Comparing Archaea Energy (NYSE:LFG) and Sempra (NYSE:SRE)

Archaea Energy (NYSE:LFGGet Rating) and Sempra (NYSE:SREGet Rating) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Archaea Energy N/A N/A -9.66%
Sempra 8.44% 10.96% 3.87%

Earnings and Valuation

This table compares Archaea Energy and Sempra’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Archaea Energy $77.13 million 26.81 -$23.90 million N/A N/A
Sempra $12.86 billion 3.58 $1.32 billion $3.17 46.17

Sempra has higher revenue and earnings than Archaea Energy.

Risk and Volatility

Archaea Energy has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Sempra has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Archaea Energy and Sempra, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archaea Energy 0 0 5 0 3.00
Sempra 0 4 5 0 2.56

Archaea Energy currently has a consensus target price of $28.80, indicating a potential upside of 66.67%. Sempra has a consensus target price of $159.67, indicating a potential upside of 9.10%. Given Archaea Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Archaea Energy is more favorable than Sempra.

Institutional and Insider Ownership

55.9% of Archaea Energy shares are owned by institutional investors. Comparatively, 86.1% of Sempra shares are owned by institutional investors. 36.7% of Archaea Energy shares are owned by insiders. Comparatively, 0.1% of Sempra shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Sempra beats Archaea Energy on 7 of the 11 factors compared between the two stocks.

About Archaea Energy (Get Rating)

Archaea Energy Inc. operates as a renewable natural gas (RNG) and renewable electricity producer in the United States. It owns and operates a diversified portfolio of 23 landfill gas recovery and processing projects across 12 states, including 13 projects that collectively generate approximately 177.3 MW of electric capacity and 10 projects that have capacity to produce approximately 27,480 million of British thermal units per day of pipeline-quality RNG. The company was founded in 2018 and is based in Houston, Texas.

About Sempra (Get Rating)

Sempra operates as an energy-services holding company in the United States and internationally. The company's San Diego Gas & Electric Company segment provides electric services; and supplies natural gas. It offers electric services to approximately 3.6 million population and natural gas services to approximately 3.3 million population that covers 4,100 square miles. Its Southern California Gas Company segment owns and operates a natural gas distribution, transmission, and storage system that supplies natural gas to a population of approximately 22 million covering an area of 24,000 square miles. The company's Sempra Texas Utilities segment engages in the regulated transmission and distribution of electricity serving 3.8 million homes and businesses, and operation of 140,000 miles of transmission and distribution lines. Its transmission system includes 18,249 circuit miles of transmission lines, a total of 1,174 transmission and distribution substations, and interconnection to 130 third-party generation facilities totaling 45,403 megawatts. The company was formerly known as Sempra Energy and changed its name to Sempra in July 2021. Sempra was founded in 1998 and is headquartered in San Diego, California.

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