The AES Corporation (AES) vs Sempra (SRE)

The AES Corporation and Sempra are both Utilities Diversified companies. Sempra is the larger, with a market value of $50.8B against $10.6B — 4.8× the size. The AES Corporation trades at the lower P/E: 5.7× against 22.5×. The AES Corporation grew revenue faster over the last twelve months: 8.49% against 1.62%. Sempra has the higher net margin (16.7% vs 14.3%) and the higher return on invested capital (2.29% vs 1.35%). Both pay a dividend; The AES Corporation yields more (4.20% vs 3.94%). Across the 22 metrics below, The AES Corporation leads on 13 and Sempra on 9.

Valuation

Metric AES SRE Utilities Diversified median
P/E 5.68 22.46 16.79
P/S 0.81 3.76 1.52
P/B 1.09 1.27 1.09
Price to free cash flow n/m n/m —
EV/EBITDA 16.23 16.49 9.57
EV/Sales 3.09 6.46 3.09
Earnings yield 17.62% 4.45% 5.97%
Free cash flow yield (16.22%) (10.29%) (7.56%)

Profitability

Metric AES SRE Utilities Diversified median
Gross margin 20.29% 88.11% 56.36%
Operating margin 6.53% 20.72% 18.94%
Net margin 14.34% 16.69% 11.83%
Free cash flow margin (13.18%) (38.69%) (7.63%)
Return on equity 21.45% 5.85% 8.31%
Return on assets 3.64% 2.10% 2.42%
Return on invested capital 1.35% 2.29% 3.72%

Growth

Metric AES SRE Utilities Diversified median
Revenue growth (TTM) 8.49% 1.62% 8.49%
EPS growth (last fiscal year) (46.61%) (37.78%) —
Revenue growth, 5-year CAGR 4.84% 3.80% 5.07%
Net income growth, 5-year CAGR 81.26% (13.76%) 9.16%

Health

Metric AES SRE Utilities Diversified median
Debt to equity 3.29 0.92 1.16
Current ratio 0.75 1.64 0.89
Net debt to EBITDA 16.81 7.01 6.19

Dividend

Metric AES SRE Utilities Diversified median
Dividend yield 4.20% 3.94% 4.20%
Payout ratio 0.76 0.59 —

Size

Metric AES SRE Utilities Diversified median
Market cap 10.59b 50.83b 9.78b

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