Dominion Energy, Inc. and Pinnacle West Capital Corporation are two prominent players in the regulated electric utilities sector, each delivering energy solutions across distinct but overlapping U.S. regions. Both companies emphasize innovation through diversified energy generation and transmission assets, aiming to balance reliability with sustainability. This article will provide a clear, comparative analysis to help you decide which company holds the most promise for your investment portfolio in 2026.
Table of contents
Companies Overview
I will begin the comparison between Dominion Energy, Inc. and Pinnacle West Capital Corporation by providing an overview of these two companies and their main differences.
Dominion Energy Overview
Dominion Energy, Inc. operates as a regulated electric utility in the United States, serving approximately 2.7M electricity customers in Virginia and North Carolina and 3.1M natural gas customers across multiple states. The company also develops renewable energy projects and manages substantial electric and gas transmission and distribution infrastructure. Founded in 1983 and headquartered in Richmond, VA, Dominion holds about 30.2GW of electric generating capacity.
Pinnacle West Capital Overview
Pinnacle West Capital Corporation, through its subsidiary Arizona Public Service, provides retail and wholesale electric services primarily in Arizona. It operates coal, nuclear, gas, oil, and solar power plants, managing over 6.3GW of regulated generation capacity. The company serves around 1.3M customers and maintains extensive transmission and distribution networks. Incorporated in 1985, it is based in Phoenix, AZ.
Key similarities and differences
Both companies operate in the regulated electric utility industry, focusing on generation, transmission, and distribution of electricity. Dominion Energy has a broader geographic footprint and a larger customer base, including significant natural gas operations, while Pinnacle West is concentrated in Arizona with diversified generation sources. Dominion’s asset base and workforce are notably larger, reflecting their different scales and market reach.
Income Statement Comparison
The table below compares key income statement metrics for Dominion Energy, Inc. and Pinnacle West Capital Corporation for the fiscal year 2024, providing a snapshot of their financial performance.
| Metric | Dominion Energy, Inc. | Pinnacle West Capital Corporation |
|---|---|---|
| Market Cap | 49.5B | 10.7B |
| Revenue | 14.5B | 5.12B |
| EBITDA | 6.71B | 2.07B |
| EBIT | 4.07B | 1.11B |
| Net Income | 2.12B | 609M |
| EPS | 2.44 | 5.35 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Dominion Energy, Inc.
Dominion Energy’s revenue showed modest growth from 2020 to 2024, increasing from $14.17B to $14.46B, with net income recovering significantly from a loss in 2020 to $2.12B in 2024. Margins improved overall, with a gross margin near 48% and net margin at about 14.7%. The latest year saw a slight revenue growth slowdown but a favorable rise in EBIT and net income margins.
Pinnacle West Capital Corporation
Pinnacle West’s revenue steadily rose from $3.59B in 2020 to $5.12B in 2024, accompanied by consistent net income growth to $609M. Gross and EBIT margins remained favorable around 42% and 21.7%, respectively, while net margin was about 11.9%. The most recent year reported strong revenue and profit growth, with notable EPS improvement and stable interest expense impact.
Which one has the stronger fundamentals?
Dominion Energy exhibits stronger net income growth and margin improvements over the period, supported by higher absolute profitability and favorable margin trends, despite some interest expense concerns. Pinnacle West shows robust revenue and EBIT growth with better interest expense management but slightly weaker net margin progression. Both companies present favorable fundamentals, with Dominion leaning on profitability strength and Pinnacle West on growth momentum.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Dominion Energy, Inc. (D) and Pinnacle West Capital Corporation (PNW) based on their most recent fiscal year 2024 data.
| Ratios | Dominion Energy, Inc. (D) | Pinnacle West Capital Corporation (PNW) |
|---|---|---|
| ROE | 7.79% | 9.01% |
| ROIC | 2.86% | 3.48% |
| P/E | 21.28 | 15.85 |
| P/B | 1.66 | 1.43 |
| Current Ratio | 0.71 | 0.59 |
| Quick Ratio | 0.52 | 0.42 |
| D/E | 1.53 | 1.64 |
| Debt-to-Assets | 40.8% | 42.3% |
| Interest Coverage | 1.72 | 2.68 |
| Asset Turnover | 0.14 | 0.20 |
| Fixed Asset Turnover | 0.21 | 0.25 |
| Payout ratio | 105.4% | 64.8% |
| Dividend yield | 4.95% | 4.09% |
Interpretation of the Ratios
Dominion Energy, Inc.
Dominion Energy shows a mixed financial profile with a strong net margin of 14.69% and a favorable dividend yield of 4.95%, suggesting reliable shareholder returns. However, it faces challenges with low returns on equity (7.79%) and invested capital (2.86%), alongside unfavorable liquidity ratios like a current ratio of 0.71. The company maintains dividend payments with potential risks due to weaker coverage metrics.
Pinnacle West Capital Corporation
Pinnacle West exhibits a favorable net margin of 11.88% and a dividend yield of 4.09%, supporting steady shareholder returns. Its return on equity (9.01%) and return on invested capital (3.48%) are below ideal levels, and liquidity ratios remain weak with a current ratio of 0.59. Despite these concerns, Pinnacle West holds a favorable price-to-book ratio of 1.43, suggesting moderate valuation strength.
Which one has the best ratios?
Both companies share a slightly unfavorable global ratios opinion, with equal unfavorable ratios at 50%. Pinnacle West scores better on favorable ratios (28.57% vs. 21.43%) and valuation metrics, while Dominion Energy offers a higher dividend yield but weaker liquidity and returns. Neither company stands out decisively in overall ratio quality.
Strategic Positioning
This section compares the strategic positioning of Dominion Energy, Inc. and Pinnacle West Capital Corporation including market position, key segments, and exposure to technological disruption:
Dominion Energy, Inc.
- Large market cap of 49.5B with diverse regional presence; faces regulated electric competitive pressure.
- Revenue driven by electric generation in Virginia (10.2B), South Carolina (3.3B), and contracted renewable energy (1.1B).
- Exposure includes regulated natural gas distribution and nonregulated renewable energy assets; diverse energy sources.
Pinnacle West Capital Corporation
- Smaller market cap of 10.7B; focused mainly on Arizona market with regulated electric competition.
- Revenue mainly from electric service (2.56B), transmission, and wholesale energy segments.
- Generation uses coal, nuclear, gas, oil, and solar; transmission and distribution infrastructure concentrated in Arizona.
Dominion Energy, Inc. vs Pinnacle West Capital Corporation Positioning
Dominion Energy shows a diversified geographic and business segment approach with significant natural gas and renewable energy operations. Pinnacle West is more concentrated regionally, relying heavily on electric services within Arizona, with a mix of traditional and solar generation. Diversification offers risk spread; concentration may limit scale.
Which has the best competitive advantage?
Both companies are shedding value as ROIC is below WACC; however, Dominion Energy’s growing ROIC contrasts with Pinnacle West’s declining trend, indicating slightly less unfavorable competitive positioning for Dominion Energy.
Stock Comparison
The stock prices of Dominion Energy, Inc. and Pinnacle West Capital Corporation have shown notable bullish trends over the past 12 months, with both experiencing deceleration in growth and recent mild declines in price.
Trend Analysis
Dominion Energy, Inc. exhibited a 26.43% price increase over the past year, indicating a bullish trend with deceleration in momentum. The stock ranged from a low of 44.79 to a high of 62.77, with recent weeks showing a slight downturn of -5.04%.
Pinnacle West Capital Corporation recorded a 31.14% price increase over the last 12 months, also bullish with decelerating gains. Its highest price reached 94.45 and lowest 67.92. Recently, the stock declined by 3.31%, reflecting a modest pullback.
Comparing both, Pinnacle West Capital Corporation delivered a higher market performance with a greater overall price increase, despite both showing recent moderate downward trends.
Target Prices
Analysts provide a clear target price consensus for these utilities stocks, indicating expected performance ranges.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Dominion Energy, Inc. | 70 | 63 | 66 |
| Pinnacle West Capital Corporation | 115 | 85 | 96.33 |
Target consensus prices for Dominion Energy and Pinnacle West suggest moderate upside potential compared to current prices of $57.98 and $89.07 respectively, reflecting generally positive analyst sentiment.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Dominion Energy, Inc. and Pinnacle West Capital Corporation:
Rating Comparison
D Rating
- Rating: C+ with a very favorable status.
- Discounted Cash Flow Score: 4, favorable, indicating strong future cash flow projections.
- ROE Score: 3, moderate efficiency in generating profit from equity.
- ROA Score: 1, very unfavorable, indicating poor asset utilization.
- Debt To Equity Score: 3, moderate financial risk.
- Overall Score: 2, moderate overall financial standing.
PNW Rating
- Rating: C+ with a very favorable status.
- Discounted Cash Flow Score: 1, very unfavorable, suggesting weaker cash flow outlook.
- ROE Score: 3, moderate efficiency in generating profit from equity.
- ROA Score: 3, moderate asset utilization and earnings generation.
- Debt To Equity Score: 1, very unfavorable, indicating higher financial risk.
- Overall Score: 2, moderate overall financial standing.
Which one is the best rated?
Based strictly on the provided data, both companies share the same overall rating (C+) and overall score (2). However, Dominion Energy scores better on discounted cash flow and debt-to-equity metrics, while Pinnacle West performs better in return on assets.
Scores Comparison
Here is a comparison of the financial scores for Dominion Energy, Inc. (D) and Pinnacle West Capital Corporation (PNW):
D Scores
- Piotroski Score: Strong financial health with a score of 7 out of 9, indicating solid fundamentals.
- Altman Z-Score: Unavailable, no data provided to assess bankruptcy risk.
PNW Scores
- Piotroski Score: Average financial strength with a score of 4 out of 9, reflecting moderate fundamentals.
- Altman Z-Score: 0.73, placing the company in the distress zone with a higher bankruptcy risk.
Which company has the best scores?
Based strictly on the data provided, Dominion Energy (D) shows a stronger Piotroski Score of 7 compared to PNW’s 4, while PNW’s Altman Z-Score indicates financial distress, and D’s Altman Z-Score is unavailable. This suggests D demonstrates stronger financial health in the available metrics.
Grades Comparison
The following analysis compares the recent grades assigned to Dominion Energy, Inc. and Pinnacle West Capital Corporation by reputable grading firms:
Dominion Energy, Inc. Grades
This table summarizes the latest grades from recognized 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 show a stable pattern with a mix of Overweight, Equal Weight, and Underweight ratings, indicating moderate consensus leaning towards Hold.
Pinnacle West Capital Corporation Grades
Below are the recent grades issued by established firms for Pinnacle West Capital Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Neutral | 2025-12-17 |
| Keybanc | Downgrade | Sector Weight | 2025-12-12 |
| Keybanc | Maintain | Overweight | 2025-10-15 |
| UBS | Maintain | Neutral | 2025-10-10 |
| Barclays | Maintain | Equal Weight | 2025-10-07 |
| Argus Research | Maintain | Buy | 2025-09-30 |
| Morgan Stanley | Maintain | Equal Weight | 2025-09-25 |
| UBS | Maintain | Neutral | 2025-09-12 |
| Mizuho | Downgrade | Neutral | 2025-09-09 |
| Barclays | Maintain | Equal Weight | 2025-08-13 |
Pinnacle West Capital’s grades mostly range from Neutral to Equal Weight, with some downgrades, demonstrating a cautious stance overall.
Which company has the best grades?
Dominion Energy, Inc. has received a broader range of grades including several Overweight ratings, whereas Pinnacle West Capital Corporation’s grades tend toward Neutral and Equal Weight with some downgrades. This variation suggests Dominion may present slightly stronger analyst confidence, potentially influencing investor sentiment toward more favorable expectations.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Dominion Energy, Inc. (D) and Pinnacle West Capital Corporation (PNW), based on the most recent financial and operational data.
| Criterion | Dominion Energy, Inc. (D) | Pinnacle West Capital Corporation (PNW) |
|---|---|---|
| Diversification | Strong with multiple segments: Virginia, South Carolina, Contracted Energy | More concentrated mainly in Electric Service and Transmission |
| Profitability | Moderate net margin (14.7%), but ROIC (2.9%) below WACC; value destroying but improving profitability | Lower net margin (11.9%), ROIC (3.5%) also below WACC with declining trend; value destroying and decreasing profitability |
| Innovation | Moderate innovation in energy infrastructure, some growth in contracted energy | More traditional utility focus, limited innovation reported |
| Global presence | Primarily regional (Virginia, South Carolina), limited global reach | Regional focus on U.S. Southwest, no global presence |
| Market Share | Large market share in Virginia energy markets, significant revenue from contracted energy | Dominant in Arizona electric service, smaller footprint compared to D |
Key takeaways: Dominion Energy shows slightly unfavorable value creation but with improving profitability and diversified regional operations. Pinnacle West faces more headwinds, with declining profitability and a narrower regional focus. Both companies have investment risks due to value destruction but differ in growth and diversification profiles.
Risk Analysis
Below is a comparative risk table for Dominion Energy, Inc. and Pinnacle West Capital Corporation based on 2024 data.
| Metric | Dominion Energy, Inc. (D) | Pinnacle West Capital Corp. (PNW) |
|---|---|---|
| Market Risk | Beta 0.699 (moderate) | Beta 0.543 (lower risk) |
| Debt level | Debt/Equity 1.53 (high) | Debt/Equity 1.64 (high) |
| Regulatory Risk | High (regulated electric) | High (regulated electric) |
| Operational Risk | Extensive infrastructure | Large grid and generation assets |
| Environmental Risk | Transition to renewables | Mix of coal, nuclear, solar |
| Geopolitical Risk | US-focused, low exposure | US-focused, low exposure |
Dominion Energy’s moderate market risk and ongoing renewable transition present operational challenges but also growth opportunities. Pinnacle West faces higher financial leverage and environmental risks due to fossil fuel reliance. Both have significant regulatory exposure inherent to utilities.
Which Stock to Choose?
Dominion Energy, Inc. (D) shows a slightly unfavorable financial ratios profile with 50% unfavorable metrics, including low asset turnover and high debt levels. Its income statement is favorable overall, with strong net margin growth and profitability, though debt remains elevated. The company’s rating is very favorable (C+), supported by a moderate overall score and a strong discounted cash flow score.
Pinnacle West Capital Corporation (PNW) also displays a slightly unfavorable ratios evaluation, with 50% unfavorable ratios, but has a somewhat better balance with favorable price-to-book and dividend yield metrics. Income growth is favorable overall, especially revenue and earnings per share growth, though net margin declined. Its rating mirrors Dominion’s at very favorable (C+), but with a moderate overall score and weaker discounted cash flow and debt metrics.
For investors focused on growth and income, Dominion’s stronger income statement and favorable rating might appear more attractive, while those prioritizing valuation and moderate financial stability could find Pinnacle West’s metrics more suitable. The interpretation depends on individual risk tolerance and investment objectives, given both companies exhibit value destruction signals in their economic moat evaluations.
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 Pinnacle West Capital Corporation to enhance your investment decisions:
