Avista Corporation (AVA) vs Sempra (SRE)

Avista Corporation and Sempra are both Utilities Diversified companies. Sempra is the larger, with a market value of $50.8B against $2.9B — 17.3× the size. Avista Corporation trades at the lower P/E: 12.7× against 22.5×. Sempra grew revenue faster over the last twelve months: 1.62% against −1.84%. Sempra has the higher net margin (16.7% vs 11.8%) and the lower return on invested capital (2.29% vs 3.72%). Both pay a dividend; Avista Corporation yields more (5.59% vs 3.94%). Across the 22 metrics below, Avista Corporation leads on 17 and Sempra on 5.

Valuation

Metric AVA SRE Utilities Diversified median
P/E 12.68 22.46 16.79
P/S 1.52 3.76 1.52
P/B 1.03 1.27 1.09
Price to free cash flow n/m n/m —
EV/EBITDA 9.57 16.49 9.57
EV/Sales 3.21 6.46 3.09
Earnings yield 7.89% 4.45% 5.97%
Free cash flow yield (3.57%) (10.29%) (7.56%)

Profitability

Metric AVA SRE Utilities Diversified median
Gross margin 100.00% 88.11% 56.36%
Operating margin 18.76% 20.72% 18.94%
Net margin 11.83% 16.69% 11.83%
Free cash flow margin (5.42%) (38.69%) (7.63%)
Return on equity 8.31% 5.85% 8.31%
Return on assets 2.73% 2.10% 2.42%
Return on invested capital 3.72% 2.29% 3.72%

Growth

Metric AVA SRE Utilities Diversified median
Revenue growth (TTM) (1.84%) 1.62% 8.49%
EPS growth (last fiscal year) 3.93% (37.78%) —
Revenue growth, 5-year CAGR 8.24% 3.80% 5.07%
Net income growth, 5-year CAGR 8.31% (13.76%) 9.16%

Health

Metric AVA SRE Utilities Diversified median
Debt to equity 1.16 0.92 1.16
Current ratio 1.10 1.64 0.89
Net debt to EBITDA 4.92 7.01 6.19

Dividend

Metric AVA SRE Utilities Diversified median
Dividend yield 5.59% 3.94% 4.20%
Payout ratio 0.93 0.59 —

Size

Metric AVA SRE Utilities Diversified median
Market cap 2.94b 50.83b 9.78b

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