Head-To-Head Comparison: DTE Energy (DTE) versus Its Rivals

DTE Energy (NYSE:DTE) is one of 52 publicly-traded companies in the “Multi – Utilities” industry, but how does it contrast to its peers? We will compare DTE Energy to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, dividends, valuation, earnings and risk.

Risk & Volatility

DTE Energy has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, DTE Energy’s peers have a beta of 0.68, indicating that their average share price is 32% less volatile than the S&P 500.

Dividends

DTE Energy pays an annual dividend of $4.66 per share and has a dividend yield of 3.4%. DTE Energy pays out 73.7% of its earnings in the form of a dividend. As a group, “Multi – Utilities” companies pay a dividend yield of 9.3% and pay out 33.6% of their earnings in the form of a dividend. DTE Energy has increased its dividend for 16 consecutive years. DTE Energy lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of recent recommendations and price targets for DTE Energy and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DTE Energy	0	5	9	1	2.73
DTE Energy Competitors	1054	4116	4432	87	2.37

DTE Energy currently has a consensus price target of $148.92, indicating a potential upside of 10.12%. As a group, “Multi – Utilities” companies have a potential upside of 30.93%. Given DTE Energy’s peers higher probable upside, analysts clearly believe DTE Energy has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares DTE Energy and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DTE Energy	$15.81 billion	$1.46 billion	21.40
DTE Energy Competitors	$16.49 billion	$269.64 million	33.99

DTE Energy’s peers have higher revenue, but lower earnings than DTE Energy. DTE Energy is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares DTE Energy and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DTE Energy	8.21%	12.27%	2.73%
DTE Energy Competitors	9.09%	14.89%	4.08%

Insider and Institutional Ownership

76.1% of DTE Energy shares are owned by institutional investors. Comparatively, 60.7% of shares of all “Multi – Utilities” companies are owned by institutional investors. 0.6% of DTE Energy shares are owned by company insiders. Comparatively, 10.1% of shares of all “Multi – Utilities” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

DTE Energy peers beat DTE Energy on 10 of the 15 factors compared.

DTE Energy Company Profile

DTE Energy Company engages in the utility operations. The company's Electric segment generates, purchases, distributes, and sells electricity to various residential, commercial, and industrial customers in southeastern Michigan. It generates electricity through coal-fired plants, hydroelectric pumped storage, and nuclear plants, as well as wind and solar assets. This segment owns and operates distribution substations and line transformers. The company's Gas segment purchases, stores, transports, distributes, and sells natural gas to various residential, commercial, and industrial customers throughout Michigan; and sells storage and transportation capacity. Its DTE Vantage segment offers metallurgical and petroleum coke to steel and other industries; and power generation, steam production, chilled water production, and wastewater treatment services, as well as air supplies compressed air to industrial customers. Its Energy Trading segment engages in power, natural gas, and environmental marketing and trading; structured transactions; and the optimization of contracted natural gas pipeline transportation and storage positions. The company was founded in 1849 and is based in Detroit, Michigan.