Analyzing DTE Energy (NYSE:DTE) and Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY)

DTE Energy (NYSE:DTE) and Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY) are both large-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Profitability

This table compares DTE Energy and Terna Rete Elettrica Nazionale’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DTE Energy	10.16%	12.72%	3.01%
Terna Rete Elettrica Nazionale	N/A	N/A	N/A

Earnings and Valuation

This table compares DTE Energy and Terna Rete Elettrica Nazionale”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DTE Energy	$14.82 billion	1.93	$1.40 billion	$6.66	20.64
Terna Rete Elettrica Nazionale	N/A	N/A	N/A	N/A	N/A

DTE Energy has higher revenue and earnings than Terna Rete Elettrica Nazionale.

Dividends

DTE Energy pays an annual dividend of $4.36 per share and has a dividend yield of 3.2%. Terna Rete Elettrica Nazionale pays an annual dividend of $1.29 per share and has a dividend yield of 4.1%. DTE Energy pays out 65.5% of its earnings in the form of a dividend. DTE Energy has raised its dividend for 16 consecutive years.

Risk and Volatility

DTE Energy has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Terna Rete Elettrica Nazionale has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Institutional and Insider Ownership

76.1% of DTE Energy shares are held by institutional investors. 0.3% of DTE Energy shares are held by 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for DTE Energy and Terna Rete Elettrica Nazionale, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DTE Energy	0	6	7	1	2.64
Terna Rete Elettrica Nazionale	1	1	1	0	2.00

DTE Energy presently has a consensus target price of $149.25, indicating a potential upside of 8.57%. Given DTE Energy’s stronger consensus rating and higher possible upside, analysts clearly believe DTE Energy is more favorable than Terna Rete Elettrica Nazionale.

Summary

DTE Energy beats Terna Rete Elettrica Nazionale on 11 of the 14 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 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.

About Terna Rete Elettrica Nazionale

Terna S.p.A., together with its subsidiaries, provides electricity transmission and dispatching services in Italy, other Euro-area countries, and internationally. It operates through Regulated, Non-Regulated, and International segments. The company is involved in the design, construction, management, development, operation, and maintenance of national transmission grid; dispatching and metering; and construction of storage systems. It also supplies transformers and cables; provides energy and connectivity services; and installs and operates interconnecting lines. In addition, the company designs, produces, commercializes, and repairs power transformers for electricity transmission and distribution grids; industrial transformers for the steel and metals industries; special transformers for convertors used in electrochemical production; produces and sells marine and terrestrial cables; develops renewable energy projects; and undertakes private interconnector projects. Terna S.p.A. was founded in 1962 and is based in Rome, Italy.