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HTO vs SRE

HTO
H2O America
BEARISH
Price
$59.67
Market Cap
$2.5B
Sector
Utilities
AI Confidence
85%
SRE
Sempra
BEARISH
Price
$97.78
Market Cap
$63.88B
Sector
Utilities
AI Confidence
75%

Valuation

P/E Ratio
HTO
20.43
SRE
35.55
Forward P/E
HTO
21.08
SRE
17.68
P/B Ratio
HTO
1.4
SRE
2.02
P/S Ratio
HTO
3.12
SRE
4.66
EV/EBITDA
HTO
13.36
SRE
19.79

Profitability

Gross Margin
HTO
57.03%
SRE
41.18%
Operating Margin
HTO
19.69%
SRE
27.74%
Profit Margin
HTO
12.81%
SRE
13.4%
ROE
HTO
7.06%
SRE
5.19%
ROA
HTO
2.39%
SRE
1.77%

Growth

Revenue Growth
HTO
-1.8%
SRE
-0.2%
Earnings Growth
HTO
-34.4%
SRE
-48.2%

Financial Health

Debt/Equity
HTO
1.28
SRE
0.83
Current Ratio
HTO
0.7
SRE
1.59
Quick Ratio
HTO
0.59
SRE
0.09

Dividends

Dividend Yield
HTO
2.95%
SRE
2.71%
Payout Ratio
HTO
57.53%
SRE
93.82%

AI Verdict

HTO BEARISH

HTO presents a concerning divergence between its market price and fundamental performance. While the Piotroski F-Score of 6/9 indicates stable financial health, the company is suffering from severe growth decay with YoY earnings plummeting by 34.40% and revenue contracting. The stock is currently trading near its 52-week high ($59.67) despite being significantly overvalued relative to its intrinsic value ($20.44) and slightly above its Graham Number ($52.94). With bearish insider sentiment and poor liquidity ratios, the current valuation appears unsustainable.

Strengths
Stable Piotroski F-Score (6/9) indicating baseline operational health
Profit margins (12.81%) and ROE (7.06%) outperform sector averages
Debt/Equity ratio (1.28) is lower than the utility sector average (1.70)
Risks
Severe earnings contraction (-34.40% YoY) and negative revenue growth
Poor short-term liquidity with a Current Ratio of 0.70 and Quick Ratio of 0.59
Significant valuation gap between current price and growth-based intrinsic value
SRE BEARISH

SRE shows bearish fundamentals based on deterministic rules. Financial strength is strong (F-Score 7/9). Concerns include weak profitability or high valuation.

Strengths
Strong financial trend (Piotroski F-Score: 7/9)
Risks
High valuation with P/E of 35.6
Premium vs Graham Number ($54.73)
Declining revenue (-0.2%)

Compare Another Pair

HTO vs SRE: Head-to-Head Comparison

This page compares H2O America (HTO) and Sempra (SRE) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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