The AES Corporation (AES)vsSempra Energy (SRE)
AES
The AES Corporation
$14.67
-0.41%
UTILITIES · Cap: $10.47B
SRE
Sempra Energy
$90.34
+0.82%
UTILITIES · Cap: $58.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Sempra Energy generates 9% more annual revenue ($13.55B vs $12.49B). SRE leads profitability with a 14.4% profit margin vs 10.8%. SRE appears more attractively valued with a PEG of 0.78. AES earns a higher WallStSmart Score of 71/100 (B).
AES
Strong Buy71
out of 100
Grade: B
SRE
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-44.1%
Fair Value
$11.41
Current Price
$14.67
$3.26 premium
Margin of Safety
-51.4%
Fair Value
$60.40
Current Price
$90.34
$29.94 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 951.0% YoY
Reasonable price relative to book value
Strong operational efficiency at 30.6%
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Premium valuation, high expectations priced in
ROE of 6.4% — below average capital efficiency
Elevated debt levels
Revenue declined 3.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : AES
The strongest argument for AES centers on P/E Ratio, Return on Equity, EPS Growth. PEG of 1.09 suggests the stock is reasonably priced for its growth.
Bull Case : SRE
The strongest argument for SRE centers on Operating Margin, Market Cap, PEG Ratio. PEG of 0.78 suggests the stock is reasonably priced for its growth.
Bear Case : AES
The primary concerns for AES are Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 7.01 is elevated, increasing financial risk.
Bear Case : SRE
The primary concerns for SRE are P/E Ratio, Return on Equity, Debt/Equity.
Key Dynamics to Monitor
AES profiles as a value stock while SRE is a declining play — different risk/reward profiles.
AES carries more volatility with a beta of 0.95 — expect wider price swings.
AES is growing revenue faster at 8.7% — sustainability is the question.
AES generates stronger free cash flow (-565M), providing more financial flexibility.
Bottom Line
AES scores higher overall (71/100 vs 64/100). Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
The AES Corporation
UTILITIES · UTILITIES - DIVERSIFIED · USA
The AES Corporation is a Fortune 500 company that generates and distributes electrical power. AES is headquartered in Arlington, Virginia.
Visit Website →Sempra Energy
UTILITIES · UTILITIES - DIVERSIFIED · USA
Sempra Energy is a North American energy infrastructure company based in San Diego, California. Sempra Energy's focus is on electric and natural gas infrastructure. Its operating companies include: Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E) in Southern California; Oncor Electric Delivery Company (Oncor) in Texas; Sempra LNG; and IEnova, based in Mexico.
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