Home Energy services Critical Comparison: Archaea Energy (NYSE: LFG) and Sempra (NYSE: SRE)

Critical Comparison: Archaea Energy (NYSE: LFG) and Sempra (NYSE: SRE)

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Archaea Energy (NYSE: LFGGet a rating) and Sempra (NYSE: SREGet a rating) are both oil/energy companies, but which is the better investment? We’ll compare the two companies based on earnings strength, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Insider and Institutional Ownership

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

Analyst Recommendations

This is a summary of the current ratings for Archaea Energy and Sempra, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Archaea Energy 0 0 5 0 3.00
sempra 0 1 seven 0 2.88

Archaea Energy currently has a consensus target price of $28.80, suggesting a potential upside of 119.51%. Sempra has a consensus target price of $165.50, suggesting a potential upside of 11.82%. Given Archaea Energy’s stronger consensus rating and higher likely upside potential, equity research analysts clearly believe Archaea Energy is more favorable than Sempra.

Profitability

This table compares the net margins, return on equity and return on assets of Archaea Energy and Sempra.

Net margins Return on equity return on assets
Archaea Energy N / A N / A -9.66%
sempra 8.44% 10.96% 3.87%

Valuation and benefits

This table compares the revenue, earnings per share (EPS) and valuation of Archaea Energy and Sempra.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Archaea Energy $77.13 million 20.36 -$23.90 million N / A N / A
sempra $12.86 billion 3.62 $1.32 billion $3.17 46.69

Sempra has higher revenues and profits than Archaea Energy.

Volatility and risk

Archaea Energy has a beta of 1.04, indicating its stock price is 4% more volatile than the S&P 500. In comparison, Sempra has a beta of 0.64, indicating its stock price is 36% less volatile than the S&P 500.

Summary

Sempra beats Archaea Energy on 7 of the 12 factors compared between the two stocks.

Archaea Energy Company Profile (Get a rating)

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

Sempra Company Profile (Get a 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 electrical services; and supplies natural gas. It provides electric services to approximately 3.6 million residents and natural gas services to approximately 3.3 million residents that cover 4,100 square miles. Its Southern California Gas Company segment owns and operates a natural gas distribution, transportation and storage system that supplies natural gas to a population of approximately 22 million people covering an area of ​​24,000 square miles. The company’s Sempra Texas Utilities segment is engaged in the regulated transmission and distribution of electricity serving 3.8 million homes and businesses, and operating 140,000 miles of transmission and distribution lines . Its transmission network includes 18,249 circuit miles of transmission lines, a total of 1,174 transmission and distribution substations, and interconnection with 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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