Avangrid (AGR) vs. Sempra Energy (SRE) Head to Head Comparison
Avangrid (NYSE: AGR) and Sempra Energy (NYSE:SRE) are both large-cap utilities companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.
Valuation and Earnings
This table compares Avangrid and Sempra Energy’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Avangrid||$6.00 billion||2.47||$1.94 billion||$2.18||21.96|
|Sempra Energy||$10.97 billion||2.60||$3.71 billion||$6.75||16.86|
Sempra Energy has higher revenue and earnings than Avangrid. Sempra Energy is trading at a lower price-to-earnings ratio than Avangrid, indicating that it is currently the more affordable of the two stocks.
This table compares Avangrid and Sempra Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Avangrid has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Sempra Energy has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Avangrid and Sempra Energy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Avangrid presently has a consensus price target of $46.17, suggesting a potential downside of 3.58%. Sempra Energy has a consensus price target of $122.67, suggesting a potential upside of 7.78%. Given Sempra Energy’s higher possible upside, analysts plainly believe Sempra Energy is more favorable than Avangrid.
Avangrid pays an annual dividend of $1.73 per share and has a dividend yield of 3.6%. Sempra Energy pays an annual dividend of $3.29 per share and has a dividend yield of 2.9%. Avangrid pays out 79.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sempra Energy pays out 48.7% of its earnings in the form of a dividend. Sempra Energy has raised its dividend for 6 consecutive years.
Institutional and Insider Ownership
13.2% of Avangrid shares are owned by institutional investors. Comparatively, 80.8% of Sempra Energy shares are owned by institutional investors. 0.3% of Avangrid shares are owned by insiders. Comparatively, 0.2% of Sempra Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Sempra Energy beats Avangrid on 12 of the 16 factors compared between the two stocks.
Avangrid Company Profile
Avangrid, Inc. is an energy and utility company. The Company operates through three segments: Networks, Renewables and Gas. The Networks segment includes all the energy transmission and distribution activities, and any other regulated activity originating in New York and Maine, and regulated electric distribution, electric transmission and gas distribution activities originating in Connecticut and Massachusetts. The Renewables segment owns, develops, constructs and/or operates electricity generation, including renewable and thermal generators, and associated transmission facilities. The Renewables segment includes activities relating to renewable energy, mainly wind energy generation and trading related with such activities. The Gas segment operates a natural gas storage and natural gas trading business through its subsidiaries, Enstor, Inc. and Enstor Energy Services, LLC.
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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