SRE vs. AEP, D, NGG, EXC, PCG, PEG, ED, BCE, XEL, 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), BCE (BCE), Xcel Energy (XEL), 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 profitability, dividends, community ranking, analyst recommendations, earnings, risk, valuation, institutional ownership and media sentiment.
In the previous week, Sempra had 10 more articles in the media than American Electric Power. MarketBeat recorded 32 mentions for Sempra and 22 mentions for American Electric Power. American Electric Power's average media sentiment score of 0.73 beat Sempra's score of 0.16 indicating that American Electric Power is being referred to more favorably in the news media.
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.
89.7% of Sempra shares are owned by institutional investors. Comparatively, 75.2% of American Electric Power shares are owned by institutional investors. 0.3% of Sempra shares are owned by insiders. Comparatively, 0.1% of American Electric Power 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 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.
Sempra has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, American Electric Power has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.
Sempra presently has a consensus target price of $82.23, suggesting a potential upside of 9.30%. American Electric Power has a consensus target price of $88.14, suggesting a potential downside of 2.69%. Given Sempra's stronger consensus rating and higher probable upside, equities analysts clearly believe Sempra is more favorable than American Electric Power.
Sempra pays an annual dividend of $2.48 per share and has a dividend yield of 3.3%. American Electric Power pays an annual dividend of $3.52 per share and has a dividend yield of 3.9%. 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.
Sempra received 394 more outperform votes than American Electric Power when rated by MarketBeat users. Likewise, 60.03% of users gave Sempra an outperform vote while only 55.07% of users gave American Electric Power an outperform vote.
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.
Skip ChartThis 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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