Analyzing DTE Energy (NYSE:DTE) & Sky Solar (NYSE:SKYS)

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

Insider and Institutional Ownership

73.3% of DTE Energy shares are owned by institutional investors. Comparatively, 1.3% of Sky Solar shares are owned by institutional investors. 0.6% of DTE Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares DTE Energy and Sky Solar’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DTE Energy $12.67 billion 1.81 $1.17 billion $6.30 18.90
Sky Solar $48.95 million 2.58 -$42.06 million N/A N/A

DTE Energy has higher revenue and earnings than Sky Solar.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DTE Energy 0 6 8 0 2.57
Sky Solar 0 0 0 0 N/A

DTE Energy currently has a consensus target price of $126.86, indicating a potential upside of 6.57%. Given DTE Energy’s higher probable upside, equities research analysts plainly believe DTE Energy is more favorable than Sky Solar.

Risk & Volatility

DTE Energy has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Sky Solar has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
DTE Energy 10.13% 10.50% 2.93%
Sky Solar N/A N/A N/A

Summary

DTE Energy beats Sky Solar on 9 of the 11 factors compared between the two stocks.

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 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.

About Sky Solar

Sky Solar Holdings, Ltd., an investment holding company, operates as an independent power producer worldwide. The company develops, owns, and operates solar parks primarily in the downstream solar market. It also sells solar energy systems, including pipeline; and engineering, construction, and procurement services, as well as engages in building and transferring solar parks. As of December 31, 2017, the company developed 318 solar parks with an aggregate capacity of 377.2 megawatts (MW) in Japan, Bulgaria, the Czech Republic, Spain, Canada, the United States, and Uruguay; and owned and operated 196.7 MW of solar parks, including 96.3 MW in Japan, 5.6 MW in the Czech Republic, 0.2 MW in Canada, 0.9 MW in Spain, 22.1 MW in the United States, and 71.6 MW in Uruguay. It also had approximately 400 MW of solar projects in various stages of development in countries, such as Chile, Japan, Canada, and the United States comprising 6.6 MW under construction, 180.1 MW of shovel-ready projects, and approximately 250 MW of solar parks in pipeline. The company has strategic partnership agreement with Hudson Clean Energy Partners for investing in renewable power and clean energy. Sky Solar Holdings, Ltd. was founded in 2009 and is headquartered in Admiralty, Hong Kong.

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