CMS versus DTE
CMS Energy (CMS), a $12-billion company, has consistently outperformed utility peers and S&P 500 for the last decade. CMS has been focusing on expanding its regulated electric and gas operations. On the contrary, DTE Energy (DTE), CMS’s neighboring utility in Michigan, has been expanding in non-utility operations for the past couple of years.
The trend of expanding beyond traditional utility operations is seen industry-wide because electricity consumption has been sluggish lately. US utilities (XLU) are actively expanding in midstream, gas distribution, and renewable businesses.
Continue to the next part of this series for a comparative analysis of current valuations.