Financial Analysis: Vistra Energy (VST) and DTE Energy (DTE)
Vistra Energy (NYSE: DTE) and DTE Energy (NYSE:DTE) are both large-cap utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.
DTE Energy pays an annual dividend of $3.53 per share and has a dividend yield of 3.1%. Vistra Energy does not pay a dividend. DTE Energy pays out 63.1% of its earnings in the form of a dividend. DTE Energy has raised its dividend for 6 consecutive years.
Vistra Energy has a beta of -0.17, suggesting that its share price is 117% less volatile than the S&P 500. Comparatively, DTE Energy has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Vistra Energy and DTE Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Vistra Energy currently has a consensus target price of $24.39, suggesting a potential upside of 4.45%. DTE Energy has a consensus target price of $112.00, suggesting a potential downside of 1.55%. Given Vistra Energy’s stronger consensus rating and higher probable upside, research analysts plainly believe Vistra Energy is more favorable than DTE Energy.
Institutional & Insider Ownership
70.9% of DTE Energy shares are held by institutional investors. 15.7% of Vistra Energy shares are held by insiders. Comparatively, 0.6% of DTE Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Vistra Energy and DTE Energy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vistra Energy||$5.43 billion||2.23||-$254.00 million||$0.96||24.32|
|DTE Energy||$12.61 billion||1.64||$1.13 billion||$5.59||20.35|
DTE Energy has higher revenue and earnings than Vistra Energy. DTE Energy is trading at a lower price-to-earnings ratio than Vistra Energy, indicating that it is currently the more affordable of the two stocks.
This table compares Vistra Energy and DTE Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
DTE Energy beats Vistra Energy on 10 of the 17 factors compared between the two stocks.
About Vistra Energy
Vistra Energy Corp., through its subsidiaries, engages in the integrated power business in Texas. The company operates through Wholesale Generation and Retail Electricity segments. The Wholesale Generation segment engages in the electricity generation, wholesale energy sales and purchases, commodity risk management, fuel production, and fuel logistics management activities. As of February 26, 2018, this segment had a fleet of generation facilities totaling approximately 14,000 megawatts of generation in Texas, including 2,300 megawatts fueled by nuclear power, 4,000 megawatts fueled by coal, and 7,500 megawatts fueled by natural gas. The Retail Electricity segment is involved in the retail sale of electricity and related services to residential, commercial, and industrial customers under the TXU Energy brand. This segment served approximately 1.7 million residential and business customers. The company was formerly known as TCEH Corp. and changed its name to Vistra Energy Corp. in November 2016. The company is based in Irving, Texas.
About DTE Energy
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 692 distribution substations and 440,500 line transformers. Its Gas segment purchases, stores, transports, distributes, and sells natural gas to approximately 1.3 million residential, commercial, and industrial customers in Michigan, as well as the sells storage and transportation capacity. This segment has approximately 19,500 miles of distribution mains; 1,216,000 service pipelines; and 1,262,000 active meters, as well as owns approximately 2,000 miles of transmission pipelines. The company's 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. Its Power and Industrial Projects segment provides 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; 21 landfill gas recovery sites; and 11 reduced emissions fuel facilities. The company's Energy Trading segment is involved in power and gas marketing and trading; structured transactions; and the optimization of contracted natural gas pipeline transportation and storage positions. DTE Energy Company was founded in 1903 and is headquartered in Detroit, Michigan.
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