H2O America (HTO)vsSempra Energy (SRE)
HTO
H2O America
$57.67
-2.68%
UTILITIES · Cap: $2.41B
SRE
Sempra Energy
$95.12
+2.68%
UTILITIES · Cap: $62.14B
Smart Verdict
WallStSmart Research — data-driven comparison
Sempra Energy generates 1579% more annual revenue ($13.70B vs $816.28M). SRE leads profitability with a 13.4% profit margin vs 12.9%. SRE appears more attractively valued with a PEG of 0.83. HTO earns a higher WallStSmart Score of 57/100 (C).
HTO
Buy57
out of 100
Grade: C
SRE
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.7%
Fair Value
$77.24
Current Price
$57.67
$19.57 discount
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
Reasonable price relative to book value
Strong operational efficiency at 21.5%
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
0.0% earnings growth
ROE of 6.5% — below average capital efficiency
Expensive relative to growth rate
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 : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
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 : HTO
The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.
Bear Case : SRE
The primary concerns for SRE are P/E Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
HTO profiles as a value stock while SRE is a declining play — different risk/reward profiles.
SRE carries more volatility with a beta of 0.68 — expect wider price swings.
HTO is growing revenue faster at 9.4% — sustainability is the question.
HTO generates stronger free cash flow (-239M), providing more financial flexibility.
Bottom Line
HTO scores higher overall (57/100 vs 56/100). 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.
H2O America
UTILITIES · UTILITIES - REGULATED WATER · USA
H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.
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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