarily in the eastern US through its regulated distribution and transmission segments. The company operates a mix of coal, nuclear, hydroelectric, natural gas, wind, and solar power facilities, supported by an extensive network of transmission and distribution lines.
Key similarities and differences
Both Dominion Energy and FirstEnergy operate in the regulated electric utilities sector, serving millions of customers via energy generation, transmission, and distribution. Dominion has a broader geographic footprint and a larger workforce, with a stronger emphasis on natural gas distribution and renewable energy assets. FirstEnergy operates a more diversified generation mix with a notable presence in coal and nuclear power, primarily focused on the Mid-Atlantic and Northeast regions.
Income Statement Comparison
The table below compares key income statement metrics for Dominion Energy, Inc. and FirstEnergy Corp. for the fiscal year 2024, highlighting their financial performance.
| Metric | Dominion Energy, Inc. | FirstEnergy Corp. |
|---|---|---|
| Market Cap | 49.5B | 25.8B |
| Revenue | 14.5B | 13.5B |
| EBITDA | 6.7B | 4.1B |
| EBIT | 4.1B | 2.5B |
| Net Income | 2.1B | 978M |
| EPS | 2.44 | 1.7 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Dominion Energy, Inc.
Dominion Energy’s revenue showed modest growth over 2020-2024, reaching $14.46B in 2024, with net income rising significantly to $2.12B, reflecting a 629.68% increase overall. Gross and EBIT margins remained favorable at 47.87% and 28.14%, respectively. However, 2024 saw a slight slowdown in revenue growth (0.46%), while EBIT and net margin improved, signaling enhanced profitability despite higher interest expenses.
FirstEnergy Corp.
FirstEnergy’s revenue increased steadily, reaching $13.47B in 2024, with a 24.86% growth over the period. Net income, however, declined by 9.36% overall, totaling $978M in 2024. Gross margin was strong at 67.52%, but EBIT margin was lower at 18.67%. The latest year showed revenue growth at 4.68%, yet net margin and EPS contracted, indicating margin pressure and less favorable profitability dynamics.
Which one has the stronger fundamentals?
Dominion Energy exhibits stronger fundamentals based on its significant net income growth, favorable gross and EBIT margins, and improved profitability metrics in 2024 despite slower revenue growth. In contrast, FirstEnergy posted higher revenue growth but suffered net income and margin declines, with less consistent earnings performance. Dominion’s overall income statement evaluation is favorable, while FirstEnergy’s is unfavorable.
Financial Ratios Comparison
Below is a side-by-side comparison of key financial ratios for Dominion Energy, Inc. (D) and FirstEnergy Corp. (FE) based on their most recent fiscal year 2024 data.
| Ratios | Dominion Energy, Inc. (D) | FirstEnergy Corp. (FE) |
|---|---|---|
| ROE | 7.79% | 7.85% |
| ROIC | 2.86% | 3.66% |
| P/E | 21.3 | 23.4 |
| P/B | 1.66 | 1.84 |
| Current Ratio | 0.71 | 0.56 |
| Quick Ratio | 0.52 | 0.45 |
| D/E | 1.53 | 1.95 |
| Debt-to-Assets | 40.8% | 46.6% |
| Interest Coverage | 1.72 | 2.35 |
| Asset Turnover | 0.14 | 0.26 |
| Fixed Asset Turnover | 0.21 | 0.33 |
| Payout ratio | 105.4% | 99.2% |
| Dividend yield | 4.95% | 4.24% |
Interpretation of the Ratios
Dominion Energy, Inc.
Dominion Energy shows a mixed ratio profile with a favorable net margin of 14.69% and dividend yield of 4.95%, but suffers from weak returns on equity (7.79%) and invested capital (2.86%). Liquidity is a concern given a low current ratio of 0.71 and a high debt-to-equity of 1.53. The company maintains steady dividends, supported by a manageable payout ratio, though coverage by free cash flow appears limited.
FirstEnergy Corp.
FirstEnergy’s ratios reveal moderate profitability with a net margin of 7.26% and a dividend yield of 4.24%. However, returns on equity (7.85%) and invested capital (3.66%) are also weak. Liquidity ratios are low (current ratio 0.56), and leverage is relatively high with a debt-to-equity ratio of 1.95. Dividend payments continue despite free cash flow challenges, reflecting a commitment to shareholder returns amid financial constraints.
Which one has the best ratios?
Both companies face similar challenges, including weak returns and liquidity concerns, with 50% of their ratios rated unfavorable. Dominion Energy has a slightly better net margin and dividend yield, while FirstEnergy shows marginally higher returns on capital. Overall, both have slightly unfavorable ratio profiles, with neither clearly outperforming the other across key metrics.
Strategic Positioning
This section compares the strategic positioning of Dominion Energy, Inc. and FirstEnergy Corp. regarding Market position, Key segments, and exposure to disruption:
Dominion Energy, Inc.
- Market leader with 49.5B market cap, serving multiple states with regulated electric and gas segments.
- Diverse segments including Virginia and South Carolina electricity, gas distribution, and contracted renewable energy.
- Operates significant renewable contracted assets and LNG facilities, indicating moderate exposure to clean energy disruption.
FirstEnergy Corp.
- Smaller 25.8B market cap, serving about 6M customers in mid-Atlantic and Midwest regions.
- Focus on regulated distribution and transmission, with coal, nuclear, hydro, gas, wind, and solar generation.
- Owns diverse generation mix but limited explicit renewable contracted assets, moderate exposure to energy transition risks.
Dominion Energy, Inc. vs FirstEnergy Corp. Positioning
Dominion Energy operates a more diversified business with regulated electric, gas, and renewable contracted assets, providing multiple revenue drivers. FirstEnergy concentrates on regulated distribution and transmission with a mixed generation portfolio, including coal and nuclear, which may affect future regulatory and market risks.
Which has the best competitive advantage?
Both companies are currently shedding value with ROIC below WACC, but Dominion Energy shows a growing ROIC trend, suggesting improving profitability. FirstEnergy has a declining ROIC trend, indicating worsening value creation and weaker competitive advantage.
Stock Comparison
The stock price movements of Dominion Energy, Inc. and FirstEnergy Corp. over the past year reveal notable bullish trends with decelerating momentum and distinct trading volume behaviors.
Trend Analysis
Dominion Energy, Inc. experienced a 26.43% price increase over the last 12 months, indicating a bullish trend with deceleration. The stock ranged from a low of 44.79 to a high of 62.77, with volatility measured at 4.03%.
FirstEnergy Corp. showed a 19.42% price increase over the same period, also reflecting a bullish trend with deceleration. Its price fluctuated between 36.5 and 47.72, accompanied by a lower volatility of 2.64%.
Comparing both stocks, Dominion Energy delivered the highest market performance with a stronger percentage gain and greater volatility than FirstEnergy over the past year.
Target Prices
Analysts present a moderate bullish consensus for Dominion Energy, Inc. and FirstEnergy Corp.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Dominion Energy, Inc. | 70 | 63 | 66 |
| FirstEnergy Corp. | 54 | 46 | 49.29 |
The target consensus for Dominion Energy suggests a potential upside from its current price of $57.98, while FirstEnergy’s consensus target also indicates room for growth above its current price of $44.65. Analysts generally expect moderate appreciation for both stocks.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Dominion Energy, Inc. (D) and FirstEnergy Corp. (FE):
Rating Comparison
D Rating
- Rating: C+ with a very favorable status
- Discounted Cash Flow Score: 4, favorable
- ROE Score: 3, moderate
- ROA Score: 1, very unfavorable
- Debt To Equity Score: 3, moderate
- Overall Score: 2, moderate
FE Rating
- Rating: B with a very favorable status
- Discounted Cash Flow Score: 4, favorable
- ROE Score: 4, favorable
- ROA Score: 3, moderate
- Debt To Equity Score: 1, very unfavorable
- Overall Score: 3, moderate
Which one is the best rated?
Based strictly on the data, FE holds a higher overall rating (B) and scores better in ROE and ROA. D has a lower overall rating (C+) but a better debt-to-equity score, indicating different financial strengths.
Scores Comparison
The comparison of Dominion Energy, Inc. and FirstEnergy Corp. scores is as follows:
Dominion Energy, Inc. Scores
- Altman Z-Score: Unavailable
- Piotroski Score: 7, classified as strong
FirstEnergy Corp. Scores
- Altman Z-Score: 0.78, in distress zone, high bankruptcy risk
- Piotroski Score: 6, classified as average
Which company has the best scores?
Dominion Energy, Inc. has a stronger Piotroski Score of 7 compared to FirstEnergy’s 6, indicating better financial strength. FirstEnergy’s Altman Z-Score signals distress, while Dominion’s Altman Z-Score is unavailable.
Grades Comparison
Here is a detailed comparison of the recent grades assigned to Dominion Energy, Inc. and FirstEnergy Corp.:
Dominion Energy, Inc. Grades
The following table summarizes recent grades for Dominion Energy from reputable financial institutions.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Overweight | 2025-12-17 |
| JP Morgan | Maintain | Underweight | 2025-12-11 |
| BMO Capital | Maintain | Market Perform | 2025-11-03 |
| Morgan Stanley | Maintain | Equal Weight | 2025-10-22 |
| Barclays | Maintain | Overweight | 2025-10-07 |
| Morgan Stanley | Maintain | Equal Weight | 2025-09-25 |
| JP Morgan | Maintain | Underweight | 2025-08-21 |
| JP Morgan | Maintain | Underweight | 2025-07-15 |
| Morgan Stanley | Maintain | Equal Weight | 2025-06-18 |
| Morgan Stanley | Maintain | Equal Weight | 2025-05-22 |
Overall, Dominion Energy’s grades show a mix of “Overweight,” “Equal Weight,” and “Underweight,” with most institutions maintaining their previous ratings consistently.
FirstEnergy Corp. Grades
Below is a summary of recent grades for FirstEnergy from recognized grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Neutral | 2025-12-17 |
| Mizuho | Maintain | Neutral | 2025-10-24 |
| Scotiabank | Maintain | Sector Outperform | 2025-10-24 |
| UBS | Maintain | Neutral | 2025-10-24 |
| Morgan Stanley | Maintain | Overweight | 2025-10-21 |
| Jefferies | Maintain | Hold | 2025-10-21 |
| Keybanc | Downgrade | Sector Weight | 2025-10-15 |
| Scotiabank | Maintain | Sector Outperform | 2025-10-06 |
| Morgan Stanley | Maintain | Overweight | 2025-09-25 |
| Barclays | Upgrade | Overweight | 2025-08-25 |
FirstEnergy’s grades mostly range from “Neutral” to “Overweight” with some “Sector Outperform” ratings, reflecting a generally positive but mixed assessment.
Which company has the best grades?
Both Dominion Energy and FirstEnergy have predominantly “Hold” consensus ratings. FirstEnergy shows a slightly stronger trend with multiple “Overweight” and “Sector Outperform” grades, indicating marginally higher analyst confidence. Investors may interpret these grades as a signal of relative strength or stability in FirstEnergy compared to Dominion Energy.
Strengths and Weaknesses
Below is a comparison table highlighting the key strengths and weaknesses of Dominion Energy, Inc. (D) and FirstEnergy Corp. (FE) based on their latest financial and operational data.
| Criterion | Dominion Energy, Inc. (D) | FirstEnergy Corp. (FE) |
|---|---|---|
| Diversification | Moderate diversification with segments in Virginia, South Carolina, and contracted energy totaling approx. $15B revenue | Focused on regulated distribution & transmission primarily, approx. $8.5B revenue in 2024 |
| Profitability | Net margin 14.69% (favorable); ROIC 2.86% (unfavorable); growing ROIC trend but still shedding value | Net margin 7.26% (neutral); ROIC 3.66% (unfavorable); declining ROIC trend, shedding value |
| Innovation | Limited data on innovation; steady growth in ROIC suggests operational improvements | Limited innovation signals; declining ROIC indicates challenges in profitability improvements |
| Global presence | Mainly US-based with strong regional presence in Virginia and South Carolina | US-focused with regulated energy operations in several states, no global footprint |
| Market Share | Strong market presence in Virginia energy sector with $10.2B revenue segment | Concentrated market share in regulated distribution, $6.8B segment in 2024 |
Key takeaways: Dominion Energy shows modest diversification and improving profitability trends despite currently destroying value. FirstEnergy has a narrower focus with declining profitability and value destruction, suggesting higher risk. Investors should weigh Dominion’s growth potential against FirstEnergy’s challenges.
Risk Analysis
Below is a comparative summary of key risks for Dominion Energy, Inc. (D) and FirstEnergy Corp. (FE) as of 2024.
| Metric | Dominion Energy, Inc. (D) | FirstEnergy Corp. (FE) |
|---|---|---|
| Market Risk | Moderate (Beta 0.70) | Moderate (Beta 0.63) |
| Debt level | High (D/E 1.53, Neutral debt/assets 40.8%) | Very High (D/E 1.95, Neutral debt/assets 46.6%) |
| Regulatory Risk | Significant in multiple states, energy sector sensitive | Significant, operates in several regulated markets |
| Operational Risk | Complex asset base with extensive infrastructure | Diverse generation mix, operational complexity |
| Environmental Risk | Exposure to fossil fuel transition risk, renewable investments | Coal and nuclear exposure, ongoing transition challenges |
| Geopolitical Risk | Low to moderate, primarily US-focused | Low to moderate, primarily US-focused |
Dominion Energy faces moderate market risk with a beta of 0.70 and a high but manageable debt level. FirstEnergy has a slightly lower market risk but carries very high leverage, increasing financial vulnerability. Both companies are subject to significant regulatory scrutiny in their multi-state operations. Environmental transition risks are considerable, with FirstEnergy more exposed to coal and nuclear plant challenges. Notably, FirstEnergy’s Altman Z-score signals distress, indicating higher bankruptcy risk, while Dominion’s financial health is stronger but with some operational inefficiencies. Investors should weigh these risks carefully, focusing on debt management and regulatory developments.
Which Stock to Choose?
Dominion Energy, Inc. (D) shows a mixed income evolution with favorable net and EBIT margins but weak revenue growth recently. Its financial ratios reveal a slightly unfavorable profile, marked by low liquidity and asset turnover, while profitability is moderate. The company carries significant debt and holds a very favorable C+ rating.
FirstEnergy Corp. (FE) demonstrates stronger revenue growth and a high gross margin, though net margin growth is negative. Its ratios are also slightly unfavorable, with low liquidity and high debt-to-equity, yet profitability metrics are somewhat better. FE holds a very favorable B rating despite being in the distress zone for bankruptcy risk.
For investors, Dominion’s favorable income statement and stable rating might appeal more to those seeking steady profitability, while FirstEnergy’s higher growth but declining value creation could attract risk-tolerant profiles focused on potential turnaround opportunities. Ultimately, the choice could depend on individual risk tolerance and investment strategy.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Dominion Energy, Inc. and FirstEnergy Corp. to enhance your investment decisions:
