Avista (NYSE:AVA) & DTE Energy (NYSE:DTE) Head-To-Head Comparison

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

Earnings & Valuation

This table compares Avista 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
Avista	$1.94 billion	1.53	$180.00 million	$2.34	15.69
DTE Energy	$12.46 billion	2.32	$1.40 billion	$6.95	20.03

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avista	9.63%	7.28%	2.39%
DTE Energy	10.16%	12.72%	3.01%

Risk & Volatility

Avista has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, DTE Energy has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Avista and DTE Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avista	1	1	0	0	1.50
DTE Energy	0	5	10	0	2.67

Avista currently has a consensus target price of $38.00, indicating a potential upside of 3.51%. DTE Energy has a consensus target price of $141.5333, indicating a potential upside of 1.69%. Given Avista’s higher probable upside, equities research analysts plainly believe Avista is more favorable than DTE Energy.

Institutional & Insider Ownership

85.2% of Avista shares are held by institutional investors. Comparatively, 76.1% of DTE Energy shares are held by institutional investors. 1.0% of Avista shares are held by company insiders. Comparatively, 0.3% 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.

Dividends

Avista pays an annual dividend of $1.96 per share and has a dividend yield of 5.3%. DTE Energy pays an annual dividend of $4.36 per share and has a dividend yield of 3.1%. Avista pays out 83.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DTE Energy pays out 62.7% of its earnings in the form of a dividend. Avista has increased its dividend for 23 consecutive years and DTE Energy has increased its dividend for 16 consecutive years. Avista is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

DTE Energy beats Avista on 12 of the 17 factors compared between the two stocks.

About Avista

Avista Corporation, together with its subsidiaries, operates as an electric and natural gas utility company. It operates in two segments, Avista Utilities and AEL&P. The Avista Utilities segment provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho; and natural gas distribution services in parts of northeastern and southwestern Oregon, as well as generates electricity in Washington, Idaho, Oregon, and Montana. This segment also engages in the supply of electricity to customers in Montana; and wholesale purchase and sale of electricity and natural gas. The AEL&P segment offers electric services in Juneau, Alaska. The company generates electricity through hydroelectric, thermal, wind, and solar generation facilities. As of December 31, 2023, it supplied retail electric services to approximately 416,000 customers; and retail natural gas services to approximately 381,000 customers. The company also operates five hydroelectric generation facilities with capacity of 102.7 MW; and four diesel generating facilities with a capacity of 107.5 MW. It also engages in venture fund investments, real estate investments, and other investments. Avista Corporation was incorporated in 1889 and is headquartered in Spokane, Washington.

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.