DTE Energy (DTE) & IDACORP (IDA) Financial Review

IDACORP (NYSE: IDA) and DTE Energy (NYSE:DTE) are both mid-cap utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Volatility and Risk

IDACORP has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, DTE Energy has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500.

Profitability

This table compares IDACORP and DTE Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IDACORP 15.31% 9.20% 3.20%
DTE Energy 8.01% 9.62% 2.86%

Analyst Ratings

This is a summary of recent ratings and recommmendations for IDACORP and DTE Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IDACORP 0 1 0 0 2.00
DTE Energy 1 3 3 0 2.29

DTE Energy has a consensus price target of $112.43, suggesting a potential upside of 2.10%. Given DTE Energy’s stronger consensus rating and higher possible upside, analysts plainly believe DTE Energy is more favorable than IDACORP.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
IDACORP $1.30 billion 3.55 $438.95 million $3.96 23.14
DTE Energy $11.89 billion 1.66 $2.50 billion $5.46 20.17

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

Insider & Institutional Ownership

75.9% of IDACORP shares are owned by institutional investors. Comparatively, 68.6% of DTE Energy shares are owned by institutional investors. 0.7% of IDACORP shares are owned by insiders. Comparatively, 0.5% of DTE Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

IDACORP pays an annual dividend of $2.20 per share and has a dividend yield of 2.4%. DTE Energy pays an annual dividend of $3.30 per share and has a dividend yield of 3.0%. IDACORP pays out 55.6% of its earnings in the form of a dividend. DTE Energy pays out 60.4% 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. IDACORP has increased its dividend for 5 consecutive years and DTE Energy has increased its dividend for 5 consecutive years.

IDACORP Company Profile

IDACORP, Inc. is a holding company. The Company’s principal operating subsidiary is Idaho Power Company (Idaho Power). The Company’s segment is utility operations. The utility operations segment’s primary source of revenue is the regulated operations of Idaho Power. Idaho Power is an electric utility engaged in the generation, transmission, distribution, sale and purchase of electric energy and capacity. Idaho Power is the parent of Idaho Energy Resources Co. (IERCo), a joint venturer in Bridger Coal Company, which mines and supplies coal to the Jim Bridger generating plant owned in part by Idaho Power. Its subsidiaries also include IDACORP Financial Services, Inc., an investor in affordable housing and other real estate investments, and Ida-West Energy Company, an operator of small hydroelectric generation projects. As of December 31, 2016, Idaho Power provided electric utility service to approximately 535,000 general business customers in southern Idaho and eastern Oregon.

DTE Energy Company Profile

DTE Energy Company is an energy company. Its segments include Electric, which consists of DTE Electric Company, which is engaged in the generation, purchase, distribution and sale of electricity to residential, commercial and industrial customers in southeastern Michigan; Gas, which consists of DTE Gas Company, which is engaged in the purchase, storage, transportation, distribution and sale of natural gas to residential, commercial and industrial customers throughout Michigan; Gas Storage and Pipelines, which consists of natural gas pipeline, gathering and storage businesses; Power and Industrial Projects, which consists of projects that deliver energy and utility-type products and services to industrial, commercial and institutional customers, and sell electricity from renewable energy projects; Energy Trading, which consists of energy marketing and trading operations, and Corporate and Other, which includes various holding company activities and holds certain non-utility debt.

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