Sempra Energy (SRE) vs. Its Competitors Head to Head Comparison
Sempra Energy (NYSE: SRE) is one of 22 publicly-traded companies in the “Multiline Utilities” industry, but how does it weigh in compared to its peers? We will compare Sempra Energy to related companies based on the strength of its analyst recommendations, dividends, valuation, institutional ownership, risk, profitability and earnings.
Risk & Volatility
Sempra Energy has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Sempra Energy’s peers have a beta of 0.61, suggesting that their average share price is 39% less volatile than the S&P 500.
Sempra Energy pays an annual dividend of $3.29 per share and has a dividend yield of 2.9%. Sempra Energy pays out 48.7% of its earnings in the form of a dividend. As a group, “Multiline Utilities” companies pay a dividend yield of 3.1% and pay out 71.1% of their earnings in the form of a dividend. Sempra Energy has raised its dividend for 6 consecutive years.
Institutional and Insider Ownership
80.8% of Sempra Energy shares are held by institutional investors. Comparatively, 66.2% of shares of all “Multiline Utilities” companies are held by institutional investors. 0.2% of Sempra Energy shares are held by insiders. Comparatively, 3.1% of shares of all “Multiline Utilities” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Sempra Energy and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sempra Energy Competitors||8.42%||8.94%||2.33%|
This is a summary of current recommendations for Sempra Energy and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sempra Energy Competitors||363||1074||869||9||2.23|
Sempra Energy currently has a consensus target price of $121.60, suggesting a potential upside of 6.69%. As a group, “Multiline Utilities” companies have a potential upside of 10.47%. Given Sempra Energy’s peers higher possible upside, analysts clearly believe Sempra Energy has less favorable growth aspects than its peers.
Earnings and Valuation
This table compares Sempra Energy and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Sempra Energy||$10.97 billion||$3.71 billion||16.89|
|Sempra Energy Competitors||$7.70 billion||$2.04 billion||20.52|
Sempra Energy has higher revenue and earnings than its peers. Sempra Energy is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Sempra Energy beats its peers on 10 of the 15 factors compared.
About Sempra Energy
Sempra Energy is a holding company. The Company’s principal operating units are Sempra Utilities, which includes its San Diego Gas & Electric Company (SDG&E), Southern California Gas Company (SoCalGas) and Sempra South American Utilities segments, and Sempra Infrastructure, which includes its Sempra Mexico, Sempra Renewables and Sempra LNG & Midstream segments. As of December 31, 2016, SDG&E’s service area covered 4,100 square miles. Sempra South American Utilities operates Chilquinta Energia, which serves customers in the region of Valparaiso in central Chile. As of December 31, 2016, SoCalGas had natural gas franchises with the 12 counties and the 223 cities in its service territory. Sempra LNG & Midstream owns land in Simpson County, Mississippi Hub. Sempra LNG & Midstream owns land in Port Arthur, Texas. Sempra Renewables has operations, investments or development projects in the various United States markets.
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