Sempra Energy (NYSE:SRE) & EDP – Energias de Portugal (OTCMKTS:ELCPF) Head to Head Review

Sempra Energy (NYSE:SRE) and EDP – Energias de Portugal (OTCMKTS:ELCPF) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sempra Energy and EDP – Energias de Portugal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sempra Energy	0	4	10	1	2.80
EDP – Energias de Portugal	0	1	2	0	2.67

Sempra Energy currently has a consensus target price of $103.62, suggesting a potential upside of 23.78%. Given Sempra Energy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Sempra Energy is more favorable than EDP – Energias de Portugal.

Profitability

This table compares Sempra Energy and EDP – Energias de Portugal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sempra Energy	16.70%	8.49%	2.98%
EDP – Energias de Portugal	N/A	N/A	N/A

Valuation & Earnings

This table compares Sempra Energy and EDP – Energias de Portugal”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sempra Energy	$13.70 billion	3.99	$1.84 billion	$3.45	24.26
EDP – Energias de Portugal	N/A	N/A	N/A	$0.28	18.80

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

Insider and Institutional Ownership

89.7% of Sempra Energy shares are held by institutional investors. Comparatively, 31.6% of EDP – Energias de Portugal shares are held by institutional investors. 0.3% of Sempra Energy shares are held 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 $2.63 per share and has a dividend yield of 3.1%. EDP – Energias de Portugal pays an annual dividend of $0.13 per share and has a dividend yield of 2.6%. Sempra Energy pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EDP – Energias de Portugal pays out 48.4% of its earnings in the form of a dividend. Sempra Energy has increased its dividend for 22 consecutive years. Sempra Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Sempra Energy beats EDP – Energias de Portugal on 14 of the 15 factors compared between the two stocks.

About Sempra Energy

Sempra operates as an energy infrastructure company in the United States and internationally. It operates through three segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. The Sempra California segment provides electric services; and natural gas services to San Diego County. As of December 31, 2023, it offered electric services to approximately 3.6 million population and natural gas services to approximately 3.3 million population that covers 4,100 square miles. This segment owns and operates a natural gas distribution, transmission, and storage system that supplies natural gas. As of December 31, 2023, it serves a population of 21 million covering an area of 24,000 square miles. The Sempra Texas Utilities segment engages in the regulated electricity transmission and distribution. As of December 31, 2023, its transmission system included 18,298 circuit miles of transmission lines; 1,257 transmission and distribution substations; interconnection to 173 third-party generation facilities totaling 54,277 MW; and distribution system included approximately 4.0 million points of delivery and consisted of 125,116 miles of overhead and underground lines. The Sempra Infrastructure segment develops, builds, operates, and invests in energy infrastructure to help enable the energy transition in North American markets and worldwide. The company was formerly known as Sempra Energy and changed its name to Sempra in May 2023. Sempra was incorporated in 1996 and is based in San Diego, California.

About EDP – Energias de Portugal

EDP – Energias de Portugal, S.A. engages in the generation, transmission, distribution, and supply of electricity in Portugal, Spain, France, Poland, Romania, Italy, Belgium, the United Kingdom, Greece, Colombia, Brazil, North America, and internationally. It operates through Renewables, Networks, and Client Solutions & Energy Management segments. The company primarily generates and sells electricity through hydro, CCGT, coal, wind, solar, nuclear, and cogeneration and waste sources. It has an installed capacity of 28 GW; and operates 380,788 kilometers of distribution network lines. The company is also involved in the supply of natural gas. In addition, it offers engineering, laboratory tests, professional training, and energy services, as well as property management services. The company's electricity and gas customers include domestic, industrial, commercial, agricultural, and others. The company was incorporated in 1976 and is headquartered in Lisbon, Portugal.