DTE Energy Company (DTE) vs Edison International (EIX)

DTE Energy Company and Edison International are both Utilities Regulated Electric companies. DTE Energy Company is the larger, with a market value of $25.2B against $20.3B — 1.2× the size. Edison International trades at the lower P/E: 5.4× against 19.1×. DTE Energy Company grew revenue faster over the last twelve months: 15.9% against 10.7%. Edison International has the higher net margin (19.3% vs 8.00%) and the higher return on invested capital (6.48% vs 3.46%). Both pay a dividend; Edison International yields more (4.55% vs 3.94%). Across the 22 metrics below, Edison International leads on 19 and DTE Energy Company on 3.

Valuation

Metric DTE EIX Utilities Regulated Electric median
P/E 19.13 5.41 18.84
P/S 1.53 1.04 2.52
P/B 2.08 1.07 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 12.66 6.35 11.82
EV/Sales 3.20 3.21 4.58
Earnings yield 5.23% 18.48% 5.30%
Free cash flow yield (7.61%) (1.92%) (5.06%)

Profitability

Metric DTE EIX Utilities Regulated Electric median
Gross margin 44.43% 75.10% 66.28%
Operating margin 13.32% 32.69% 21.79%
Net margin 8.00% 19.28% 12.94%
Free cash flow margin (11.66%) (2.00%) (11.51%)
Return on equity 11.03% 20.68% 9.75%
Return on assets 2.47% 4.05% 2.75%
Return on invested capital 3.46% 6.48% 3.87%

Growth

Metric DTE EIX Utilities Regulated Electric median
Revenue growth (TTM) 15.94% 10.74% 7.43%
EPS growth (last fiscal year) 3.84% 248.94% —
Revenue growth, 5-year CAGR 6.72% 7.31% 6.75%
Net income growth, 5-year CAGR 1.34% 43.26% 6.44%

Health

Metric DTE EIX Utilities Regulated Electric median
Debt to equity 2.27 2.22 1.53
Current ratio 0.80 0.66 0.81
Net debt to EBITDA 6.02 3.84 5.25

Dividend

Metric DTE EIX Utilities Regulated Electric median
Dividend yield 3.94% 4.55% 4.33%
Payout ratio 0.58 1.17 0.66

Size

Metric DTE EIX Utilities Regulated Electric median
Market cap 25.22b 20.25b 22.90b

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