DTE Energy (NYSE:DTE) vs. Iren (OTCMKTS:IRDEY) Critical Contrast

Iren (OTCMKTS:IRDEY) and DTE Energy (NYSE:DTE) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Iren	N/A	N/A	N/A
DTE Energy	8.00%	12.19%	2.74%

Analyst Ratings

This is a summary of current recommendations and price targets for Iren and DTE Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iren	0	0	0	0	0.00
DTE Energy	0	5	9	1	2.73

DTE Energy has a consensus target price of $158.62, suggesting a potential upside of 13.93%. Given DTE Energy’s stronger consensus rating and higher probable upside, analysts plainly believe DTE Energy is more favorable than Iren.

Earnings & Valuation

This table compares Iren and DTE Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iren	N/A	N/A	N/A	$0.61	47.49
DTE Energy	$15.81 billion	1.83	$1.46 billion	$6.32	22.03

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

Dividends

Iren pays an annual dividend of $0.38 per share and has a dividend yield of 1.3%. DTE Energy pays an annual dividend of $4.66 per share and has a dividend yield of 3.3%. Iren pays out 62.8% of its earnings in the form of a dividend. DTE Energy pays out 73.7% 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 increased its dividend for 16 consecutive years. DTE Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

76.1% 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 Iren on 13 of the 15 factors compared between the two stocks.

About Iren

Iren SpA, together with its subsidiaries, operates as a multi-utility company in Italy. It operates through Networks, Waste Management, Energy, Market, and Other Services segments. The company produces and distributes electricity primarily from hydroelectric, thermoelectric, cogeneration, and other renewables, as well as distributes natural gas. It distributes electrical energy through 7,872 kilometers of medium and low voltage networks to approximately 729,000 connected users; and natural gas through its network of approximately 8,160 kilometers of high, medium, and low-pressure pipes to approximately 738,000 customers. The company also operates integrated water cycle, which includes 20,358 kilometers of pipeline networks that serve 2.9 million residents; 11,279 kilometers of sewerage networks; and operates treatment plants. In addition, it is involved in the provision of services related to street lighting systems, traffic light systems, heating systems, and electrical and special systems; collection and disposal of waste; snow clearing services; and analysis laboratories, telecommunications, and other services. It operates 35 hydroelectric plants, 7 thermoelectric cogeneration systems, and 1 thermoelectric plant, as well as 105 photovoltaic production plants with an installed capacity of 142 MW. Iren SpA is based in Reggio Emilia, Italy.

About DTE Energy

DTE Energy Company engages in the utility operations. The company's Electric segment generates, purchases, distributes, and sells electricity to various residential, commercial, and industrial customers in southeastern Michigan. It generates electricity through coal-fired plants, hydroelectric pumped storage, and nuclear plants, as well as wind and solar assets. This segment owns and operates distribution substations and line transformers. The company's Gas segment purchases, stores, transports, distributes, and sells natural gas to various residential, commercial, and industrial customers throughout Michigan; and sells storage and transportation capacity. Its DTE Vantage segment offers metallurgical and petroleum coke to steel and other industries; and power generation, steam production, chilled water production, and wastewater treatment services, as well as air supplies compressed air to industrial customers. Its Energy Trading segment engages in power, natural gas, and environmental marketing and trading; structured transactions; and the optimization of contracted natural gas pipeline transportation and storage positions. The company was founded in 1849 and is based in Detroit, Michigan.