DTE Energy (DTE) and Its Peers Financial Survey

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

Analyst Ratings

This is a summary of recent ratings and target prices for DTE Energy and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DTE Energy	0	5	10	1	2.75
DTE Energy Competitors	1055	4122	4438	87	2.37

DTE Energy currently has a consensus price target of $148.58, suggesting a potential upside of 6.76%. As a group, “Multi – Utilities” companies have a potential upside of 29.10%. Given DTE Energy’s peers higher possible upside, analysts clearly believe DTE Energy has less favorable growth aspects than its peers.

Volatility and Risk

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

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%	12.17%	2.70%
DTE Energy Competitors	8.58%	14.30%	4.07%

Dividends

DTE Energy pays an annual dividend of $4.66 per share and has a dividend yield of 3.3%. DTE Energy pays out 71.0% of its earnings in the form of a dividend. As a group, “Multi – Utilities” companies pay a dividend yield of 9.1% 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.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
DTE Energy	$15.81 billion	$1.46 billion	21.21
DTE Energy Competitors	$16.43 billion	$269.64 million	43.58

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.

Insider & 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 company is poised for long-term growth.

Summary

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

About DTE Energy

DTE Energy is a Detroit-based energy company whose core businesses are regulated electric and natural gas utilities in Michigan. Through DTE Electric, it generates, transmits and distributes electricity, while DTE Gas provides natural gas service to customers across the state. The company also operates non-utility businesses, including energy marketing and trading and industrial energy services. These businesses develop energy solutions such as recovering energy from industrial processes and waste, alongside the company’s investments in renewable energy generation.