Reviewing Sempra Energy (NYSE:SRE) & ENN Energy (OTCMKTS:XNGSY)

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

Dividends

ENN Energy pays an annual dividend of $2.02 per share and has a dividend yield of 6.3%. Sempra Energy pays an annual dividend of $2.58 per share and has a dividend yield of 3.1%. Sempra Energy pays out 62.3% of its earnings in the form of a dividend. Sempra Energy has raised its dividend for 22 consecutive years.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENN Energy	$15.28 billion	0.60	$832.79 million	N/A	N/A
Sempra Energy	$13.19 billion	4.08	$2.86 billion	$4.14	19.92

Sempra Energy has lower revenue, but higher earnings than ENN Energy.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for ENN Energy and Sempra Energy, as reported by MarketBeat.com.

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

Sempra Energy has a consensus target price of $82.33, indicating a potential downside of 0.19%. Given Sempra Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Sempra Energy is more favorable than ENN Energy.

Institutional and Insider Ownership

89.7% of Sempra Energy shares are owned by institutional investors. 0.3% of Sempra Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

ENN Energy has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Sempra Energy has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ENN Energy	N/A	N/A	N/A
Sempra Energy	20.28%	8.42%	3.17%

Summary

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

About ENN Energy

ENN Energy Holdings Limited, an investment holding company, engages in the investment, construction, operation, and management of gas pipeline infrastructure in the People's Republic of China. It operates through Retail Gas Sales Business, Integrated Energy Business, Wholesale of Gas, Construction and Installation, and Value Added Business segments. The company also distributes and sells piped gas, liquefied natural gas (LNG), and other multi-energy products; operates vehicle gas refuelling stations; and provides services related to low-carbon integrated solutions. In addition, it is involved in the integrated energy business; retail of gas pipelines, and related materials and equipment; transportation of oil products and gas; and sourcing and sell of LNG, as well as wholesale and retail of LNG, CNG, gas equipment, appliances, and others; and provision of financial services. The company serves residential, commercial, and industrial customers. ENN Energy Holdings Limited was formerly known as XinAo Gas Holdings Limited and changed its name to ENN Energy Holdings Limited in September 2010. The company was founded in 1989 and is headquartered in Langfang, China.

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.