Sempra Energy (NYSE: SRE) and Brookfield Renewable Partners L.P. (NYSE:BEP) are both mid-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitabiliy, dividends, earnings and risk.

Profitability

This table compares Sempra Energy and Brookfield Renewable Partners L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sempra Energy 13.77% 9.06% 2.78%
Brookfield Renewable Partners L.P. -1.34% -0.10% -0.04%

Volatility & Risk

Sempra Energy has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Brookfield Renewable Partners L.P. has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500.

Insider and Institutional Ownership

82.1% of Sempra Energy shares are held by institutional investors. Comparatively, 54.4% of Brookfield Renewable Partners L.P. shares are held by institutional investors. 0.2% of Sempra Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sempra Energy and Brookfield Renewable Partners L.P., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sempra Energy 0 2 3 0 2.60
Brookfield Renewable Partners L.P. 0 4 5 0 2.56

Sempra Energy currently has a consensus target price of $121.75, indicating a potential upside of 7.39%. Brookfield Renewable Partners L.P. has a consensus target price of $36.60, indicating a potential upside of 10.57%. Given Brookfield Renewable Partners L.P.’s higher probable upside, analysts clearly believe Brookfield Renewable Partners L.P. is more favorable than Sempra Energy.

Valuation and Earnings

This table compares Sempra Energy and Brookfield Renewable Partners L.P.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sempra Energy $10.59 billion 2.69 $3.15 billion $5.78 19.61
Brookfield Renewable Partners L.P. $2.46 billion 3.99 $1.36 billion N/A N/A

Sempra Energy has higher revenue and earnings than Brookfield Renewable Partners L.P..

Dividends

Sempra Energy pays an annual dividend of $3.29 per share and has a dividend yield of 2.9%. Brookfield Renewable Partners L.P. pays an annual dividend of $1.87 per share and has a dividend yield of 5.6%. Sempra Energy pays out 56.9% of its earnings in the form of a dividend. Sempra Energy has increased its dividend for 6 consecutive years and Brookfield Renewable Partners L.P. has increased its dividend for 3 consecutive years.

Summary

Sempra Energy beats Brookfield Renewable Partners L.P. on 10 of the 15 factors compared between the two stocks.

Sempra Energy Company Profile

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.

Brookfield Renewable Partners L.P. Company Profile

Brookfield Renewable Partners L.P., formerly Brookfield Renewable Energy Partners L.P., is the owner and operator of a portfolio of assets that generate electricity from renewable resources. The Company operates as a pure-play renewable power platform. Its segments include Hydroelectric, Wind, Other and Corporate. It operates renewable power generating assets, which include conventional hydroelectric facilities and wind facilities located in North America, Colombia, Brazil and Europe. It also operates approximately four biomass facilities and three Co-gen facilities. It owns approximately 10,730 megawatts (MW) of installed capacity and an over 6,000 MW development pipeline diversified across 15 power markets in North America, Colombia, Brazil and Europe. This portfolio includes approximately 217 hydroelectric generating stations on over 82 river systems and approximately 38 wind facilities. Its portfolio also includes over 3,000 MW of medium to long-term development projects.

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