DUK vs SRE: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
DUK (Duke Energy) and SRE (Sempra) share investment themes but are different businesses. The right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme.
DUK vs SRE: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | DUK | SRE | What it tells you |
|---|---|---|---|
| Forward P/E | 17.50 | 15.99 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 19.30 | 30.12 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.37 | 0.57 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 56% of range | 43% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 1.82 | 1.79 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Before you buy: how DUK and SRE affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. DUK and SRE share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined DUK and SRE exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Duke Energy (DUK) do?
Duke Energy is a holding company for a group of regulated electric and gas utilities serving roughly eight and a half million electric customers across six states, including the Carolinas, Florida, Indiana, Ohio, Kentucky, and Tennessee, plus natural gas distribution to over a million customers. As a regulated utility, Duke earns an authorized return on the capital it invests in power plants, poles, wires, and pipes, so its profit grows largely as it grows its regulated asset base, or rate base, subject to approval from state utility commissions. This regulated model produces relatively stable, predictable cash flows that fund a long-running dividend, which is the core of the income case for the stock.
What does Sempra (SRE) do?
Sempra (SRE) is a large regulated utility and energy infrastructure company headquartered in San Diego, California. Its core business is owning and operating regulated utilities that deliver electricity and natural gas to millions of customers. In California, Sempra owns San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), among the largest gas and electric utilities in the United States. In Texas, Sempra holds a controlling interest in Oncor, the largest regulated electric transmission and distribution utility in that fast-growing state. Beyond its regulated utilities, Sempra Infrastructure develops and operates liquefied natural gas (LNG) export terminals and related energy infrastructure, giving the company exposure to global gas demand alongside its steady, rate-regulated core. Most of Sempra's earnings come from regulated operations, where state and federal regulators set the rates it can charge and approve the capital it invests, producing relatively predictable cash flows that fund a growing dividend. Because so much of its business is regulated and capital-intensive, Sempra is widely viewed as a defensive, income-oriented, rate-sensitive way to invest in electricity and natural gas demand, grid modernization, electrification, and the buildout of energy infrastructure.
DUK vs SRE: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- DUK drivers: Rate-base growth from a $103B capital plan; Data-center and large-load demand.
- SRE drivers: Regulated utility earnings base; Texas and grid investment growth.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Duke is highly capital-intensive and carries substantial debt to fund its build-out, which makes it sensitive to interest rates: higher rates raise its borrowing costs and tend to compress the valuations investors assign to regulated utilities, while also making bond yields more competitive with its dividend. For SRE, as a regulated utility, Sempra's allowed returns are set by regulators, and unfavorable rate decisions or delays can pressure earnings.
DUK or SRE: which should you pick?
DUK vs SRE: the full fundamentals
DUK. As of late June 2026, DUK traded near the high-$120s per share with a market cap around ~$100 billion. The trailing P/E of roughly ~19x to ~20x is broadly in line with large regulated-utility peers, reflecting steady but moderate earnings growth rather than the higher multiples of faster-growing sectors. Revenue for full-year 2025 was about ~$31.8 billion, and Q1 2026 adjusted EPS was ~$1.93, up from ~$1.76 a year earlier. Figures are approximate, drawn from the Q1 2026 release and public market data, and move with the share price.
SRE. Sempra trades largely on its regulated earnings growth, dividend, and sensitivity to interest rates rather than on rapid revenue expansion. Utilities like Sempra are often valued on earnings growth plus yield, so the stock tends to strengthen when rates fall and weaken when rates rise. Regulatory rate decisions, capital investment plans, and the progress of LNG projects are the main swing factors. Figures are approximate and change with each quarter and with regulatory and market conditions; verify current numbers before relying on them.
Headline figures (approximate, 2026-06-27): DUK shows revenue (ttm) ~$31.8B, adjusted eps guidance (fy2026) ~$6.55 to ~$6.80, adjusted eps growth target ~5% to ~7% per year through 2030, dividend yield ~3.4%; SRE shows revenue (2025) ~$13.7 billion, 2026 eps guidance ~$4.25 to $4.65 (adjusted, company guidance), core business regulated electric and gas utilities, california utilities SDG&E and SoCalGas.
The bottom line: DUK vs SRE
DUK and SRE are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined DUK and SRE exposure against your real portfolio. It is not an investment adviser.
Wondering how DUK or SRE fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Duke Energy with AI
Connect the broker you already use and ask Walnut's AI how DUK fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between DUK and SRE?
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Duke Energy is a holding company for a group of regulated electric and gas utilities serving roughly eight and a half million electric customers across six states, including the Carolinas, Florida, Indiana, Ohio, Kentucky, and Tennessee, plus natural gas distribution to over a million customers. Sempra (SRE) is a large regulated utility and energy infrastructure company headquartered in San Diego, California. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is DUK or SRE the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, DUK or SRE?
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On forward P/E (as of August 2026), DUK trades at 17.50x and SRE at 15.99x, so SRE is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both DUK and SRE?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of DUK vs SRE?
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DUK: Duke is highly capital-intensive and carries substantial debt to fund its build-out, which makes it sensitive to interest rates: higher rates raise its borrowing costs and tend to compress the valuations investors assign to regulated utilities, while also making bond yields more competitive with its dividend. Its earnings depend on the outcomes of frequent rate cases before multiple state commissions, where regulators can grant less than requested, delay recovery, or impose conditions. The ~$103 billion capital plan carries execution, supply-chain, and financing risk, and the data-center load growth, though increasingly contracted, is not guaranteed. As a major operator in the Carolinas and Florida, Duke is also exposed to hurricanes and severe storms, which drive restoration costs that must be recovered through the regulatory process. SRE: As a regulated utility, Sempra's allowed returns are set by regulators, and unfavorable rate decisions or delays can pressure earnings. The business is capital intensive and carries substantial debt, so rising interest rates raise borrowing costs and can make the stock's dividend yield less attractive relative to bonds, weighing on the share price. California exposes it to wildfire liability, aggressive climate policy, and political scrutiny of utility rates. LNG and infrastructure projects add construction, permitting, and commodity risk. Growth is generally slower than the broader market. It is an income-oriented, rate-sensitive position, not a high-growth or purely defensive one.
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Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell DUK or SRE; figures are approximate and dated (as of August 2026). Verify current data before investing.