Public Service Enterprise Group (NYSE:PEG) versus DTE Energy (NYSE:DTE) Financial Contrast

Public Service Enterprise Group (NYSE:PEG) and DTE Energy (NYSE:DTE) are both large-cap utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for Public Service Enterprise Group and DTE Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Public Service Enterprise Group	0	10	6	1	2.47
DTE Energy	0	5	9	1	2.73

Public Service Enterprise Group presently has a consensus price target of $89.43, suggesting a potential upside of 26.05%. DTE Energy has a consensus price target of $157.00, suggesting a potential upside of 19.31%. Given Public Service Enterprise Group’s higher possible upside, analysts clearly believe Public Service Enterprise Group is more favorable than DTE Energy.

Dividends

Public Service Enterprise Group pays an annual dividend of $2.68 per share and has a dividend yield of 3.8%. DTE Energy pays an annual dividend of $4.66 per share and has a dividend yield of 3.5%. Public Service Enterprise Group pays out 66.7% of its earnings in the form of a dividend. DTE Energy pays out 73.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Public Service Enterprise Group has raised its dividend for 14 consecutive years and DTE Energy has raised its dividend for 16 consecutive years. Public Service Enterprise Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Public Service Enterprise Group and DTE Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Public Service Enterprise Group	16.04%	12.42%	3.68%
DTE Energy	8.00%	12.19%	2.74%

Volatility & Risk

Public Service Enterprise Group has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, DTE Energy has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Valuation and Earnings

This table compares Public Service Enterprise Group and DTE Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Public Service Enterprise Group	$12.17 billion	2.91	$2.11 billion	$4.02	17.65
DTE Energy	$15.81 billion	1.73	$1.46 billion	$6.32	20.82

Public Service Enterprise Group has higher earnings, but lower revenue than DTE Energy. Public Service Enterprise Group is trading at a lower price-to-earnings ratio than DTE Energy, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

73.3% of Public Service Enterprise Group shares are held by institutional investors. Comparatively, 76.1% of DTE Energy shares are held by institutional investors. 0.2% of Public Service Enterprise Group shares are held by company insiders. Comparatively, 0.6% of DTE Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Public Service Enterprise Group beats DTE Energy on 9 of the 17 factors compared between the two stocks.

About Public Service Enterprise Group

Public Service Enterprise Group Incorporated, through its subsidiaries, operates in electric and gas utility business in the United States. It operates through PSE&G and PSEG Power segments. The PSE&G segment transmits electricity; distributes electricity and natural gas to residential, commercial, and industrial customers; and appliance services and repairs to customers through its service territory, as well as invests in solar generation projects, and energy efficiency and related programs. The PSEG Power segment engages in nuclear generation businesses; and supplies power and natural gas to nuclear power plants and gas storage facilities activities. As of December 31, 2023, it had electric transmission and distribution system of 25,000 circuit miles and 866,600 poles; 56 switching stations with an installed capacity of 39,953 megavolt-amperes (MVA), and 235 substations with an installed capacity of 10,382 MVA; 109 MVA aggregate installed capacity for substations; four electric distribution headquarters and five electric sub-headquarters; 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and one meter shop, as well as 56 natural gas metering and regulating stations; and 158 MegaWatts defined conditions of installed PV solar capacity. Public Service Enterprise Group Incorporated was founded in 1903 and is based in Newark, New Jersey.

About DTE Energy

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.