Financial Analysis: DTE Energy (NYSE:DTE) versus Eurosite Power (OTCMKTS:EUSP)

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

Analyst Recommendations

This is a breakdown of current recommendations for DTE Energy and Eurosite Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DTE Energy	0	5	7	1	2.69
Eurosite Power	0	0	0	0	0.00

DTE Energy presently has a consensus price target of $149.17, suggesting a potential upside of 14.51%. Given DTE Energy’s stronger consensus rating and higher possible upside, analysts clearly believe DTE Energy is more favorable than Eurosite Power.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DTE Energy	$12.46 billion	2.17	$1.40 billion	$6.66	19.56
Eurosite Power	$6.99 million	0.74	-$70,000.00	($0.09)	-0.67

DTE Energy has higher revenue and earnings than Eurosite Power. Eurosite Power 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 DTE Energy and Eurosite Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DTE Energy	9.34%	12.63%	2.99%
Eurosite Power	-113.01%	-12.75%	-12.08%

Insider & Institutional Ownership

76.1% of DTE Energy shares are held by institutional investors. 0.3% of DTE Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

DTE Energy has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Eurosite Power has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500.

Summary

DTE Energy beats Eurosite Power on 15 of the 15 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 Eurosite Power

EuroSite Power Inc., owns, operates, and distributes on-site energy systems in the United Kingdom and Europe. Its energy systems produces and supplies electricity, heat, hot water, and cooling solutions to commercial and industrial customers, such as healthcare facilities, hotels, multi-family hotels, multi-family residential buildings, leisure centers, industrial buildings, and schools and colleges. The company was founded in 2010 and is headquartered in Waltham, Massachusetts.