Sempra Energy (NYSE:SRE) and ROTORK PLC/ADR (OTCMKTS:RTOXY) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.
Valuation & Earnings
This table compares Sempra Energy and ROTORK PLC/ADR’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sempra Energy||$11.21 billion||2.84||$257.00 million||$5.42||21.49|
|ROTORK PLC/ADR||$827.31 million||3.39||$71.67 million||$0.55||23.44|
Sempra Energy pays an annual dividend of $3.58 per share and has a dividend yield of 3.1%. ROTORK PLC/ADR pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. Sempra Energy pays out 66.1% of its earnings in the form of a dividend. ROTORK PLC/ADR pays out 36.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Sempra Energy has raised its dividend for 7 consecutive years. Sempra Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Sempra Energy and ROTORK PLC/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
94.1% of Sempra Energy shares are owned by institutional investors. 0.2% of Sempra Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility & Risk
Sempra Energy has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, ROTORK PLC/ADR has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Sempra Energy and ROTORK PLC/ADR, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sempra Energy currently has a consensus price target of $123.29, indicating a potential upside of 5.87%. Given Sempra Energy’s higher possible upside, analysts clearly believe Sempra Energy is more favorable than ROTORK PLC/ADR.
Sempra Energy beats ROTORK PLC/ADR on 11 of the 16 factors compared between the two stocks.
About Sempra Energy
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.
About ROTORK PLC/ADR
Rotork plc designs, manufactures, and markets actuators and flow control products worldwide. It operates through four segments: Controls, Fluid Systems, Gears, and Instruments. The company offers electric actuators and control systems, including intelligent multi-turn and part-turn valve actuators, part-turn/rotary and linear control valve actuators, heavy-duty part-turn/rotary and linear valve actuators, small part-turn/rotary valve actuators, and network control systems, as well as explosion proof actuators, sensors, switches, and controls. It also provides pneumatic and hydraulic rotary and linear, electro-hydraulic, subsea, and vane-type pneumatic valve actuators, as well as smart valve monitoring and control systems. In addition, the company offers manual and motorized multi-turn gearboxes and quarter-turn gearboxes; and worm gear quarter-turn, subsea quarter-turn, and override quarter-turn gear operators, as well as mounting brackets, extension shafts, pedestals, and accessories for the valve and actuator industry. Further, it provides instrumentation and control products, such as pneumatic pressure regulators, electro-pneumatic transducers, pneumatic air volume boosters, and pneumatic relays. Additionally, the company offers pneumatic valves and manifolds, which include air preparation, poppet valves, spool valves, ancillaries, direct acting solenoid valves, slide valves, and impact pneumatic manifolds. It also provides emergency and planned service, including installation, commissioning, and upgrading control systems, as well as troubleshooting and repair of damaged or deteriorating assets; and actuator overhauls, shutdown outages, preventative maintenance, technical support, and training services. It primarily serves power generation, oil and gas, water and sewage, marine, mining, and other industries. The company was incorporated in 1957 and is headquartered in Bath, the United Kingdom.
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