Financial Comparison: Sempra Energy (NYSE:SRE) and Enagas (OTCMKTS:ENGGY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enagas	N/A	N/A	N/A
Sempra Energy	22.15%	8.55%	3.24%

Risk and Volatility

Enagas has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Sempra Energy has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Valuation & Earnings

This table compares Enagas and Sempra Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enagas	$979.99 million	4.14	-$323.88 million	N/A	N/A
Sempra Energy	$13.19 billion	3.69	$2.86 billion	$4.55	16.39

Sempra Energy has higher revenue and earnings than Enagas.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Enagas and Sempra Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enagas	0	0	0	0	0.00
Sempra Energy	0	6	7	0	2.54

Sempra Energy has a consensus price target of $80.75, indicating a potential upside of 8.26%. Given Sempra Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Sempra Energy is more favorable than Enagas.

Insider & Institutional Ownership

89.7% of Sempra Energy shares are owned by institutional investors. 0.2% of Enagas shares are owned by company insiders. Comparatively, 0.3% of Sempra Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Enagas pays an annual dividend of $0.48 per share and has a dividend yield of 6.2%. Sempra Energy pays an annual dividend of $2.58 per share and has a dividend yield of 3.5%. Sempra Energy pays out 56.7% of its earnings in the form of a dividend. Sempra Energy has increased its dividend for 22 consecutive years.

Summary

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

About Enagas

Enagás, S.A. engages in the development, operation, and maintenance of gas infrastructures in Spain and internationally. The company provides gas transportation services through gas pipelines; natural gas regasification services; and operates underground storage facilities. It is involved in the operation and technical management of the basic network and secondary transportation network for natural gas. The company operates approximately 12,000 kilometers of gas pipelines, 19 compressor stations and 416 regulation and metering stations. Enagás, S.A. was founded in 1972 and is based in Madrid, Spain.

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.