WallStSmart

Companhia Energetica de Minas Gerais CEMIG Pref ADR (CIG)vsSempra Energy (SRE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Companhia Energetica de Minas Gerais CEMIG Pref ADR generates 212% more annual revenue ($42.75B vs $13.70B). SRE leads profitability with a 13.4% profit margin vs 11.5%. CIG appears more attractively valued with a PEG of 0.33. CIG earns a higher WallStSmart Score of 72/100 (B).

CIG

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 10.0Quality: 5.5
Piotroski: 2/9Altman Z: 1.82

SRE

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 6.0Value: 7.3Quality: 4.3
Piotroski: 3/9Altman Z: 0.87
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CIGUndervalued (+84.7%)

Margin of Safety

+84.7%

Fair Value

$14.98

Current Price

$2.40

$12.58 discount

UndervaluedFair: $14.98Overvalued
SRESignificantly Overvalued (-387.6%)

Margin of Safety

-387.6%

Fair Value

$18.70

Current Price

$95.32

$76.62 premium

UndervaluedFair: $18.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CIG5 strengths · Avg: 9.6/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
88.1%10/10

Earnings expanding 88.1% YoY

Operating MarginProfitability
20.1%8/10

Strong operational efficiency at 20.1%

SRE3 strengths · Avg: 8.3/10
Market CapQuality
$62.06B9/10

Large-cap with strong market position

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.7%8/10

Strong operational efficiency at 27.7%

Areas to Watch

CIG3 concerns · Avg: 3.7/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

SRE4 concerns · Avg: 3.5/10
PEG RatioValuation
1.984/10

Expensive relative to growth rate

P/E RatioValuation
34.5x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
5.2%3/10

ROE of 5.2% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CIG

The strongest argument for CIG centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.33 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 : CIG

The primary concerns for CIG are Revenue Growth, Altman Z-Score, Piotroski F-Score.

Bear Case : SRE

The primary concerns for SRE are PEG Ratio, P/E Ratio, Return on Equity.

Key Dynamics to Monitor

CIG profiles as a value stock while SRE is a declining play — different risk/reward profiles.

SRE carries more volatility with a beta of 0.70 — expect wider price swings.

CIG is growing revenue faster at 2.9% — sustainability is the question.

CIG generates stronger free cash flow (440M), providing more financial flexibility.

Bottom Line

CIG scores higher overall (72/100 vs 52/100). 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.

Companhia Energetica de Minas Gerais CEMIG Pref ADR

UTILITIES · UTILITIES - DIVERSIFIED · USA

Companhia Energtica de Minas Gerais, is dedicated to the generation, transmission, distribution and sale of energy in Brazil. The company is headquartered in Belo Horizonte, Brazil.

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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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