American Water Works (AWK)vsSempra Energy (SRE)
AWK
American Water Works
$128.42
-2.69%
UTILITIES · Cap: $25.77B
SRE
Sempra Energy
$95.12
+2.68%
UTILITIES · Cap: $62.14B
Smart Verdict
WallStSmart Research — data-driven comparison
Sempra Energy generates 167% more annual revenue ($13.70B vs $5.14B). AWK leads profitability with a 21.6% profit margin vs 13.4%. SRE appears more attractively valued with a PEG of 0.83. AWK earns a higher WallStSmart Score of 62/100 (C+).
AWK
Buy62
out of 100
Grade: C+
SRE
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-12.2%
Fair Value
$110.27
Current Price
$128.42
$18.15 premium
Margin of Safety
-31.9%
Fair Value
$69.13
Current Price
$95.12
$25.99 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 32.2%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 27.7%
Areas to Watch
Expensive relative to growth rate
0.0% earnings growth
Weak financial health signals
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
ROE of 5.2% — below average capital efficiency
Weak financial health signals
Revenue declined 0.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : AWK
The strongest argument for AWK centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.6% and operating margin at 32.2%.
Bull Case : SRE
The strongest argument for SRE centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.83 suggests the stock is reasonably priced for its growth.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, EPS Growth, Piotroski F-Score.
Bear Case : SRE
The primary concerns for SRE are P/E Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
AWK profiles as a mature stock while SRE is a declining play — different risk/reward profiles.
AWK carries more volatility with a beta of 0.73 — expect wider price swings.
AWK is growing revenue faster at 5.8% — sustainability is the question.
AWK generates stronger free cash flow (-385M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (62/100 vs 56/100), backed by strong 21.6% margins. Both earn "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.
American Water Works
UTILITIES · UTILITIES - REGULATED WATER · USA
American Water is an American public utility company operating in the United States and Canada.
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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