Critical Analysis: DTE Energy (DTE) versus SCANA (SCG)
DTE Energy (NYSE: DTE) and SCANA (NYSE:SCG) are both mid-cap utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
This is a summary of recent ratings and target prices for DTE Energy and SCANA, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Risk and Volatility
DTE Energy has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, SCANA has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500.
Valuation and Earnings
This table compares DTE Energy and SCANA’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DTE Energy||$10.63 billion||1.83||$868.00 million||$5.46||19.83|
|SCANA||$4.23 billion||1.39||$595.00 million||$3.15||13.12|
DTE Energy has higher revenue and earnings than SCANA. SCANA is trading at a lower price-to-earnings ratio than DTE Energy, indicating that it is currently the more affordable of the two stocks.
DTE Energy pays an annual dividend of $3.53 per share and has a dividend yield of 3.3%. SCANA pays an annual dividend of $2.45 per share and has a dividend yield of 5.9%. DTE Energy pays out 64.7% of its earnings in the form of a dividend. SCANA pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DTE Energy has increased its dividend for 17 consecutive years and SCANA has increased its dividend for 5 consecutive years.
This table compares DTE Energy and SCANA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
68.3% of DTE Energy shares are owned by institutional investors. Comparatively, 66.7% of SCANA shares are owned by institutional investors. 0.5% of DTE Energy shares are owned by company insiders. Comparatively, 0.4% of SCANA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
DTE Energy beats SCANA on 12 of the 17 factors compared between the two stocks.
DTE Energy Company Profile
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.
SCANA Company Profile
SCANA Corporation is a holding company. The Company, through its subsidiaries, is engaged in the generation, transmission, distribution and sale of electricity in South Carolina. The Company operates through segments, including Electric Operations, Gas Distribution, Gas Marketing and All Other. The Company is engaged in the purchase, transmission and sale of natural gas in North Carolina and South Carolina. The Electric Operations segment generates, transmits and distributes electricity. The Company’s regulated businesses include subsidiaries, such as South Carolina Electric & Gas Company (SCE&G), South Carolina Fuel Company, Inc. (Fuel Company), South Carolina Generating Company, Inc. (GENCO) and Public Service Company of North Carolina, Incorporated (PSNC Energy). The Company’s nonregulated businesses include subsidiaries, such as SCANA Energy Marketing, Inc. (SCANA Energy), ServiceCare, Inc., SCANA Services, Inc. and SCANA Corporate Security Services, Inc.
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