Dominion Energy vs. GE Vernova: Which Utilities Stock Is a Better Buy in 2026?

As the world grapples with soaring electricity demand from artificial intelligence and a shifting energy landscape, investors are weighing two different paths to power. Should you bet on Dominion Energy (NYSE:D) or GE Vernova (NYSE:GEV)?

Dominion Energy is a regulated utility focused on steady infrastructure growth and reliable dividends in the southeastern United States. GE Vernova is a recently spun-off industrial giant that manufactures the turbines and grid technology powering the global energy transition. These companies represent two different ways to play the rising demand for electricity.

The case for Dominion Energy

Dominion Energy operates as a regulated utility, a prominent name among electric utility stocks, providing electricity to roughly 4.1 million customers in Virginia and the Carolinas. According to its latest annual report, filed for the most recent fiscal period, the company's major growth driver is the massive expansion of data centers in northern Virginia. The company also partners with Stonepeak on the Coastal Virginia Offshore Wind project, focusing on large-scale renewable infrastructure.

In FY 2025, the company reported revenue of nearly $16.5 billion, representing growth of approximately 14.2% compared to the prior year. This revenue translated into net income of roughly $3.0 billion, which resulted in a net margin of close to 18.2%, a measure of how much profit the company keeps from its total sales. The increase reflects higher rates and a larger customer base as the utility expands its footprint to meet industrial needs.

As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 1.7x, which measures total debt against the value owned by shareholders. The current ratio, which compares short-term assets to short-term liabilities to assess liquidity, is roughly 0.8x. Free cash flow for the period was roughly negative $7.3 billion, which is the cash left after paying for business operations and capital investments, reflecting heavy spending on long-term infrastructure.

The case for GE Vernova

GE Vernova focuses on the manufacture and service of equipment for power, wind, and electrification segments across more than 100 countries. As noted in its latest annual report, filed for the most recent fiscal year, its technology helps generate approximately 25% of the world's electricity. The company is increasingly positioned to support data centers and hyperscalers that require reliable, large-scale power solutions through its advanced gas turbine and electrification segments.

In FY 2025, revenue reached nearly $38.1 billion, an increase of close to 8.9% over the previous fiscal year. The company earned a net income of roughly $4.9 billion, yielding a net margin of approximately 12.8%, indicating the percentage of revenue remaining after all expenses are paid. This performance demonstrates a significant swing toward profitability compared to previous years as its wind segment and operational efficiency improved.

According to its December 2025 balance sheet, the debt-to-equity ratio is 0.0x, indicating the company has minimal debt relative to its equity base. The current ratio is roughly 1.0x, suggesting its short-term assets roughly equal its short-term liabilities. Free cash flow for the year was approximately $3.7 billion, which represents the cash remaining after paying for business operations and equipment purchases.

Risk profile comparison

Dominion Energy faces significant regulatory risks because state and federal agencies dictate the rates it can charge its customers. Infrastructure projects like the offshore wind initiative carry execution risks, including potential cost overruns or delays in permitting and supply chain logistics. It also faces competition for capital from other regional utilities like Duke Energy (NYSE:DUK) or NextEra Energy (NYSE:NEE).

GE Vernova deals with complex supply chains and the risk of quality issues in its sophisticated gas and wind turbines. Many of its earnings come from long-term, fixed-price contracts that are sensitive to inflation and potential cost estimation errors. It competes globally against major industrial players such as Siemens Energy (OTC:SMEGF) and Mitsubishi Electric (OTC:MIELF).

Valuation comparison

Dominion Energy appears to be the more conservative option based on its Forward P/E, while GE Vernova carries a higher P/S ratio due to its growth profile.

Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

I'd go with GE Vernova. Every utility racing to meet AI data center demand needs the gas turbines, grid equipment, and electrification infrastructure that GE Vernova makes. That positions it at the center of a spending wave that is still in its early stages. Orders more than doubled year over year in the most recent quarter, the backlog just hit a record level, and free cash flow guidance was raised dramatically for the full year.

Dominion, to its credit, is executing steadily in a difficult environment. It beat estimates on both revenue and operating earnings in the most recent quarter, added more than 5 gigawatts of new data center contracts since year-end, and pays a dividend backed by more than four decades of consecutive payments. For investors who want stable, income-generating utility exposure to the AI electricity build-out, it is a solid choice.

But Dominion is navigating a pending merger with NextEra that introduces regulatory complexity and won't close until late 2027 at the earliest. GE Vernova has no such distraction; just a record backlog and demand that keeps accelerating. For a long-term investor, owning the company making the equipment the entire power grid depends on is a more dynamic bet than owning one of the utilities buying it.

Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Vernova, Mitsubishi Electric, and NextEra Energy. The Motley Fool recommends Dominion Energy, Duke Energy, and Siemens Energy Ag. The Motley Fool has a disclosure policy.