The utilities sector has been experiencing gains in the past month, as investors rotate from growth stocks to safer, more reliable, equities. With that in mind, today I'll analyze and compare two utilities stocks, DTE Energy (DTE) and Xcel Energy (XEL), to determine which is currently the better buy.The utilities sector consists of companies that provide electricity, natural gas, water, and wastewater services to various customers, including residential, commercial, industrial, and government. According to Research and Markets, the global utilities market is estimated to grow at a CAGR of 7% over the next three years, reaching $5996.57 billion by 2025.
The utilities sector tends to be relatively stable during different business cycles amid highly inelastic demand for its services. As a result, the utilities sector, which is represented by the Utilities Select Sector SPDR ETF (NYSE:XLU), has returned 11.6% since the beginning of the year, underperforming the broader market. Yes, the XLU is up 2.41% in the past month, as the S&P 500 has slid 3.44%.
As the volatility in the market continues to increase, investors might want to consider adding utilities stocks to their portfolios. Therefore, today I’ll analyze and compare two utilities stocks: DTE Energy Company (NYSE:DTE) and Xcel Energy Inc. (NASDAQ:XEL).