DTE Energy Company (DTE) vs Fortis (FTS)

DTE Energy Company and Fortis are both Utilities Regulated Electric companies. Fortis is the larger, with a market value of $31.3B against $28.1B — 1.1× the size. DTE Energy Company trades at the lower P/E: 20.5× against 23.2×. DTE Energy Company grew revenue faster over the last twelve months: 12.4% against 5.16%. Fortis has the higher net margin (14.3% vs 8.21%) and the lower return on invested capital (3.51% vs 3.63%). Both pay a dividend; DTE Energy Company yields more (3.46% vs 3.02%). Across the 22 metrics below, DTE Energy Company leads on 14 and Fortis on 8.

Valuation

Metric DTE FTS Utilities Regulated Electric median
P/E 20.48 23.19 19.45
P/S 1.68 3.47 2.78
P/B 2.21 1.66 1.82
Price to free cash flow n/m n/m 45.34
EV/EBITDA 13.10 13.99 12.40
EV/Sales 3.27 6.32 4.95
Earnings yield 4.88% 4.31% 5.12%
Free cash flow yield (6.37%) (4.84%) (5.93%)

Profitability

Metric DTE FTS Utilities Regulated Electric median
Gross margin 0.00% 45.49% 62.00%
Operating margin 13.06% 28.44% 21.72%
Net margin 8.21% 14.32% 13.45%
Free cash flow margin 20.97% (16.82%) (11.71%)
Return on equity 11.02% 7.04% 9.94%
Return on assets 2.50% 2.30% 2.85%
Return on invested capital 3.63% 3.51% 3.95%

Growth

Metric DTE FTS Utilities Regulated Electric median
Revenue growth (TTM) 12.43% 5.16% 7.78%
EPS growth (last fiscal year) 3.84% 3.09% 6.01%
Revenue growth, 5-year CAGR 6.72% 5.48% 6.72%
Net income growth, 5-year CAGR 1.34% 6.33% 6.50%

Health

Metric DTE FTS Utilities Regulated Electric median
Debt to equity 1.97 1.35 1.54
Current ratio 0.62 0.69 0.88
Net debt to EBITDA 6.02 6.17 5.27

Dividend

Metric DTE FTS Utilities Regulated Electric median
Dividend yield 3.46% 3.02% 3.16%
Payout ratio 0.71 0.70 0.63

Size

Metric DTE FTS Utilities Regulated Electric median
Market cap 28.06b 31.26b 26.54b

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