Comparing MDU Resources Group (NYSE:MDU) & DTE Energy (NYSE:DTE)

MDU Resources Group (NYSE:MDU) and DTE Energy (NYSE:DTE) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for MDU Resources Group and DTE Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDU Resources Group	0	4	3	0	2.43
DTE Energy	0	5	9	1	2.73

MDU Resources Group presently has a consensus price target of $23.40, indicating a potential upside of 18.09%. DTE Energy has a consensus price target of $157.00, indicating a potential upside of 15.40%. Given MDU Resources Group’s higher probable upside, equities analysts clearly believe MDU Resources Group is more favorable than DTE Energy.

Volatility and Risk

MDU Resources Group has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, DTE Energy has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MDU Resources Group	10.75%	6.89%	2.58%
DTE Energy	8.00%	12.19%	2.74%

Dividends

MDU Resources Group pays an annual dividend of $0.56 per share and has a dividend yield of 2.8%. DTE Energy pays an annual dividend of $4.66 per share and has a dividend yield of 3.4%. MDU Resources Group pays out 58.9% of its earnings in the form of a dividend. DTE Energy pays out 73.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. MDU Resources Group has increased its dividend for 1 consecutive years and 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.

Earnings & Valuation

This table compares MDU Resources Group 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
MDU Resources Group	$1.88 billion	2.16	$190.40 million	$0.95	20.86
DTE Energy	$16.46 billion	1.72	$1.46 billion	$6.32	21.53

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

Insider & Institutional Ownership

71.4% of MDU Resources Group shares are owned by institutional investors. Comparatively, 76.1% of DTE Energy shares are owned by institutional investors. 0.5% of MDU Resources Group shares are owned by company insiders. Comparatively, 0.6% of DTE Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

DTE Energy beats MDU Resources Group on 13 of the 18 factors compared between the two stocks.

About MDU Resources Group

MDU Resources Group, Inc. engages in the regulated energy delivery, and construction materials and services businesses in the United States. It operates through four segments: Electric, Natural Gas Distribution, Pipeline, and Construction Services. The Electric segment generates, transmits, and distributes electricity for residential, commercial, industrial, and municipal customers in Montana, North Dakota, South Dakota, and Wyoming; and operates 3,400 miles of transmission lines, 4,800 miles of distribution lines, and 82 transmission and 298 distribution substations. The Natural Gas Distribution segment distributes natural gas for residential, commercial, and industrial customers in Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota, Washington, and Wyoming; and supplies related value-added services. The Pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions; and cathodic protection and other energy-related services. The Construction Services segment offers electrical and mechanical contracting services, including the construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, mechanical piping, and services; transmission and distribution contracting services, comprise construction and maintenance of overhead and underground electrical, and gas and communication infrastructure; and manufactures and supplies transmission and distribution lines construction equipment and tools. It serves manufacturing, commercial, industrial, transportation, institutional, and renewable and government customers, as well as utilities. MDU Resources Group, Inc. was incorporated in 1924 and is headquartered in Bismarck, North Dakota.

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.