Dominion Energy, Inc. and Pacific Gas & Electric Co. are two prominent players in the regulated electric utility sector, each serving millions with electricity and natural gas across distinct U.S. regions. Both companies emphasize innovation and renewable energy integration, making them intriguing candidates for comparison. This article will analyze their market positions, strategies, and growth prospects to help you decide which utility stock might best fit your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between Dominion Energy and Pacific Gas & Electric by providing an overview of these two companies and their main differences.
Dominion Energy Overview
Dominion Energy, Inc. focuses on producing and distributing energy within the United States, operating through four main segments including regulated electricity and natural gas distribution. The company serves millions of customers across Virginia, the Carolinas, and several western states, with a substantial portfolio of electric generating capacity and extensive transmission and distribution networks. Headquartered in Richmond, Virginia, Dominion positions itself as a diversified utility with both regulated and nonregulated renewable energy operations.
Pacific Gas & Electric Overview
Pacific Gas & Electric Co. generates, transmits, and distributes electricity and natural gas primarily in northern and central California. The company utilizes a mix of nuclear, hydroelectric, fossil fuel, and photovoltaic energy sources and invests in smart grid technology to enhance customer service. Operating as a subsidiary of PG&E Corporation and headquartered in Oakland, California, PG&E serves a broad customer base including residential, commercial, and agricultural sectors, emphasizing innovation in energy delivery.
Key similarities and differences
Both Dominion Energy and Pacific Gas & Electric operate in the regulated electric utility industry, serving millions of customers with electricity and natural gas. While Dominion Energy has a wider geographic footprint including multiple states and a focus on renewable gas and solar generation, PG&E concentrates on California with a notable integration of smart grid technologies. Dominion’s business includes nonregulated contracted assets, whereas PG&E emphasizes diverse power generation sources including nuclear and hydroelectric.
Income Statement Comparison
The table below compares key income statement metrics for Dominion Energy, Inc. and Pacific Gas & Electric Co. for the fiscal year 2024, providing a clear snapshot of their recent financial performance.
| Metric | Dominion Energy, Inc. (D) | Pacific Gas & Electric Co. (PCG) |
|---|---|---|
| Market Cap | 49.5B | 34.8B |
| Revenue | 14.5B | 24.4B |
| EBITDA | 6.7B | 9.9B |
| EBIT | 4.1B | 5.4B |
| Net Income | 2.1B | 2.5B |
| EPS | 2.44 | 1.16 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Dominion Energy, Inc.
Dominion Energy’s revenue showed a slight increase to $14.46B in 2024, reflecting a 0.46% growth from 2023. Net income reached $2.12B, marking strong overall growth of 630% over five years. Margins improved with a favorable gross margin of 47.87% and net margin of 14.69%. In 2024, EBIT grew 10.15%, signaling improved profitability despite a modest revenue rise.
Pacific Gas & Electric Co.
Pacific Gas & Electric’s revenue remained nearly flat at $24.42B in 2024, a minor decline of 0.04% from 2023. Net income rose to $2.51B, showing a 293% increase over the period. Gross margin improved sharply to 37.5%, and net margin reached 10.29%. EBIT surged 51.11% in 2024, indicating enhanced operational efficiency despite stable revenue.
Which one has the stronger fundamentals?
Both companies exhibit favorable income statement fundamentals with improving margins and net income growth. Dominion Energy has higher margins and a more substantial net income growth rate, while Pacific Gas & Electric shows stronger revenue growth and a more pronounced EBIT increase in the latest year. Interest expense remains an unfavorable factor for both, suggesting cautious evaluation of debt impacts.
Financial Ratios Comparison
Below is a comparison of key financial ratios for Dominion Energy, Inc. (D) and Pacific Gas & Electric Co. (PCG) based on their most recent fiscal year 2024 data.
| Ratios | Dominion Energy, Inc. (D) | Pacific Gas & Electric Co. (PCG) |
|---|---|---|
| ROE | 7.79% | 8.33% |
| ROIC | 2.86% | 3.98% |
| P/E | 21.28 | 17.20 |
| P/B | 1.66 | 1.43 |
| Current Ratio | 0.71 | 1.05 |
| Quick Ratio | 0.52 | 1.00 |
| D/E (Debt-to-Equity) | 1.53 | 1.94 |
| Debt-to-Assets | 40.8% | 43.7% |
| Interest Coverage | 1.72 | 1.46 |
| Asset Turnover | 0.14 | 0.18 |
| Fixed Asset Turnover | 0.21 | 0.28 |
| Payout Ratio | 105.4% | 3.42% |
| Dividend Yield | 4.95% | 0.20% |
Interpretation of the Ratios
Dominion Energy, Inc.
Dominion Energy shows a mix of ratio results with a favorable net margin of 14.69% but weaker returns on equity (7.79%) and invested capital (2.86%). Liquidity ratios like current and quick ratios are below 1, indicating potential short-term stress. The dividend yield is attractive at 4.95%, supported by a stable payout, though some leverage concerns exist given a debt-to-equity of 1.53.
Pacific Gas & Electric Co.
Pacific Gas & Electric posts a solid net margin of 10.29% and favorable price-to-book and quick ratios, suggesting better liquidity than its peer. However, returns on equity (8.33%) and invested capital (3.98%) remain below ideal. The dividend yield is low at 0.2%, reflecting minimal payouts amid elevated debt levels (debt-to-equity 1.94) and moderate interest coverage.
Which one has the best ratios?
Both companies exhibit slightly unfavorable overall ratio profiles with 50% unfavorable metrics each. Dominion Energy offers a higher dividend yield but weaker liquidity, while Pacific Gas & Electric shows stronger liquidity and valuation ratios but pays a much lower dividend. Neither company distinctly outperforms across key financial metrics in 2024.
Strategic Positioning
This section compares the strategic positioning of Dominion Energy, Inc. and Pacific Gas & Electric Co., focusing on market position, key segments, and exposure to technological disruption:
Dominion Energy, Inc.
- Large regulated electric utility with significant market share in Virginia, North Carolina, and South Carolina; faces moderate competition.
- Key segments include regulated electricity in Virginia and South Carolina, gas distribution across multiple states, and contracted renewable energy assets.
- Moderate exposure through development of renewable energy and gas infrastructure; limited mention of advanced technological innovation integration.
Pacific Gas & Electric Co.
- Major regulated electric utility serving northern and central California; operates in a highly regulated and competitive market.
- Key segments are electricity generation from diverse sources and regulated natural gas distribution to residential and industrial customers.
- Exposure through diverse energy generation including nuclear and photovoltaic; developing smart grid technologies like personal microgrid backup.
Dominion Energy, Inc. vs Pacific Gas & Electric Co. Positioning
Dominion Energy pursues a diversified regional approach across multiple states and energy types, while Pacific Gas & Electric focuses on a concentrated California market with a broad mix of generation technologies. Dominion’s varied segments provide multiple business drivers, whereas Pacific Gas & Electric emphasizes technological integration and smart grid development.
Which has the best competitive advantage?
Both companies show slightly unfavorable MOAT evaluations with growing ROIC but currently shedding value. Dominion Energy’s broader geographic and segment diversification contrasts with Pacific Gas & Electric’s technological initiatives, but neither demonstrates a clearly superior competitive advantage based on current MOAT data.
Stock Comparison
The stock price movements of Dominion Energy, Inc. and Pacific Gas & Electric Co. over the past 12 months reveal contrasting trends, with Dominion showing significant gains while Pacific Gas & Electric experienced a decline, both exhibiting decelerating momentum.
Trend Analysis
Dominion Energy, Inc. posted a bullish trend over the past year with a 26.43% price increase, despite recent deceleration and a short-term 5.04% decline. Volatility was moderate with a 4.03 standard deviation.
Pacific Gas & Electric Co. displayed a bearish trend with a 3.53% price decrease over the year and a continuing mild decline recently by 3.35%. Price volatility remained relatively low at a 1.93 standard deviation.
Dominion Energy’s stock outperformed Pacific Gas & Electric’s, delivering a significantly higher market return during the analyzed 12-month period.
Target Prices
The current analyst consensus presents a moderately positive outlook for Dominion Energy, Inc. and Pacific Gas & Electric Co.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Dominion Energy, Inc. | 70 | 63 | 66 |
| Pacific Gas & Electric Co. | 25 | 18 | 21.5 |
Analysts expect Dominion Energy’s stock to rise from its current price of $57.98 toward a consensus target of $66, indicating upside potential. Similarly, Pacific Gas & Electric’s consensus target price of $21.5 suggests a strong potential increase from the current price of $15.85.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for Dominion Energy, Inc. (D) and Pacific Gas & Electric Co. (PCG):
Rating Comparison
D Rating
- Rating: C+ with a “Very Favorable” status
- Discounted Cash Flow Score: 4, considered “Favorable”
- ROE Score: 3, rated as “Moderate”
- ROA Score: 1, rated “Very Unfavorable”
- Debt To Equity Score: 3, rated “Moderate”
- Overall Score: 2, rated “Moderate”
PCG Rating
- Rating: B- with a “Very Favorable” status
- Discounted Cash Flow Score: 1, considered “Very Unfavorable”
- ROE Score: 3, rated as “Moderate”
- ROA Score: 3, rated as “Moderate”
- Debt To Equity Score: 1, rated “Very Unfavorable”
- Overall Score: 3, rated “Moderate”
Which one is the best rated?
PCG holds a higher overall rating (B-) and overall score (3) compared to D’s C+ rating and score of 2. Despite D’s stronger discounted cash flow and debt-to-equity scores, PCG outperforms in return on assets and maintains a better overall rating.
Scores Comparison
Here is a comparison of the financial scores for Dominion Energy, Inc. and Pacific Gas & Electric Co.:
Dominion Energy, Inc. Scores
- Altman Z-Score: Unavailable, no data provided
- Piotroski Score: 7, indicating strong financial health
Pacific Gas & Electric Co. Scores
- Altman Z-Score: 0.48, indicating company is in distress zone
- Piotroski Score: 5, indicating average financial strength
Which company has the best scores?
Dominion Energy, Inc. shows a stronger Piotroski Score (7) compared to Pacific Gas & Electric Co. (5). However, Dominion lacks an Altman Z-Score, while Pacific Gas & Electric has a low Altman Z-Score, signaling financial distress.
Grades Comparison
The following is a detailed comparison of recent grades for Dominion Energy, Inc. and Pacific Gas & Electric Co.:
Dominion Energy, Inc. Grades
This table summarizes the latest grades and actions by major financial institutions for Dominion Energy, Inc.:
| 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 |
Dominion Energy’s grades are mixed, with repeated maintenance of “Underweight,” “Equal Weight,” and “Overweight” ratings, reflecting a cautious to neutral stance.
Pacific Gas & Electric Co. Grades
This table summarizes the latest grades and actions by major financial institutions for Pacific Gas & Electric Co.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Overweight | 2025-12-12 |
| UBS | Maintain | Neutral | 2025-10-24 |
| Jefferies | Maintain | Buy | 2025-10-22 |
| BMO Capital | Maintain | Outperform | 2025-10-14 |
| Jefferies | Maintain | Buy | 2025-10-03 |
| Barclays | Maintain | Overweight | 2025-10-01 |
| Morgan Stanley | Maintain | Equal Weight | 2025-09-25 |
| Morgan Stanley | Upgrade | Equal Weight | 2025-09-18 |
| UBS | Maintain | Neutral | 2025-09-18 |
| Barclays | Maintain | Overweight | 2025-07-22 |
Pacific Gas & Electric shows a generally positive to neutral trend, with several “Buy,” “Outperform,” and “Overweight” ratings maintained or upgraded recently.
Which company has the best grades?
Pacific Gas & Electric Co. has received stronger and more positive grades overall compared to Dominion Energy, Inc., which shows a more mixed and cautious outlook. This difference may influence investors’ perception of growth potential and risk between the two utilities.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Dominion Energy, Inc. (D) and Pacific Gas & Electric Co. (PCG) based on recent financial and operational data.
| Criterion | Dominion Energy, Inc. (D) | Pacific Gas & Electric Co. (PCG) |
|---|---|---|
| Diversification | Moderate: Revenue split across Virginia, South Carolina, contracted energy; some reliance on specific regions | Moderate: Focused on electricity and natural gas segments; less geographic diversification |
| Profitability | Mixed: Net margin 14.7% (favorable), but ROIC 2.9% below WACC, indicating value destruction | Mixed: Net margin 10.3% (favorable), ROIC 4.0% below WACC, also indicating value destruction |
| Innovation | Limited data on innovation; improving ROIC trend suggests operational improvements | Limited innovation insight; improving ROIC trend but still shedding value |
| Global presence | Primarily U.S. East Coast with strong regional market presence | Primarily California with significant regulated utility presence |
| Market Share | Strong in Virginia and South Carolina utility markets | Leading position in California’s electricity and gas markets |
Key takeaways: Both companies show slightly unfavorable economic moats with ROIC below WACC, signaling value destruction despite improving profitability trends. Dominion benefits from strong regional utility presence, while PCG holds a leading role in California’s regulated markets. Investors should weigh the improving operational trends against ongoing challenges in capital efficiency.
Risk Analysis
Below is a comparison of key risks for Dominion Energy, Inc. (D) and Pacific Gas & Electric Co. (PCG) based on the most recent 2024 data:
| Metric | Dominion Energy, Inc. (D) | Pacific Gas & Electric Co. (PCG) |
|---|---|---|
| Market Risk | Beta 0.70 (moderate volatility) | Beta 0.38 (low volatility) |
| Debt level | Debt-to-Equity 1.53 (high) | Debt-to-Equity 1.94 (very high) |
| Regulatory Risk | Moderate; operates in multiple states with regulated utilities | High; California regulations and wildfire liabilities impact operations heavily |
| Operational Risk | Complex infrastructure across several states; moderate asset turnover | Aging infrastructure; low asset turnover and operational challenges |
| Environmental Risk | Exposure to regulations on natural gas and renewable transition | Significant risk from wildfire liabilities and environmental compliance |
| Geopolitical Risk | Low; US-focused utility company | Low; US-focused but California-specific risks |
Dominion Energy faces moderate market and regulatory risks with relatively high debt but strong dividend yield and stable operations. Pacific Gas & Electric shows higher debt and regulatory risk, notably from wildfire liabilities in California, and is in financial distress per its Altman Z-Score. The most impactful risks are PCG’s regulatory and financial distress risks, requiring cautious risk management.
Which Stock to Choose?
Dominion Energy, Inc. (D) shows a generally favorable income statement with strong net margin growth of 619.16% over 2020–2024, despite modest revenue growth of 2.03%. Its financial ratios reveal some weaknesses, including a low current ratio (0.71) and elevated debt-to-equity (1.53), while profitability metrics such as ROE (7.79%) and ROIC (2.86%) are slightly unfavorable. The rating stands at C+ with a very favorable overall assessment.
Pacific Gas & Electric Co. (PCG) exhibits a favorable income trend with 32.22% revenue growth and 245.7% net margin growth over the same period. Financial ratios indicate a mix of strengths and weaknesses: decent current (1.05) and quick ratios (1.0), but a higher debt-to-equity ratio (1.94) and unfavorable interest coverage. Profitability metrics are slightly better than D, with ROE at 8.33% and ROIC at 3.98%. The rating is B- with a very favorable status.
For investors, the choice might depend on risk tolerance and investment goals. Those prioritizing income statement strength and dividend yield might view Dominion Energy’s consistent profitability and higher dividend yield as appealing. Conversely, investors valuing overall financial stability and growth in income might find Pacific Gas & Electric’s stronger revenue growth and better liquidity ratios more favorable. Both companies have slightly unfavorable moats, indicating value destruction but improving profitability.
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 Pacific Gas & Electric Co. to enhance your investment decisions:
