DTE Energy (NYSE:DTE – Get Free Report) and Public Service Enterprise Group (NYSE:PEG – Get Free Report) are both large-cap utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.
Volatility & Risk
DTE Energy has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Public Service Enterprise Group has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for DTE Energy and Public Service Enterprise Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DTE Energy | 0 | 5 | 9 | 1 | 2.73 |
| Public Service Enterprise Group | 0 | 12 | 8 | 0 | 2.40 |
DTE Energy presently has a consensus price target of $149.31, indicating a potential upside of 9.75%. Public Service Enterprise Group has a consensus price target of $80.00, indicating a potential upside of 7.68%. Given DTE Energy’s stronger consensus rating and higher possible upside, analysts clearly believe DTE Energy is more favorable than Public Service Enterprise Group.
Dividends
DTE Energy pays an annual dividend of $4.66 per share and has a dividend yield of 3.4%. Public Service Enterprise Group pays an annual dividend of $2.68 per share and has a dividend yield of 3.6%. DTE Energy pays out 73.7% of its earnings in the form of a dividend. Public Service Enterprise Group pays out 66.7% 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 16 consecutive years and Public Service Enterprise Group has increased its dividend for 14 consecutive years. Public Service Enterprise Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
76.1% of DTE Energy shares are owned by institutional investors. Comparatively, 73.3% of Public Service Enterprise Group shares are owned by institutional investors. 0.6% of DTE Energy shares are owned by company insiders. Comparatively, 0.2% of Public Service Enterprise Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares DTE Energy and Public Service Enterprise Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DTE Energy | $16.46 billion | 1.72 | $1.46 billion | $6.32 | 21.53 |
| Public Service Enterprise Group | $12.54 billion | 2.95 | $2.11 billion | $4.02 | 18.48 |
Public Service Enterprise Group has lower revenue, but higher earnings 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.
Profitability
This table compares DTE Energy and Public Service Enterprise Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DTE Energy | 8.00% | 12.19% | 2.74% |
| Public Service Enterprise Group | 16.04% | 12.42% | 3.68% |
Summary
DTE Energy beats Public Service Enterprise Group on 10 of the 18 factors compared between the two stocks.
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.
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.
Receive News & Ratings for DTE Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for DTE Energy and related companies with MarketBeat.com's FREE daily email newsletter.
