SRE vs. AEP, D, NGG, EXC, PCG, PEG, ED, XEL, BCE, and CHT
Should you be buying Sempra stock or one of its competitors? The main competitors of Sempra include American Electric Power (AEP), Dominion Energy (D), National Grid (NGG), Exelon (EXC), PG&E (PCG), Public Service Enterprise Group (PEG), Consolidated Edison (ED), Xcel Energy (XEL), BCE (BCE), and Chunghwa Telecom (CHT). These companies are all part of the "utilities" sector.
Sempra (NYSE:SRE) and American Electric Power (NASDAQ:AEP) are both large-cap utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, media sentiment, institutional ownership, risk, community ranking and dividends.
Sempra has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, American Electric Power has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.
89.7% of Sempra shares are held by institutional investors. Comparatively, 75.2% of American Electric Power shares are held by institutional investors. 0.2% of Sempra shares are held by insiders. Comparatively, 0.1% of American Electric Power shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Sempra received 394 more outperform votes than American Electric Power when rated by MarketBeat users. Likewise, 59.97% of users gave Sempra an outperform vote while only 55.15% of users gave American Electric Power an outperform vote.
Sempra has higher earnings, but lower revenue than American Electric Power. Sempra is trading at a lower price-to-earnings ratio than American Electric Power, indicating that it is currently the more affordable of the two stocks.
Sempra presently has a consensus price target of $82.14, suggesting a potential upside of 12.73%. American Electric Power has a consensus price target of $87.36, suggesting a potential downside of 1.00%. Given Sempra's stronger consensus rating and higher probable upside, equities research analysts clearly believe Sempra is more favorable than American Electric Power.
Sempra has a net margin of 18.26% compared to American Electric Power's net margin of 14.60%. American Electric Power's return on equity of 11.23% beat Sempra's return on equity.
In the previous week, American Electric Power had 37 more articles in the media than Sempra. MarketBeat recorded 50 mentions for American Electric Power and 13 mentions for Sempra. Sempra's average media sentiment score of 0.85 beat American Electric Power's score of 0.33 indicating that Sempra is being referred to more favorably in the media.
Sempra pays an annual dividend of $2.48 per share and has a dividend yield of 3.4%. American Electric Power pays an annual dividend of $3.52 per share and has a dividend yield of 4.0%. Sempra pays out 51.8% of its earnings in the form of a dividend. American Electric Power pays out 65.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Summary
Sempra beats American Electric Power on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SRE and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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