The AES Corporation (AES)vsSempra Energy (SRE)
AES
The AES Corporation
$14.06
-0.50%
UTILITIES · Cap: $10.07B
SRE
Sempra Energy
$95.32
+0.34%
UTILITIES · Cap: $62.06B
Smart Verdict
WallStSmart Research — data-driven comparison
Sempra Energy generates 12% more annual revenue ($13.70B vs $12.23B). SRE leads profitability with a 13.4% profit margin vs 7.4%. AES appears more attractively valued with a PEG of 1.09. AES earns a higher WallStSmart Score of 55/100 (C).
AES
Buy55
out of 100
Grade: C
SRE
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.5%
Fair Value
$8.91
Current Price
$14.06
$5.15 premium
Margin of Safety
-387.6%
Fair Value
$18.70
Current Price
$95.32
$76.62 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 27.7%
Areas to Watch
4.7% revenue growth
ROE of 1.9% — below average capital efficiency
7.4% margin — thin
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of 5.2% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : AES
The strongest argument for AES centers on P/E Ratio, Price/Book. PEG of 1.09 suggests the stock is reasonably priced for its growth.
Bull Case : SRE
The strongest argument for SRE centers on Market Cap, Price/Book, Operating Margin.
Bear Case : AES
The primary concerns for AES are Revenue Growth, Return on Equity, Profit Margin. Debt-to-equity of 7.98 is elevated, increasing financial risk.
Bear Case : SRE
The primary concerns for SRE are PEG Ratio, P/E Ratio, Return on 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 0.94 — expect wider price swings.
AES is growing revenue faster at 4.7% — sustainability is the question.
AES generates stronger free cash flow (-47M), providing more financial flexibility.
Bottom Line
AES scores higher overall (55/100 vs 52/100). Both earn "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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