Reviewing Power Assets (OTCMKTS:HGKGY) & DTE Energy (NYSE:DTE)

DTE Energy (NYSE:DTE) and Power Assets (OTCMKTS:HGKGY) are both large-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares DTE Energy and Power Assets”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	1.92	$1.40 billion	$6.66	20.58
Power Assets	$117.77 million	116.35	$784.46 million	N/A	N/A

DTE Energy has higher revenue and earnings than Power Assets.

Volatility and Risk

DTE Energy has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Power Assets has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DTE Energy	0	6	7	1	2.64
Power Assets	0	0	0	0	0.00

DTE Energy currently has a consensus target price of $149.25, indicating a potential upside of 8.89%. Given DTE Energy’s stronger consensus rating and higher possible upside, research analysts clearly believe DTE Energy is more favorable than Power Assets.

Profitability

This table compares DTE Energy and Power Assets’ 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%
Power Assets	N/A	N/A	N/A

Insider and Institutional Ownership

76.1% of DTE Energy shares are held by institutional investors. 0.3% of DTE Energy shares are held by company insiders. Comparatively, 1.0% of Power Assets shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

DTE Energy pays an annual dividend of $4.36 per share and has a dividend yield of 3.2%. Power Assets pays an annual dividend of $0.16 per share and has a dividend yield of 2.5%. DTE Energy pays out 65.5% of its earnings in the form of a dividend. DTE Energy has increased its dividend for 16 consecutive years. DTE Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

DTE Energy beats Power Assets on 13 of the 16 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 Power Assets

Power Assets Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally. It generates energy from thermal, renewable energy, and waste sources. The company also transmits and distributes oil and gas; and provides trust administration and management services. It has a generation capacity of 879 MW renewable energy/energy from waste, 5,262 MW gas fired, and 3,567 MW coal/oil fired; and operates 114,900 km of gas/oil pipeline, as well as 388,200 km of power network serving 19,790,000 customers. The company was formerly known as Hongkong Electric Holdings Limited and changed its name to Power Assets Holdings Limited in February 2011. Power Assets Holdings Limited was founded in 1889 and is based in Central, Hong Kong.