AES vs. SRE: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AES and SRE, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
SRE’s market capitalization of 48.99 billion USD is significantly greater than AES’s 8.20 billion USD, highlighting its more substantial market valuation.
With betas of 0.94 for AES and 0.66 for SRE, both stocks show similar sensitivity to overall market movements.
| Symbol | AES | SRE |
|---|---|---|
| Company Name | The AES Corporation | Sempra |
| Country | US | US |
| Sector | Utilities | Utilities |
| Industry | Diversified Utilities | Diversified Utilities |
| CEO | Andres Ricardo Gluski Weilert | Jeffrey Walker Martin |
| Price | 11.52 USD | 75.12 USD |
| Market Cap | 8.20 billion USD | 48.99 billion USD |
| Beta | 0.94 | 0.66 |
| Exchange | NYSE | NYSE |
| IPO Date | June 26, 1991 | June 29, 1998 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AES and SRE by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AES
36.26%
Diversified Utilities Industry
- Max
- 17.95%
- Q3
- 11.52%
- Median
- 9.21%
- Q1
- 6.89%
- Min
- 1.90%
AES’s Return on Equity of 36.26% is exceptionally high, placing it well beyond the typical range for the Diversified Utilities industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
SRE
9.72%
Diversified Utilities Industry
- Max
- 17.95%
- Q3
- 11.52%
- Median
- 9.21%
- Q1
- 6.89%
- Min
- 1.90%
SRE’s Return on Equity of 9.72% is on par with the norm for the Diversified Utilities industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
AES
3.83%
Diversified Utilities Industry
- Max
- 5.93%
- Q3
- 5.01%
- Median
- 4.05%
- Q1
- 3.29%
- Min
- 2.36%
AES’s Return on Invested Capital of 3.83% is in line with the norm for the Diversified Utilities industry, reflecting a standard level of efficiency in generating profits from its capital base.
SRE
3.07%
Diversified Utilities Industry
- Max
- 5.93%
- Q3
- 5.01%
- Median
- 4.05%
- Q1
- 3.29%
- Min
- 2.36%
SRE’s Return on Invested Capital of 3.07% is in the lower quartile for the Diversified Utilities industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
Net Profit Margin
AES
10.09%
Diversified Utilities Industry
- Max
- 22.37%
- Q3
- 17.08%
- Median
- 12.67%
- Q1
- 9.69%
- Min
- 0.50%
AES’s Net Profit Margin of 10.09% is aligned with the median group of its peers in the Diversified Utilities industry. This indicates its ability to convert revenue into profit is typical for the sector.
SRE
22.24%
Diversified Utilities Industry
- Max
- 22.37%
- Q3
- 17.08%
- Median
- 12.67%
- Q1
- 9.69%
- Min
- 0.50%
A Net Profit Margin of 22.24% places SRE in the upper quartile for the Diversified Utilities industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AES
15.19%
Diversified Utilities Industry
- Max
- 27.96%
- Q3
- 22.82%
- Median
- 19.04%
- Q1
- 13.03%
- Min
- 7.89%
AES’s Operating Profit Margin of 15.19% is around the midpoint for the Diversified Utilities industry, indicating that its efficiency in managing core business operations is typical for the sector.
SRE
22.65%
Diversified Utilities Industry
- Max
- 27.96%
- Q3
- 22.82%
- Median
- 19.04%
- Q1
- 13.03%
- Min
- 7.89%
SRE’s Operating Profit Margin of 22.65% is around the midpoint for the Diversified Utilities industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AES | SRE |
|---|---|---|
| Return on Equity (TTM) | 36.26% | 9.72% |
| Return on Assets (TTM) | 2.52% | 3.00% |
| Return on Invested Capital (TTM) | 3.83% | 3.07% |
| Net Profit Margin (TTM) | 10.09% | 22.24% |
| Operating Profit Margin (TTM) | 15.19% | 22.65% |
| Gross Profit Margin (TTM) | 17.62% | 42.14% |
Financial Strength
Current Ratio
AES
0.84
Diversified Utilities Industry
- Max
- 2.07
- Q3
- 1.38
- Median
- 1.19
- Q1
- 0.81
- Min
- 0.57
AES’s Current Ratio of 0.84 aligns with the median group of the Diversified Utilities industry, indicating that its short-term liquidity is in line with its sector peers.
SRE
0.57
Diversified Utilities Industry
- Max
- 2.07
- Q3
- 1.38
- Median
- 1.19
- Q1
- 0.81
- Min
- 0.57
SRE’s Current Ratio of 0.57 falls into the lower quartile for the Diversified Utilities industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AES
8.82
Diversified Utilities Industry
- Max
- 1.54
- Q3
- 1.19
- Median
- 0.73
- Q1
- 0.63
- Min
- 0.23
With a Debt-to-Equity Ratio of 8.82, AES operates with exceptionally high leverage compared to the Diversified Utilities industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
SRE
1.19
Diversified Utilities Industry
- Max
- 1.54
- Q3
- 1.19
- Median
- 0.73
- Q1
- 0.63
- Min
- 0.23
SRE’s leverage is in the upper quartile of the Diversified Utilities industry, with a Debt-to-Equity Ratio of 1.19. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
AES
1.25
Diversified Utilities Industry
- Max
- 6.39
- Q3
- 3.88
- Median
- 2.56
- Q1
- 1.73
- Min
- 1.25
In the lower quartile for the Diversified Utilities industry, AES’s Interest Coverage Ratio of 1.25 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
SRE
2.57
Diversified Utilities Industry
- Max
- 6.39
- Q3
- 3.88
- Median
- 2.56
- Q1
- 1.73
- Min
- 1.25
SRE’s Interest Coverage Ratio of 2.57 is positioned comfortably within the norm for the Diversified Utilities industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AES | SRE |
|---|---|---|
| Current Ratio (TTM) | 0.84 | 0.57 |
| Quick Ratio (TTM) | 0.78 | 0.51 |
| Debt-to-Equity Ratio (TTM) | 8.82 | 1.19 |
| Debt-to-Asset Ratio (TTM) | 0.63 | 0.38 |
| Net Debt-to-EBITDA Ratio (TTM) | 10.44 | 6.02 |
| Interest Coverage Ratio (TTM) | 1.25 | 2.57 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AES and SRE. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AES
6.05%
Diversified Utilities Industry
- Max
- 18.26%
- Q3
- 5.83%
- Median
- 4.74%
- Q1
- 2.93%
- Min
- 0.00%
With a Dividend Yield of 6.05%, AES offers a more attractive income stream than most of its peers in the Diversified Utilities industry, signaling a strong commitment to shareholder returns.
SRE
3.37%
Diversified Utilities Industry
- Max
- 18.26%
- Q3
- 5.83%
- Median
- 4.74%
- Q1
- 2.93%
- Min
- 0.00%
SRE’s Dividend Yield of 3.37% is consistent with its peers in the Diversified Utilities industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AES
40.23%
Diversified Utilities Industry
- Max
- 89.06%
- Q3
- 77.28%
- Median
- 56.48%
- Q1
- 42.75%
- Min
- 0.00%
AES’s Dividend Payout Ratio of 40.23% is in the lower quartile for the Diversified Utilities industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
SRE
52.58%
Diversified Utilities Industry
- Max
- 89.06%
- Q3
- 77.28%
- Median
- 56.48%
- Q1
- 42.75%
- Min
- 0.00%
SRE’s Dividend Payout Ratio of 52.58% is within the typical range for the Diversified Utilities industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AES | SRE |
|---|---|---|
| Dividend Yield (TTM) | 6.05% | 3.37% |
| Dividend Payout Ratio (TTM) | 40.23% | 52.58% |
Valuation
Price-to-Earnings Ratio
AES
6.70
Diversified Utilities Industry
- Max
- 25.08
- Q3
- 19.50
- Median
- 15.21
- Q1
- 11.42
- Min
- 2.74
In the lower quartile for the Diversified Utilities industry, AES’s P/E Ratio of 6.70 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
SRE
16.50
Diversified Utilities Industry
- Max
- 25.08
- Q3
- 19.50
- Median
- 15.21
- Q1
- 11.42
- Min
- 2.74
SRE’s P/E Ratio of 16.50 is within the middle range for the Diversified Utilities industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AES
2.33
Diversified Utilities Industry
- Max
- 3.39
- Q3
- 2.59
- Median
- 2.31
- Q1
- 1.97
- Min
- 1.69
AES’s Forward PEG Ratio of 2.33 is within the middle range of its peers in the Diversified Utilities industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
SRE
1.89
Diversified Utilities Industry
- Max
- 3.39
- Q3
- 2.59
- Median
- 2.31
- Q1
- 1.97
- Min
- 1.69
In the lower quartile for the Diversified Utilities industry, SRE’s Forward PEG Ratio of 1.89 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
Price-to-Sales Ratio
AES
0.68
Diversified Utilities Industry
- Max
- 3.68
- Q3
- 2.25
- Median
- 1.75
- Q1
- 0.80
- Min
- 0.47
In the lower quartile for the Diversified Utilities industry, AES’s P/S Ratio of 0.68 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
SRE
3.67
Diversified Utilities Industry
- Max
- 3.68
- Q3
- 2.25
- Median
- 1.75
- Q1
- 0.80
- Min
- 0.47
SRE’s P/S Ratio of 3.67 is in the upper echelon for the Diversified Utilities industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
AES
2.36
Diversified Utilities Industry
- Max
- 2.56
- Q3
- 1.75
- Median
- 1.29
- Q1
- 1.12
- Min
- 0.31
AES’s P/B Ratio of 2.36 is in the upper tier for the Diversified Utilities industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
SRE
1.55
Diversified Utilities Industry
- Max
- 2.56
- Q3
- 1.75
- Median
- 1.29
- Q1
- 1.12
- Min
- 0.31
SRE’s P/B Ratio of 1.55 is within the conventional range for the Diversified Utilities industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AES | SRE |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 6.70 | 16.50 |
| Forward PEG Ratio (TTM) | 2.33 | 1.89 |
| Price-to-Sales Ratio (P/S, TTM) | 0.68 | 3.67 |
| Price-to-Book Ratio (P/B, TTM) | 2.36 | 1.55 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -2.35 | -12.01 |
| EV-to-EBITDA (TTM) | 13.40 | 14.22 |
| EV-to-Sales (TTM) | 3.06 | 6.37 |