Sempra Energy (NYSE: SRE) and Brookfield Renewable Partners (NYSE:BEP) are both mid-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitabiliy.
This table compares Sempra Energy and Brookfield Renewable Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookfield Renewable Partners||-1.34%||-0.10%||-0.04%|
Insider and Institutional Ownership
80.4% of Sempra Energy shares are owned by institutional investors. Comparatively, 54.4% of Brookfield Renewable Partners shares are owned by institutional investors. 0.2% of Sempra Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary of current ratings and price targets for Sempra Energy and Brookfield Renewable Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Renewable Partners||0||6||4||0||2.40|
Sempra Energy presently has a consensus target price of $121.75, suggesting a potential upside of 8.68%. Brookfield Renewable Partners has a consensus target price of $36.00, suggesting a potential upside of 9.96%. Given Brookfield Renewable Partners’ higher possible upside, analysts clearly believe Brookfield Renewable Partners is more favorable than Sempra Energy.
Earnings & Valuation
This table compares Sempra Energy and Brookfield Renewable Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sempra Energy||$10.59 billion||2.65||$3.15 billion||$5.78||19.38|
|Brookfield Renewable Partners||$2.46 billion||3.95||$1.36 billion||N/A||N/A|
Sempra Energy has higher revenue and earnings than Brookfield Renewable Partners.
Sempra Energy pays an annual dividend of $3.29 per share and has a dividend yield of 2.9%. Brookfield Renewable Partners pays an annual dividend of $1.87 per share and has a dividend yield of 5.7%. Sempra Energy pays out 56.9% of its earnings in the form of a dividend. Sempra Energy has increased its dividend for 6 consecutive years and Brookfield Renewable Partners has increased its dividend for 3 consecutive years.
Volatility & Risk
Sempra Energy has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Brookfield Renewable Partners has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.
Sempra Energy beats Brookfield Renewable Partners on 10 of the 15 factors compared between the two stocks.
About Sempra Energy
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.
About Brookfield Renewable Partners
Brookfield Renewable Partners L.P., formerly Brookfield Renewable Energy Partners L.P., is the owner and operator of a portfolio of assets that generate electricity from renewable resources. The Company operates as a pure-play renewable power platform. Its segments include Hydroelectric, Wind, Other and Corporate. It operates renewable power generating assets, which include conventional hydroelectric facilities and wind facilities located in North America, Colombia, Brazil and Europe. It also operates approximately four biomass facilities and three Co-gen facilities. It owns approximately 10,730 megawatts (MW) of installed capacity and an over 6,000 MW development pipeline diversified across 15 power markets in North America, Colombia, Brazil and Europe. This portfolio includes approximately 217 hydroelectric generating stations on over 82 river systems and approximately 38 wind facilities. Its portfolio also includes over 3,000 MW of medium to long-term development projects.
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