Sempra Energy (NYSE: SRE) and Clean Energy Fuels (NASDAQ:CLNE) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Analyst Ratings

How to Become a New Pot Stock Millionaire

This is a summary of recent ratings and recommmendations for Sempra Energy and Clean Energy Fuels, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sempra Energy 0 4 6 0 2.60
Clean Energy Fuels 0 0 0 0 N/A

Sempra Energy currently has a consensus target price of $119.80, indicating a potential upside of 7.15%. Given Sempra Energy’s higher probable upside, equities research analysts clearly believe Sempra Energy is more favorable than Clean Energy Fuels.

Profitability

This table compares Sempra Energy and Clean Energy Fuels’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sempra Energy 2.28% 8.86% 2.76%
Clean Energy Fuels -23.20% -15.55% -9.41%

Institutional & Insider Ownership

82.4% of Sempra Energy shares are owned by institutional investors. Comparatively, 33.5% of Clean Energy Fuels shares are owned by institutional investors. 0.2% of Sempra Energy shares are owned by insiders. Comparatively, 14.9% of Clean Energy Fuels shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Sempra Energy pays an annual dividend of $3.58 per share and has a dividend yield of 3.2%. Clean Energy Fuels does not pay a dividend. Sempra Energy pays out 66.1% of its earnings in the form of a dividend. Sempra Energy has increased its dividend for 7 consecutive years.

Risk and Volatility

Sempra Energy has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Clean Energy Fuels has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Earnings and Valuation

This table compares Sempra Energy and Clean Energy Fuels’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sempra Energy $11.21 billion 2.55 $257.00 million $5.42 20.63
Clean Energy Fuels $341.60 million 0.75 -$79.23 million ($0.53) -3.17

Sempra Energy has higher revenue and earnings than Clean Energy Fuels. Clean Energy Fuels is trading at a lower price-to-earnings ratio than Sempra Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Sempra Energy beats Clean Energy Fuels on 12 of the 15 factors compared between the two stocks.

About Sempra Energy

Sempra Energy, together with its subsidiaries, invests in, develops, and operates energy infrastructure, as well as provides electric and gas services in the United States and internationally. The company's San Diego Gas & Electric Company segment engages in the generation, transmission, and distribution of electricity. This segment also sells, distributes, and transports natural gas. Its Southern California Gas Company segment owns and operates a natural gas distribution, transmission, and storage system that supplies natural gas. The company's Sempra South American Utilities segment develops, owns, operates, or holds interests in electric transmission, distribution, and generation infrastructure facilities. Its Sempra Mexico segment owns, develops, and operates natural gas transmission pipelines; liquid petroleum gas and ethane systems; electric generation facilities; a natural gas distribution utility; and liquefied natural gas (LNG) regasification terminals, as well as associated storage terminals. The company's Sempra Renewables segment develops, owns, operates, or holds interests in wind and solar power generation facilities. Its Sempra LNG & Midstream segment develops, owns, operates, or holds interests in LNG, and natural gas midstream assets and operations in Alabama, Louisiana, Mississippi, and Texas. The company primarily serves residential, commercial, and industrial customers. Sempra Energy was founded in 1998 and is headquartered in San Diego, California.

About Clean Energy Fuels

Clean Energy Fuels Corp. (Clean Energy) is a provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The Company is engaged in supplying compressed natural gas (CNG), liquefied natural gas (LNG) and renewable natural gas (RNG) for light, medium and heavy-duty vehicles, and providing operation and maintenance (O&M) services for natural gas fueling stations. The Company designs, builds, operates and maintains fueling stations; manufactures, sells and services non-lubricated natural gas fueling compressors and other equipment used in CNG stations and LNG stations; offers assessment, design and modification solutions to provide operators with code-compliant service and maintenance facilities for natural gas vehicle fleets, and transports and sells CNG and LNG to industrial and institutional energy users having no direct access to natural gas pipelines, among others.

Receive News & Ratings for Sempra Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sempra Energy and related companies with MarketBeat.com's FREE daily email newsletter.