Head to Head Comparison: DTE Energy (DTE) versus Dominion Energy (D)

DTE Energy (NYSE: DTE) and Dominion Energy (NYSE:D) are both large-cap utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Analyst Ratings

This is a summary of recent recommendations and price targets for DTE Energy and Dominion Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DTE Energy 1 3 5 0 2.44
Dominion Energy 0 9 4 0 2.31

DTE Energy presently has a consensus target price of $114.19, suggesting a potential upside of 15.03%. Dominion Energy has a consensus target price of $81.44, suggesting a potential upside of 10.42%. Given DTE Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe DTE Energy is more favorable than Dominion Energy.

Volatility & Risk

DTE Energy has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, Dominion Energy has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.

Earnings & Valuation

This table compares DTE Energy and Dominion Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DTE Energy $10.63 billion 1.68 $868.00 million $5.47 18.15
Dominion Energy $12.59 billion 3.78 $3.14 billion $4.91 15.02

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

Dividends

DTE Energy pays an annual dividend of $3.53 per share and has a dividend yield of 3.6%. Dominion Energy pays an annual dividend of $3.08 per share and has a dividend yield of 4.2%. DTE Energy pays out 64.5% of its earnings in the form of a dividend. Dominion Energy pays out 62.7% 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. DTE Energy has increased its dividend for 9 consecutive years and Dominion Energy has increased its dividend for 6 consecutive years. Dominion Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares DTE Energy and Dominion Energy’s 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%
Dominion Energy 24.92% 12.99% 3.09%

Insider & Institutional Ownership

68.2% of DTE Energy shares are owned by institutional investors. Comparatively, 64.6% of Dominion Energy shares are owned by institutional investors. 0.5% of DTE Energy shares are owned by company insiders. Comparatively, 0.4% of Dominion Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Dominion Energy beats DTE Energy on 9 of the 17 factors compared between the two stocks.

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.

About Dominion Energy

Dominion Energy, Inc., formerly Dominion Resources, Inc., is a producer and transporter of energy. Dominion is focused on its investment in regulated electric generation, transmission and distribution and regulated natural gas transmission and distribution infrastructure. It operates through three segments: Dominion Virginia Power operating segment (DVP), Dominion Generation, Dominion Energy, and Corporate and Other. The DVP segment includes regulated electric distribution and regulated electric transmission. The Dominion Generation segment includes regulated electric fleet and merchant electric fleet. The Dominion Energy segment includes gas transmission and storage, gas gathering and processing, liquefied natural gas import and storage, and nonregulated retail energy marketing. As of December 31, 2016, Dominion served utility and retail energy customers, and operated an underground natural gas storage system with approximately one trillion cubic feet of storage capacity.

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