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

Valuation and Earnings

This table compares Premier 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
Premier $4.79 million 1.39 -$5.59 million N/A N/A
DTE Energy $12.61 billion 1.40 $1.13 billion $5.59 17.36

DTE Energy has higher revenue and earnings than Premier.

Analyst Recommendations

This is a summary of recent ratings and price targets for Premier and DTE Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 0 0 0 0 N/A
DTE Energy 1 5 3 0 2.22

DTE Energy has a consensus price target of $108.56, suggesting a potential upside of 11.84%. Given DTE Energy’s higher probable upside, analysts plainly believe DTE Energy is more favorable than Premier.

Risk and Volatility

Premier has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500. Comparatively, DTE Energy has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.

Dividends

DTE Energy pays an annual dividend of $3.53 per share and has a dividend yield of 3.6%. Premier 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Premier -255.86% -164.85% -98.60%
DTE Energy 8.34% 10.27% 3.06%

Institutional and Insider Ownership

70.6% of DTE Energy shares are owned by institutional investors. 39.3% of Premier shares are owned by company insiders. Comparatively, 0.6% of DTE Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

DTE Energy beats Premier on 11 of the 14 factors compared between the two stocks.

Premier Company Profile

Premier Holding Corporation, through its subsidiaries, provides energy efficiency products and services primarily to commercial middle market companies and residential customers in the United States. The company offers various electricity plans and upgrades to a facility's energy infrastructure. It also offers deregulated power brokerage services. The company was formerly known as OVM International Holding Corporation and changed its name to Premier Holding Corporation in November 2008. Premier Holding Corporation was founded in 1971 and is based in Tustin, California.

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 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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