Financial Comparison: CENTRICA PLC/S (OTCMKTS:CPYYY) and DTE Energy (OTCMKTS:DTE)

CENTRICA PLC/S (OTCMKTS:CPYYY) and DTE Energy (NYSE:DTE) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for CENTRICA PLC/S and DTE Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CENTRICA PLC/S 1 7 3 0 2.18
DTE Energy 0 4 5 0 2.56

DTE Energy has a consensus target price of $137.56, suggesting a potential upside of 2.64%. Given DTE Energy’s stronger consensus rating and higher possible upside, analysts plainly believe DTE Energy is more favorable than CENTRICA PLC/S.

Dividends

CENTRICA PLC/S pays an annual dividend of $0.14 per share and has a dividend yield of 3.7%. DTE Energy pays an annual dividend of $4.05 per share and has a dividend yield of 3.0%. CENTRICA PLC/S pays out 23.7% of its earnings in the form of a dividend. DTE Energy pays out 64.3% 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 raised its dividend for 8 consecutive years. CENTRICA PLC/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares CENTRICA PLC/S and DTE Energy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CENTRICA PLC/S $39.62 billion 0.13 $244.27 million $0.59 6.37
DTE Energy $12.67 billion 2.03 $1.17 billion $6.30 21.27

DTE Energy has lower revenue, but higher earnings than CENTRICA PLC/S. CENTRICA PLC/S is trading at a lower price-to-earnings ratio than DTE Energy, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

CENTRICA PLC/S has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, DTE Energy has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500.

Profitability

This table compares CENTRICA PLC/S and DTE Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CENTRICA PLC/S N/A N/A N/A
DTE Energy 9.23% 10.52% 3.04%

Insider & Institutional Ownership

0.2% of CENTRICA PLC/S shares are held by institutional investors. Comparatively, 70.2% of DTE Energy shares are held by institutional investors. 0.6% of DTE Energy shares are held 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.

Summary

DTE Energy beats CENTRICA PLC/S on 13 of the 17 factors compared between the two stocks.

CENTRICA PLC/S Company Profile

Centrica plc operates as an integrated energy company in the United Kingdom, the Republic of Ireland, Germany, Norway, rest of Europe, the United States, Canada, and internationally. The company operates through Centrica Consumer, Centrica Business, and Exploration & Production segments. It supplies gas and electricity to residential customers, as well as offers energy-related services; and generates power from combined cycle gas turbines and nuclear assets. The company also provides installation, repair, and maintenance services for domestic central heating, plumbing and drains, and gas and kitchen appliances; heating, ventilation, and air conditioning equipment; and water heaters, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; and supplies energy efficiency solutions and technologies to residential customers. Further, the company produces and processes gas and oil; develops new fields to maintain reserves; constructs, owns, and exploits infrastructure; and engages in the social enterprise investment fund activities. Additionally, it provides vehicle leasing, commercial, and insurance services, as well as energy management products and services; and operates a gas storage, and franchise network. The company also provides sea freight water transport services. It primarily supplies energy and services to approximately 25 million customers under the British Gas, Direct Energy, and Bord Gáis Energy brands. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was incorporated in 1995 and is headquartered in Windsor, the United Kingdom.

DTE Energy Company Profile

DTE Energy Company engages in the utility operations. The company's Electric segment generates, purchases, distributes, and sells electricity to approximately 2.2 million residential, commercial, and industrial customers in southeastern Michigan. It generates electricity through fossil-fuel, hydroelectric pumped storage, and nuclear plants, as well as wind and other renewable assets. This segment owns and operates approximately 696 distribution substations and 442,700 line transformers. The company's Gas segment purchases, stores, transports, distributes, and sells natural gas to approximately 1.3 million residential, commercial, and industrial customers throughout Michigan; and sells storage and transportation capacity. This segment has approximately 19,800 miles of distribution mains; 1,305,000 service pipelines; and 1,273,000 active meters, as well as owns approximately 2,000 miles of transmission pipelines. Its Gas Storage and Pipelines segment owns natural gas storage fields, lateral and gathering pipeline systems, and compression and surface facilities, as well as has ownership interests in interstate pipelines serving the Midwest, Ontario, and northeast markets. The company's Power and Industrial Projects segment offers metallurgical coke; pulverized coal and petroleum coke to the steel, pulp and paper, and other industries; and power, steam and chilled water production, and wastewater treatment services, as well as supplies compressed air to industrial customers. It also owns and operates 5 renewable generating plants with a capacity of 217 MWs; 23 landfill gas recovery sites; and 10 reduced emissions fuel facilities. Its Energy Trading segment engages in power and gas marketing and trading; structured transactions; and the optimization of contracted natural gas pipeline transportation and storage positions. The company was founded in 1903 and is headquartered in Detroit, Michigan.

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