AWK vs. SRE: A Head-to-Head Stock Comparison

Updated on July 7, 2025

Here’s a clear look at AWK 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 AWK’s 27.31 billion USD, highlighting its more substantial market valuation.

With betas of 0.70 for AWK and 0.66 for SRE, both stocks show similar sensitivity to overall market movements.

Symbol	AWK	SRE
Company Name	American Water Works Company, Inc.	Sempra
Country	US	US
Sector	Utilities	Utilities
Industry	Regulated Water	Diversified Utilities
CEO	John C. Griffith	Jeffrey Walker Martin
Price	140.05 USD	75.12 USD
Market Cap	27.31 billion USD	48.99 billion USD
Beta	0.70	0.66
Exchange	NYSE	NYSE
IPO Date	April 23, 2008	June 29, 1998
ADR	No	No

Historical Performance

This chart compares the performance of AWK 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.

AWK vs. SRE: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AWK

10.35%

Regulated Water Industry

Max: 10.35%
Q3: 10.08%
Median: 8.98%
Q1: 8.05%
Min: 7.36%

In the upper quartile for the Regulated Water industry, AWK’s Return on Equity of 10.35% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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.

AWK vs. SRE: A comparison of their ROE against their respective Regulated Water and Diversified Utilities industry benchmarks.

Return on Invested Capital

AWK

4.28%

Regulated Water Industry

Max: 6.92%
Q3: 6.34%
Median: 4.28%
Q1: 3.77%
Min: 2.54%

AWK’s Return on Invested Capital of 4.28% is in line with the norm for the Regulated Water 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.

AWK vs. SRE: A comparison of their ROIC against their respective Regulated Water and Diversified Utilities industry benchmarks.

Net Profit Margin

AWK

22.24%

Regulated Water Industry

Max: 27.17%
Q3: 24.08%
Median: 20.75%
Q1: 16.72%
Min: 6.15%

AWK’s Net Profit Margin of 22.24% is aligned with the median group of its peers in the Regulated Water 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.

AWK vs. SRE: A comparison of their Net Profit Margin against their respective Regulated Water and Diversified Utilities industry benchmarks.

Operating Profit Margin

AWK

36.59%

Regulated Water Industry

Max: 42.87%
Q3: 36.84%
Median: 28.06%
Q1: 23.46%
Min: 12.18%

AWK’s Operating Profit Margin of 36.59% is around the midpoint for the Regulated Water 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.

AWK vs. SRE: A comparison of their Operating Margin against their respective Regulated Water and Diversified Utilities industry benchmarks.

Profitability at a Glance

Symbol	AWK	SRE
Return on Equity (TTM)	10.35%	9.72%
Return on Assets (TTM)	3.23%	3.00%
Return on Invested Capital (TTM)	4.28%	3.07%
Net Profit Margin (TTM)	22.24%	22.24%
Operating Profit Margin (TTM)	36.59%	22.65%
Gross Profit Margin (TTM)	56.18%	42.14%

Financial Strength

Current Ratio

AWK

0.49

Regulated Water Industry

Max: 0.98
Q3: 0.94
Median: 0.81
Q1: 0.59
Min: 0.46

AWK’s Current Ratio of 0.49 falls into the lower quartile for the Regulated Water industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

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.

AWK vs. SRE: A comparison of their Current Ratio against their respective Regulated Water and Diversified Utilities industry benchmarks.

Debt-to-Equity Ratio

AWK

1.38

Regulated Water Industry

Max: 1.38
Q3: 1.15
Median: 0.90
Q1: 0.77
Min: 0.68

AWK’s leverage is in the upper quartile of the Regulated Water industry, with a Debt-to-Equity Ratio of 1.38. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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.

AWK vs. SRE: A comparison of their D/E Ratio against their respective Regulated Water and Diversified Utilities industry benchmarks.

Interest Coverage Ratio

AWK

3.24

Regulated Water Industry

Max: 4.22
Q3: 4.04
Median: 3.07
Q1: 3.00
Min: 2.48

AWK’s Interest Coverage Ratio of 3.24 is positioned comfortably within the norm for the Regulated Water industry, indicating a standard and healthy capacity to cover its interest payments.

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.

AWK vs. SRE: A comparison of their Interest Coverage against their respective Regulated Water and Diversified Utilities industry benchmarks.

Financial Strength at a Glance

Symbol	AWK	SRE
Current Ratio (TTM)	0.49	0.57
Quick Ratio (TTM)	0.44	0.51
Debt-to-Equity Ratio (TTM)	1.38	1.19
Debt-to-Asset Ratio (TTM)	0.44	0.38
Net Debt-to-EBITDA Ratio (TTM)	5.31	6.02
Interest Coverage Ratio (TTM)	3.24	2.57

Growth

The following charts compare key year-over-year (YoY) growth metrics for AWK and SRE. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AWK vs. SRE: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AWK vs. SRE: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AWK vs. SRE: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AWK

2.23%

Regulated Water Industry

Max: 3.58%
Q3: 2.94%
Median: 2.44%
Q1: 2.07%
Min: 0.81%

AWK’s Dividend Yield of 2.23% is consistent with its peers in the Regulated Water industry, providing a dividend return that is standard for its sector.

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.

AWK vs. SRE: A comparison of their Dividend Yield against their respective Regulated Water and Diversified Utilities industry benchmarks.

Dividend Payout Ratio

AWK

55.65%

Regulated Water Industry

Max: 99.35%
Q3: 57.39%
Median: 55.65%
Q1: 52.94%
Min: 0.00%

AWK’s Dividend Payout Ratio of 55.65% is within the typical range for the Regulated Water industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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.

AWK vs. SRE: A comparison of their Payout Ratio against their respective Regulated Water and Diversified Utilities industry benchmarks.

Dividend at a Glance

Symbol	AWK	SRE
Dividend Yield (TTM)	2.23%	3.37%
Dividend Payout Ratio (TTM)	55.65%	52.58%

Valuation

Price-to-Earnings Ratio

AWK

25.50

Regulated Water Industry

Max: 26.42
Q3: 23.54
Median: 20.16
Q1: 17.14
Min: 8.21

A P/E Ratio of 25.50 places AWK in the upper quartile for the Regulated Water industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

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.

AWK vs. SRE: A comparison of their P/E Ratio against their respective Regulated Water and Diversified Utilities industry benchmarks.

Forward P/E to Growth Ratio

AWK

3.73

Regulated Water Industry

Max: 3.77
Q3: 3.33
Median: 2.11
Q1: 1.48
Min: 0.23

A Forward PEG Ratio of 3.73 places AWK in the upper quartile for the Regulated Water industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

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.

AWK vs. SRE: A comparison of their Forward PEG Ratio against their respective Regulated Water and Diversified Utilities industry benchmarks.

Price-to-Sales Ratio

AWK

5.67

Regulated Water Industry

Max: 6.05
Q3: 4.92
Median: 3.71
Q1: 2.93
Min: 2.18

AWK’s P/S Ratio of 5.67 is in the upper echelon for the Regulated Water 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.

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.

AWK vs. SRE: A comparison of their P/S Ratio against their respective Regulated Water and Diversified Utilities industry benchmarks.

Price-to-Book Ratio

AWK

2.59

Regulated Water Industry

Max: 3.06
Q3: 2.19
Median: 1.97
Q1: 1.62
Min: 1.25

AWK’s P/B Ratio of 2.59 is in the upper tier for the Regulated Water 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.

AWK vs. SRE: A comparison of their P/B Ratio against their respective Regulated Water and Diversified Utilities industry benchmarks.

Valuation at a Glance

Symbol	AWK	SRE
Price-to-Earnings Ratio (P/E, TTM)	25.50	16.50
Forward PEG Ratio (TTM)	3.73	1.89
Price-to-Sales Ratio (P/S, TTM)	5.67	3.67
Price-to-Book Ratio (P/B, TTM)	2.59	1.55
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	-31.04	-12.01
EV-to-EBITDA (TTM)	15.39	14.22
EV-to-Sales (TTM)	8.66	6.37