Contrasting DTE Energy (DTE) and Its Competitors

DTE Energy (NYSE: DTE) is one of 87 public companies in the “Electric Utilities” industry, but how does it weigh in compared to its rivals? We will compare DTE Energy to related businesses based on the strength of its institutional ownership, earnings, profitability, valuation, dividends, analyst recommendations and risk.

Dividends

DTE Energy pays an annual dividend of $3.30 per share and has a dividend yield of 2.9%. DTE Energy pays out 60.4% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 101.8% of their earnings in the form of a dividend. DTE Energy has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of current ratings for DTE Energy and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DTE Energy 1 3 3 0 2.29
DTE Energy Competitors 551 3093 2472 45 2.33

DTE Energy currently has a consensus target price of $112.43, suggesting a potential downside of 0.02%. As a group, “Electric Utilities” companies have a potential upside of 7.48%. Given DTE Energy’s rivals stronger consensus rating and higher possible upside, analysts plainly believe DTE Energy has less favorable growth aspects than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
DTE Energy 8.01% 9.56% 2.84%
DTE Energy Competitors -5.85% 7.79% 2.46%

Institutional and Insider Ownership

68.2% of DTE Energy shares are held by institutional investors. Comparatively, 65.9% of shares of all “Electric Utilities” companies are held by institutional investors. 0.5% of DTE Energy shares are held by company insiders. Comparatively, 2.6% of shares of all “Electric Utilities” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares DTE Energy and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
DTE Energy $10.63 billion $868.00 million 20.60
DTE Energy Competitors $7.53 billion $821.25 million 46.90

DTE Energy has higher revenue and earnings than its rivals. DTE Energy is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

DTE Energy has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, DTE Energy’s rivals have a beta of 0.64, suggesting that their average share price is 36% less volatile than the S&P 500.

Summary

DTE Energy beats its rivals on 8 of the 15 factors compared.

About DTE Energy

DTE Energy Company is an energy company. Its segments include Electric, which consists of DTE Electric Company, which is engaged in the generation, purchase, distribution and sale of electricity to residential, commercial and industrial customers in southeastern Michigan; Gas, which consists of DTE Gas Company, which is engaged in the purchase, storage, transportation, distribution and sale of natural gas to residential, commercial and industrial customers throughout Michigan; Gas Storage and Pipelines, which consists of natural gas pipeline, gathering and storage businesses; Power and Industrial Projects, which consists of projects that deliver energy and utility-type products and services to industrial, commercial and institutional customers, and sell electricity from renewable energy projects; Energy Trading, which consists of energy marketing and trading operations, and Corporate and Other, which includes various holding company activities and holds certain non-utility debt.

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