Head to Head Comparison: Sempra Energy (NYSE:SRE) vs. Its Competitors
Sempra Energy (NYSE: SRE) is one of 22 public companies in the “Multiline Utilities” industry, but how does it compare to its competitors? We will compare Sempra Energy to related companies based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.
Risk & Volatility
Sempra Energy has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Sempra Energy’s competitors have a beta of 0.60, meaning that their average share price is 40% less volatile than the S&P 500.
Insider & Institutional 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 company insiders. Comparatively, 3.1% of shares of all “Multiline Utilities” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Sempra Energy and its competitors’ 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%|
Earnings and Valuation
This table compares Sempra Energy and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Sempra Energy||$10.97 billion||$3.71 billion||17.02|
|Sempra Energy Competitors||$7.70 billion||$2.04 billion||20.81|
Sempra Energy has higher revenue and earnings than its competitors. Sempra Energy is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
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 3.0% and pay out 71.1% of their earnings in the form of a dividend. Sempra Energy has increased its dividend for 6 consecutive years.
This is a summary of current ratings and target prices for Sempra Energy and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sempra Energy Competitors||324||961||826||6||2.24|
Sempra Energy currently has a consensus price target of $123.75, indicating a potential upside of 7.73%. As a group, “Multiline Utilities” companies have a potential upside of 9.30%. Given Sempra Energy’s competitors higher possible upside, analysts plainly believe Sempra Energy has less favorable growth aspects than its competitors.
Sempra Energy beats its competitors 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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