DTE Energy vs Consumers Energy Which Is More Lucrative?

DTE Energy and Consumers Energy are two major players in the utility industry, both based in Michigan and serving millions of customers across the state. While DTE Energy focuses on providing electricity and natural gas services, Consumers Energy primarily provides electricity to residential and commercial customers. Both companies have seen steady growth in their stock prices over the years, with DTE Energy being the larger of the two in terms of market capitalization. Investors looking to add utility stocks to their portfolio may find these two companies worth considering for their stability and potential for long-term growth.

DTE Energy or Consumers Energy?

When comparing DTE Energy and Consumers Energy, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between DTE Energy and Consumers Energy.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. DTE Energy has a dividend yield of 4.26%, while Consumers Energy has a dividend yield of 2.25%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. DTE Energy reports a 5-year dividend growth of 1.54% year and a payout ratio of 51.93%. On the other hand, Consumers Energy reports a 5-year dividend growth of 0.00% year and a payout ratio of 58.64%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with DTE Energy P/E ratio at 16.19 and Consumers Energy's P/E ratio at 19.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. DTE Energy P/B ratio is 2.14 while Consumers Energy's P/B ratio is 1.87.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, DTE Energy has seen a 5-year revenue growth of -0.21%, while Consumers Energy's is 0.05%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DTE Energy's ROE at 13.63% and Consumers Energy's ROE at 12.16%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $117.77 for DTE Energy and $80.67 for Consumers Energy. Over the past year, DTE Energy's prices ranged from $97.43 to $131.67, with a yearly change of 35.14%. Consumers Energy's prices fluctuated between $77.00 and $94.87, with a yearly change of 23.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.