Comparing Sempra Energy (SRE) & Clean Energy Fuels (CLNE)

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

Profitability

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

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

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.

Analyst Recommendations

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

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

Sempra Energy has a consensus target price of $119.80, suggesting a potential upside of 8.30%. Given Sempra Energy’s higher probable upside, analysts clearly believe Sempra Energy is more favorable than Clean Energy Fuels.

Risk & Volatility

Clean Energy Fuels has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Sempra Energy has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Institutional & Insider Ownership

33.5% of Clean Energy Fuels shares are held by institutional investors. Comparatively, 82.4% of Sempra Energy shares are held by institutional investors. 26.7% of Clean Energy Fuels shares are held by insiders. Comparatively, 0.2% of Sempra Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Clean Energy Fuels and Sempra Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clean Energy Fuels $341.60 million 0.72 -$79.23 million ($0.53) -3.06
Sempra Energy $11.21 billion 2.52 $257.00 million $5.42 20.41

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 13 of the 16 factors compared between the two stocks.

Clean Energy Fuels Company Profile

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.

Sempra Energy Company Profile

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.

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