DTE Energy Company (DTE) vs Fortis (FTS)

DTE Energy Company and Fortis are both Utilities Regulated Electric companies. DTE Energy Company and Fortis are of similar size ($26.9B and $25.2B). DTE Energy Company trades at the lower P/E: 19.1× against 21.5×. DTE Energy Company grew revenue faster over the last twelve months: 15.9% against 5.32%. Fortis has the higher net margin (14.0% vs 8.00%) and the higher return on invested capital (3.46% vs 3.46%). Both pay a dividend; Fortis yields more (4.35% vs 3.94%). Across the 21 metrics below, DTE Energy Company leads on 13 and Fortis on 8.

Valuation

Metric DTE FTS Utilities Regulated Electric median
P/E 19.13 21.49 18.84
P/S 1.53 3.03 2.52
P/B 2.08 1.45 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 12.66 13.13 11.82
EV/Sales 3.20 5.93 4.58
Earnings yield 5.23% 4.65% 5.30%
Free cash flow yield (7.61%) (5.50%) (5.06%)

Profitability

Metric DTE FTS Utilities Regulated Electric median
Gross margin 44.43% 45.34% 66.28%
Operating margin 13.32% 28.32% 21.79%
Net margin 8.00% 14.00% 12.94%
Free cash flow margin (11.66%) (16.64%) (11.51%)
Return on equity 11.03% 6.96% 9.75%
Return on assets 2.47% 2.29% 2.75%
Return on invested capital 3.46% 3.46% 3.87%

Growth

Metric DTE FTS Utilities Regulated Electric median
Revenue growth (TTM) 15.94% 5.32% 7.43%
EPS growth (last fiscal year) 3.84% 3.09% —
Revenue growth, 5-year CAGR 6.72% 5.48% 6.75%
Net income growth, 5-year CAGR 1.34% 6.33% 6.44%

Health

Metric DTE FTS Utilities Regulated Electric median
Debt to equity 2.27 1.32 1.53
Current ratio 0.80 0.56 0.81
Net debt to EBITDA 6.02 6.17 5.25

Dividend

Metric DTE FTS Utilities Regulated Electric median
Dividend yield 3.94% 4.35% 4.33%
Payout ratio 0.58 0.75 0.66

Size

Metric DTE FTS Utilities Regulated Electric median
Market cap 25.22b 26.90b 22.90b

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