Sempra Energy (NYSE: SRE) is one of 22 publicly-traded companies in the “Multiline Utilities” industry, but how does it contrast to its competitors? We will compare Sempra Energy to similar businesses based on the strength of its analyst recommendations, institutional ownership, earnings, profitability, valuation, risk and dividends.

Profitability

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 15.51% 9.11% 2.84%
Sempra Energy Competitors 8.18% 6.78% 0.93%

Volatility and Risk

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.

Institutional and Insider Ownership

80.8% of Sempra Energy shares are owned by institutional investors. Comparatively, 66.2% of shares of all “Multiline Utilities” companies are owned by institutional investors. 0.2% of Sempra Energy shares are owned by company insiders. Comparatively, 3.1% of shares of all “Multiline Utilities” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Sempra Energy and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sempra Energy 0 2 3 0 2.60
Sempra Energy Competitors 316 957 818 6 2.25

Sempra Energy presently has a consensus target price of $121.60, indicating a potential upside of 6.15%. As a group, “Multiline Utilities” companies have a potential upside of 11.65%. Given Sempra Energy’s competitors higher probable upside, analysts plainly believe Sempra Energy has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Sempra Energy and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sempra Energy $10.97 billion $3.71 billion 16.97
Sempra Energy Competitors $7.70 billion $2.04 billion 20.64

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.

Dividends

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 increased its dividend for 6 consecutive years.

Summary

Sempra Energy beats its competitors on 9 of the 15 factors compared.

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.

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