Algonquin Power & Utilities Corp (AQN)vsSempra Energy (SRE)
AQN
Algonquin Power & Utilities Corp
$5.31
-2.21%
UTILITIES · Cap: $4.37B
SRE
Sempra Energy
$83.34
-0.79%
UTILITIES · Cap: $54.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Sempra Energy generates 432% more annual revenue ($13.55B vs $2.55B). SRE leads profitability with a 16.8% profit margin vs 5.9%. AQN trades at a lower P/E of 23.7x. SRE earns a higher WallStSmart Score of 68/100 (B-).
AQN
Hold48
out of 100
Grade: D+
SRE
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+69.9%
Fair Value
$21.96
Current Price
$5.31
$16.65 discount
Margin of Safety
-36.8%
Fair Value
$60.93
Current Price
$83.34
$22.41 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 71.3% YoY
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 28.3%
Areas to Watch
3.1% revenue growth
ROE of 3.6% — below average capital efficiency
5.9% margin — thin
Elevated debt levels
ROE of 7.0% — below average capital efficiency
Elevated debt levels
Revenue declined 0.1%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : AQN
The strongest argument for AQN centers on Price/Book.
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 : AQN
The primary concerns for AQN are Revenue Growth, Return on Equity, Profit Margin.
Bear Case : SRE
The primary concerns for SRE are Return on Equity, Debt/Equity, Revenue Growth.
Key Dynamics to Monitor
AQN profiles as a value stock while SRE is a declining play — different risk/reward profiles.
AQN carries more volatility with a beta of 0.89 — expect wider price swings.
AQN is growing revenue faster at 3.1% — sustainability is the question.
AQN generates stronger free cash flow (124M), providing more financial flexibility.
Bottom Line
SRE scores higher overall (68/100 vs 48/100), backed by strong 16.8% margins. AQN offers better value entry with a 69.9% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Algonquin Power & Utilities Corp
UTILITIES · UTILITIES - DIVERSIFIED · USA
Algonquin Power & Utilities Corp. The company is headquartered in Oakville, Canada.
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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