WallStSmart

Duke Energy Corporation (DUK)vsSempra Energy (SRE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Duke Energy Corporation generates 142% more annual revenue ($32.80B vs $13.55B). SRE leads profitability with a 16.8% profit margin vs 16.0%. SRE appears more attractively valued with a PEG of 0.70. SRE earns a higher WallStSmart Score of 68/100 (B-).

DUK

Buy

63

out of 100

Grade: C+

Growth: 4.7Profit: 7.0Value: 4.7Quality: 3.0
Piotroski: 3/9Altman Z: 0.52

SRE

Strong Buy

68

out of 100

Grade: B-

Growth: 4.7Profit: 6.5Value: 5.3Quality: 4.5
Piotroski: 4/9Altman Z: 0.97
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DUKSignificantly Overvalued (-79.6%)

Margin of Safety

-79.6%

Fair Value

$66.50

Current Price

$119.42

$52.92 premium

UndervaluedFair: $66.50Overvalued
SRESignificantly Overvalued (-36.8%)

Margin of Safety

-36.8%

Fair Value

$60.93

Current Price

$83.34

$22.41 premium

UndervaluedFair: $60.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DUK4 strengths · Avg: 8.3/10
Market CapQuality
$93.11B9/10

Large-cap with strong market position

P/E RatioValuation
18.0x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.5%8/10

Strong operational efficiency at 27.5%

SRE5 strengths · Avg: 8.6/10
EPS GrowthGrowth
71.3%10/10

Earnings expanding 71.3% YoY

Market CapQuality
$54.50B9/10

Large-cap with strong market position

PEG RatioValuation
0.708/10

Growing faster than its price suggests

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.3%8/10

Strong operational efficiency at 28.3%

Areas to Watch

DUK4 concerns · Avg: 3.5/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

Debt/EquityHealth
1.673/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SRE4 concerns · Avg: 2.5/10
Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Debt/EquityHealth
1.123/10

Elevated debt levels

Revenue GrowthGrowth
-0.1%2/10

Revenue declined 0.1%

Free Cash FlowQuality
$-1.57B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : DUK

The strongest argument for DUK centers on Market Cap, P/E Ratio, Price/Book. Profitability is solid with margins at 16.0% and operating margin at 27.5%.

Bull Case : SRE

The strongest argument for SRE centers on EPS Growth, Market Cap, PEG Ratio. Profitability is solid with margins at 16.8% and operating margin at 28.3%. PEG of 0.70 suggests the stock is reasonably priced for its growth.

Bear Case : DUK

The primary concerns for DUK are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.67 is elevated, increasing financial risk.

Bear Case : SRE

The primary concerns for SRE are Return on Equity, Debt/Equity, Revenue Growth.

Key Dynamics to Monitor

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

SRE carries more volatility with a beta of 0.56 — expect wider price swings.

DUK is growing revenue faster at 1.1% — sustainability is the question.

SRE generates stronger free cash flow (-1.6B), providing more financial flexibility.

Bottom Line

SRE scores higher overall (68/100 vs 63/100), backed by strong 16.8% margins. 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.

Duke Energy Corporation

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Duke Energy Corporation is an American electric power and natural gas holding company headquartered in Charlotte, North Carolina.

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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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