Pacific Gas & Electric Co. (PCG) and DTE Energy Company (DTE) both operate in the regulated electric utility sector, serving millions of customers with electricity and natural gas. While PCG focuses on northern and central California, DTE primarily serves southeastern Michigan, yet both emphasize innovation in clean energy and grid modernization. This comparison explores their market positioning and strategies to help you identify which company holds the most promise for your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between Pacific Gas & Electric Co. and DTE Energy Company by providing an overview of these two companies and their main differences.
Pacific Gas & Electric Co. Overview
Pacific Gas & Electric Co. operates as a regulated electric utility serving northern and central California. The company generates, transmits, distributes, and sells electricity and natural gas through a diverse mix of nuclear, hydroelectric, fossil fuel, and photovoltaic sources. It also develops innovative energy solutions like personal microgrid backup power devices integrated with its SmartMeter system, positioning itself as a comprehensive energy provider.
DTE Energy Company Overview
DTE Energy Company is a utility firm serving southeastern Michigan with electricity and natural gas distribution. It operates a broad portfolio of generation assets including fossil fuel, hydroelectric pumped storage, nuclear, wind, and other renewables. The company also offers industrial products and energy trading services, supporting over 3.6 million combined gas and electric customers with extensive infrastructure and diversified energy operations.
Key similarities and differences
Both companies operate in the regulated electric utility sector in the US, emphasizing electricity generation, distribution, and natural gas services. PG&E focuses on northern and central California with a strong emphasis on renewable integration and advanced metering technology, while DTE covers southeastern Michigan with a broader energy portfolio that includes industrial products and energy trading. DTE maintains a smaller workforce but offers more diverse operational segments compared to PG&E.
Income Statement Comparison
The table below presents a side-by-side comparison of key income statement metrics for Pacific Gas & Electric Co. and DTE Energy Company for the fiscal year 2024.
| Metric | Pacific Gas & Electric Co. (PCG) | DTE Energy Company (DTE) |
|---|---|---|
| Market Cap | 34.8B USD | 27.0B USD |
| Revenue | 24.4B USD | 12.5B USD |
| EBITDA | 9.9B USD | 4.1B USD |
| EBIT | 5.4B USD | 2.3B USD |
| Net Income | 2.5B USD | 1.4B USD |
| EPS | 1.16 USD | 6.78 USD |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Pacific Gas & Electric Co.
Pacific Gas & Electric Co. (PCG) displayed strong revenue growth of 32.22% from 2020 to 2024, with net income surging nearly 293% over the same period. Margins improved substantially, including a gross margin of 37.5% and an EBIT margin of 21.96% in 2024. Despite a slight 0.04% revenue decline in 2024, earnings growth accelerated, supported by a 51.11% EBIT increase and a net margin rise to 10.29%.
DTE Energy Company
DTE Energy Company (DTE) experienced more modest revenue growth of 9.05% from 2020 to 2024, with net income growing 2.41%, and a stable gross margin near 34.82%. However, DTE faced a 2.26% revenue decline in 2024 and a slight EBIT drop of 1.53%, while net margin improved marginally to 11.25%. Overall, earnings and margin growth have been less consistent compared to peers.
Which one has the stronger fundamentals?
Pacific Gas & Electric Co. shows stronger fundamentals with significant revenue and net income growth, alongside favorable margin expansion and solid earnings improvement in the latest year. DTE Energy’s fundamentals are mixed, reflecting slower growth, slight margin contraction over the period, and neutral to unfavorable recent earnings trends. PCG’s overall income statement evaluation is markedly more favorable.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Pacific Gas & Electric Co. (PCG) and DTE Energy Company (DTE) based on their most recent available data for fiscal year 2024.
| Ratios | Pacific Gas & Electric Co. (PCG) | DTE Energy Company (DTE) |
|---|---|---|
| ROE | 8.33% | 12.00% |
| ROIC | 3.98% | 4.65% |
| P/E | 17.20 | 17.80 |
| P/B | 1.43 | 2.14 |
| Current Ratio | 1.05 | 0.71 |
| Quick Ratio | 1.00 | 0.46 |
| D/E | 1.94 | 1.99 |
| Debt-to-Assets | 43.7% | 47.6% |
| Interest Coverage | 1.46 | 2.20 |
| Asset Turnover | 0.18 | 0.26 |
| Fixed Asset Turnover | 0.28 | 0.40 |
| Payout ratio | 3.42% | 57.7% |
| Dividend yield | 0.20% | 3.24% |
Interpretation of the Ratios
Pacific Gas & Electric Co.
Pacific Gas & Electric shows mixed financial health with a favorable net margin of 10.29% and a low beta of 0.379, indicating stability. However, its return on equity (8.33%) and return on invested capital (3.98%) are weak, reflecting profitability concerns. The dividend yield is low at 0.2%, suggesting limited income return for shareholders amid cautious payout levels.
DTE Energy Company
DTE Energy presents a slightly stronger profitability profile with an 11.27% net margin and 12% return on equity, although its return on invested capital at 4.65% remains below expectations. The dividend yield of 3.24% is favorable and provides a meaningful income stream. Liquidity ratios are weaker, with current and quick ratios below 1, signaling potential short-term solvency issues.
Which one has the best ratios?
Both companies have slightly unfavorable overall ratio evaluations. Pacific Gas & Electric struggles with weaker returns and dividend yield, while DTE Energy’s stronger earnings and dividend yield are offset by weaker liquidity measures. Each firm exhibits strengths and weaknesses, making the choice dependent on investor priorities rather than clear-cut ratio superiority.
Strategic Positioning
This section compares the strategic positioning of Pacific Gas & Electric Co. (PCG) and DTE Energy Company (DTE), focusing on their market position, key segments, and exposure to technological disruption:
Pacific Gas & Electric Co.
- Large market cap of 34.8B; operates in northern and central California with regulated electric industry pressure.
- Key segments include electricity generation (nuclear, hydro, fossil fuel, photovoltaic) and natural gas distribution.
- Developing smart grid technology like microgrid backup power integrated with SmartMeter; exposed to energy tech innovation.
DTE Energy Company
- Market cap of 27.0B; serves southeastern Michigan with regulated electric industry competition.
- Diverse segments: electric generation, gas distribution, energy trading, industrial projects, and renewables.
- Exposure to renewables, energy trading, and advanced infrastructure including pumped hydro and wind assets.
PCG vs DTE Positioning
PCG has a more geographically concentrated and traditional utility focus on California with integrated smart grid tech, while DTE shows greater diversification across electric, gas, trading, and industrial segments in Michigan. PCG’s scale contrasts with DTE’s broader service portfolio and energy trading capabilities.
Which has the best competitive advantage?
Both companies show slightly unfavorable MOATs with ROIC below WACC but improving profitability trends. PCG has a larger scale and smart grid focus, while DTE benefits from diversified segments and growing returns, indicating nuanced competitive strengths without a clear advantage.
Stock Comparison
The stock price movements of Pacific Gas & Electric Co. and DTE Energy Company over the past year reveal distinct trading dynamics, with PCG showing a moderate decline and DTE demonstrating significant gains followed by recent weakness.
Trend Analysis
Pacific Gas & Electric Co. exhibited a bearish trend over the past 12 months with a price decline of -3.53%, decelerating in momentum. The stock ranged between 13.42 and 21.63, with low volatility at 1.93 std deviation.
DTE Energy Company posted a bullish trend with a 20.49% price increase over the year but showed deceleration. The stock fluctuated widely between 106.25 and 141.95, with higher volatility at 10.2 std deviation.
Comparing both, DTE Energy Company delivered the highest market performance with a 20.49% gain, outperforming Pacific Gas & Electric Co.’s -3.53% loss over the analyzed period.
Target Prices
The target price consensus for Pacific Gas & Electric Co. and DTE Energy Company reflects optimistic analyst expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Pacific Gas & Electric Co. | 25 | 18 | 21.5 |
| DTE Energy Company | 157 | 138 | 148.29 |
Analysts expect significant upside for both utilities, with consensus targets well above current stock prices ($15.85 for PCG and $129.89 for DTE), indicating potential growth opportunities.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for Pacific Gas & Electric Co. (PCG) and DTE Energy Company (DTE):
Rating Comparison
PCG Rating
- Rating: B-, considered very favorable overall.
- Discounted Cash Flow Score: 1, very unfavorable.
- ROE Score: 3, moderate performance.
- ROA Score: 3, moderate performance.
- Debt To Equity Score: 1, very unfavorable.
- Overall Score: 3, moderate standing.
DTE Rating
- Rating: C, considered very favorable overall.
- Discounted Cash Flow Score: 1, very unfavorable.
- ROE Score: 3, moderate performance.
- ROA Score: 2, moderate performance.
- Debt To Equity Score: 1, very unfavorable.
- Overall Score: 2, moderate standing.
Which one is the best rated?
Based strictly on provided data, PCG holds a slightly better overall rating (B-) compared to DTE’s (C), and a higher overall score of 3 versus 2, indicating PCG is better rated in this comparison.
Scores Comparison
Here is a comparison of the financial scores for Pacific Gas & Electric Co. (PCG) and DTE Energy Company (DTE):
PCG Scores
- Altman Z-Score: 0.48, indicating distress zone
- Piotroski Score: 5, representing average strength
DTE Scores
- Altman Z-Score: 1.03, also in distress zone
- Piotroski Score: 7, representing strong strength
Which company has the best scores?
Based on the provided data, DTE has a higher Piotroski Score (7 vs. 5), indicating stronger financial health, while both companies remain in the distress zone for Altman Z-Score, with DTE slightly higher but still below safe levels.
Grades Comparison
Here is the comparison of the latest grades from reputable grading companies for Pacific Gas & Electric Co. and DTE Energy Company:
Pacific Gas & Electric Co. Grades
The following table summarizes recent grades assigned by major financial institutions to Pacific Gas & Electric Co.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Overweight | 2025-12-12 |
| UBS | Maintain | Neutral | 2025-10-24 |
| Jefferies | Maintain | Buy | 2025-10-22 |
| BMO Capital | Maintain | Outperform | 2025-10-14 |
| Jefferies | Maintain | Buy | 2025-10-03 |
| Barclays | Maintain | Overweight | 2025-10-01 |
| Morgan Stanley | Maintain | Equal Weight | 2025-09-25 |
| Morgan Stanley | Upgrade | Equal Weight | 2025-09-18 |
| UBS | Maintain | Neutral | 2025-09-18 |
| Barclays | Maintain | Overweight | 2025-07-22 |
Grades generally indicate a positive outlook with mostly “Buy,” “Overweight,” and “Outperform” ratings maintained or upgraded recently.
DTE Energy Company Grades
The following table presents recent grades from well-known grading firms for DTE Energy Company:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| BMO Capital | Maintain | Market Perform | 2025-12-24 |
| UBS | Maintain | Buy | 2025-12-17 |
| JP Morgan | Maintain | Neutral | 2025-12-11 |
| Jefferies | Upgrade | Buy | 2025-12-11 |
| B of A Securities | Maintain | Buy | 2025-11-05 |
| Scotiabank | Maintain | Sector Perform | 2025-10-31 |
| Morgan Stanley | Maintain | Overweight | 2025-10-22 |
| Barclays | Maintain | Equal Weight | 2025-10-14 |
| UBS | Maintain | Buy | 2025-10-10 |
| Scotiabank | Downgrade | Sector Perform | 2025-10-03 |
Grades for DTE show a mixed but stable outlook, with multiple “Buy” and “Overweight” ratings balanced by “Market Perform” and “Sector Perform” assessments.
Which company has the best grades?
Pacific Gas & Electric Co. generally holds stronger grades with more consistent “Buy,” “Overweight,” and “Outperform” ratings, compared to DTE Energy’s more mixed “Buy” and “Hold” ratings. This suggests Pacific Gas & Electric Co. may be viewed more favorably by analysts, potentially impacting investor sentiment and portfolio weighting decisions.
Strengths and Weaknesses
Below is a comparison of Pacific Gas & Electric Co. (PCG) and DTE Energy Company (DTE) based on key financial and operational criteria.
| Criterion | Pacific Gas & Electric Co. (PCG) | DTE Energy Company (DTE) |
|---|---|---|
| Diversification | Moderate: Focused mainly on Electricity ($18.6B) and Natural Gas ($6.6B) segments. | High: Diverse segments including Electric ($5.8B), Gas ($1.7B), Energy Trading ($4.6B), and DTE Vantage ($0.8B). |
| Profitability | Mixed: Net margin favorable at 10.3%, but ROE (8.3%) and ROIC (4.0%) are unfavorable; dividend yield very low (0.2%). | Balanced: Net margin slightly better at 11.3%, ROE neutral at 12%, ROIC unfavorable (4.7%), but dividend yield attractive at 3.2%. |
| Innovation | Limited data on innovation segments; traditional utility focus. | Presence of DTE Vantage ($0.8B) indicates some innovation in clean energy solutions. |
| Global presence | Primarily US-focused with regulated utilities in California. | Primarily US-focused, mainly Michigan, with energy trading exposure. |
| Market Share | Large market share in California regulated electricity and gas markets. | Strong regional presence in Michigan with diversified energy trading operations. |
Key takeaways: Both companies show slightly unfavorable economic moats with increasing profitability trends. PCG has stronger focus on regulated electricity and gas, while DTE benefits from greater diversification and a higher dividend yield. Investors should weigh PCG’s growing ROIC against DTE’s broader segment exposure and better dividend income potential.
Risk Analysis
Below is an overview of the main risks for Pacific Gas & Electric Co. (PCG) and DTE Energy Company (DTE) based on the most recent data from 2024.
| Metric | Pacific Gas & Electric Co. (PCG) | DTE Energy Company (DTE) |
|---|---|---|
| Market Risk | Moderate (Beta 0.38, low volatility) | Moderate (Beta 0.48, low volatility) |
| Debt Level | High (Debt-to-Equity 1.94, unfavorable) | High (Debt-to-Equity 1.99, unfavorable) |
| Regulatory Risk | Elevated (California utility sector scrutiny) | Moderate (Michigan regulatory environment stable) |
| Operational Risk | Significant (Complex energy mix, aging infrastructure) | Moderate (Diverse generation assets, smaller scale) |
| Environmental Risk | High (Wildfire liabilities, carbon regulations) | Moderate (Renewables growth, fossil fuel exposure) |
| Geopolitical Risk | Low (US domestic focus) | Low (US domestic focus) |
The most impactful risks are environmental and debt-related. PCG faces high wildfire liabilities and regulatory scrutiny in California, increasing operational and financial risks. Both companies carry high debt levels, but PCG’s weaker interest coverage heightens bankruptcy risk. Market and geopolitical risks remain moderate to low for both. Caution is warranted, especially with PCG’s distressed financial scores and regulatory challenges.
Which Stock to Choose?
Pacific Gas & Electric Co. (PCG) shows a favorable income statement overall, with strong growth in net income and margins over 2020-2024, despite a slight revenue decline recently. Its financial ratios are slightly unfavorable, with concerns around debt and profitability metrics. The company’s rating is very favorable (B-), yet it faces challenges in debt management and interest coverage. The MOAT analysis indicates value destruction but improving profitability.
DTE Energy Company (DTE) presents a less favorable income statement, marked by modest revenue growth and mixed margin trends, with some recent declines in earnings performance. Its financial ratios are also slightly unfavorable, with better dividend yield but weaker liquidity ratios. The rating is very favorable (C), supported by a strong Piotroski score but offset by distress-zone Altman Z-Score. The MOAT evaluation mirrors PCG’s, showing value destruction but improving returns.
For investors, PCG might appear more attractive for those prioritizing income growth and improving profitability, while DTE could suit those valuing dividend yield and stronger financial strength metrics. Both companies share slightly unfavorable ratio profiles and value destruction signals, implying cautious consideration aligned with individual risk tolerance and investment objectives.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Pacific Gas & Electric Co. and DTE Energy Company to enhance your investment decisions:
