Reviewing Clean Energy Fuels (CLNE) and Sempra Energy (SRE)

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

Dividends

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Sempra Energy pays an annual dividend of $3.58 per share and has a dividend yield of 3.3%. 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 raised its dividend for 7 consecutive years.

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 0.71 -$79.23 million ($0.53) -2.98
Sempra Energy $11.21 billion 2.50 $257.00 million $5.42 20.27

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.

Volatility and Risk

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

Analyst Ratings

This is a summary of recent ratings and recommmendations 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 price target of $119.80, indicating a potential upside of 9.02%. Given Sempra Energy’s higher possible upside, analysts plainly believe Sempra Energy is more favorable than Clean Energy Fuels.

Insider & Institutional Ownership

33.3% of Clean Energy Fuels shares are owned by institutional investors. Comparatively, 82.4% of Sempra Energy shares are owned by institutional investors. 14.9% of Clean Energy Fuels shares are owned by insiders. Comparatively, 0.2% of Sempra Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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%

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. provides natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The company supplies renewable natural gas (RNG), compressed natural gas (CNG), and liquefied natural gas (LNG) for light, medium, and heavy-duty vehicles; and provides operation and maintenance services for vehicle fleet customer stations. It also designs, builds, operates, and maintains fueling stations; and sells and services natural gas fueling compressors and other equipment used in CNG and LNG stations. In addition, the company provides assessment, design, and modification solutions to operators with code-compliant service and maintenance facilities for natural gas vehicle fleets; transports and sells CNG and LNG through virtual natural gas pipelines and interconnects; and procures and sells RNG. Further, it sells tradable credits comprising RNG and conventional natural gas as a vehicle fuel, such as Renewable Identification Numbers and Low Carbon Fuel Standards credits; and helps customers in acquiring and financing natural gas vehicles, as well as obtaining federal, state, and local credits, grants, and incentives. The company serves heavy-duty trucking, airport, refuse, and public transit markets; and industrial and institutional energy users, as well as government fleets. As of December 31, 2017 it served approximately 1,000 fleet customers operating approximately 46,000 natural gas vehicles; and owned, operated, or supplied approximately 530 natural gas fueling stations in 42 states in the United States and in 4 provinces in Canada. Clean Energy Fuels Corp. was incorporated in 2001 and is headquartered in Newport Beach, California.

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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