Analyzing Sempra Energy (NYSE:SRE) and AusNet Services (OTCMKTS:SAUNF)

AusNet Services (OTCMKTS:SAUNF) and Sempra Energy (NYSE:SRE) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

89.7% of Sempra Energy shares are held by institutional investors. 0.3% of Sempra Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for AusNet Services and Sempra Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AusNet Services	0	0	0	0	0.00
Sempra Energy	0	4	10	1	2.80

Sempra Energy has a consensus price target of $104.23, indicating a potential upside of 21.90%. Given Sempra Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Sempra Energy is more favorable than AusNet Services.

Profitability

This table compares AusNet Services and Sempra Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AusNet Services	N/A	N/A	N/A
Sempra Energy	16.70%	8.49%	2.98%

Valuation & Earnings

This table compares AusNet Services and Sempra Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AusNet Services	N/A	N/A	N/A	N/A	N/A
Sempra Energy	$13.70 billion	4.08	$1.84 billion	$3.45	24.78

Sempra Energy has higher revenue and earnings than AusNet Services.

Summary

Sempra Energy beats AusNet Services on 10 of the 10 factors compared between the two stocks.

About AusNet Services

AusNet Services Ltd. engages in the production and distribution of electricity and gas. It operates through the following segments: Electricity Distribution, Gas Distribution, Electricity Transmission, and Growth and Future Networks. The Electricity Distribution segment carries electricity from the high voltage transmission network to end users. The Gas Distribution segment handles the natural gas to commercial and residential end users. The Electricity Transmission segment owns and manages the vast majority of the electricity transmission network in Victoria. The Growth and Future Networks segment provides contracted infrastructure asset and energy services, as well as a range of asset and utility services to support the management of electricity, gas, and water networks. The company was founded in June 2005 and is headquartered in Southbank, Australia.

About Sempra Energy

Sempra operates as an energy infrastructure company in the United States and internationally. It operates through three segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. The Sempra California segment provides electric services; and natural gas services to San Diego County. As of December 31, 2023, it offered electric services to approximately 3.6 million population and natural gas services to approximately 3.3 million population that covers 4,100 square miles. This segment owns and operates a natural gas distribution, transmission, and storage system that supplies natural gas. As of December 31, 2023, it serves a population of 21 million covering an area of 24,000 square miles. The Sempra Texas Utilities segment engages in the regulated electricity transmission and distribution. As of December 31, 2023, its transmission system included 18,298 circuit miles of transmission lines; 1,257 transmission and distribution substations; interconnection to 173 third-party generation facilities totaling 54,277 MW; and distribution system included approximately 4.0 million points of delivery and consisted of 125,116 miles of overhead and underground lines. The Sempra Infrastructure segment develops, builds, operates, and invests in energy infrastructure to help enable the energy transition in North American markets and worldwide. The company was formerly known as Sempra Energy and changed its name to Sempra in May 2023. Sempra was incorporated in 1996 and is based in San Diego, California.