Hawaiian Electric Industries (NYSE: HE) is one of 84 public companies in the “Electric Utilities” industry, but how does it compare to its peers? We will compare Hawaiian Electric Industries to similar companies based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Volatility & Risk

Hawaiian Electric Industries has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Hawaiian Electric Industries’ peers have a beta of 0.65, indicating that their average stock price is 35% less volatile than the S&P 500.

Valuation & Earnings

This table compares Hawaiian Electric Industries and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Hawaiian Electric Industries $2.38 billion $250.14 million 22.23
Hawaiian Electric Industries Competitors $7.53 billion $821.25 million 48.66

Hawaiian Electric Industries’ peers have higher revenue and earnings than Hawaiian Electric Industries. Hawaiian Electric Industries is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Hawaiian Electric Industries and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hawaiian Electric Industries 7.14% 8.64% 1.42%
Hawaiian Electric Industries Competitors -5.85% 8.06% 2.55%

Institutional and Insider Ownership

47.9% of Hawaiian Electric Industries shares are owned by institutional investors. Comparatively, 65.9% of shares of all “Electric Utilities” companies are owned by institutional investors. 0.9% of Hawaiian Electric Industries shares are owned by insiders. Comparatively, 2.6% of shares of all “Electric Utilities” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Hawaiian Electric Industries pays an annual dividend of $1.24 per share and has a dividend yield of 3.4%. Hawaiian Electric Industries pays out 76.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 97.6% of their earnings in the form of a dividend. Hawaiian Electric Industries is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Hawaiian Electric Industries and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawaiian Electric Industries 3 1 0 0 1.25
Hawaiian Electric Industries Competitors 547 3061 2459 45 2.33

Hawaiian Electric Industries presently has a consensus target price of $32.33, suggesting a potential downside of 10.76%. As a group, “Electric Utilities” companies have a potential upside of 7.10%. Given Hawaiian Electric Industries’ peers stronger consensus rating and higher possible upside, analysts clearly believe Hawaiian Electric Industries has less favorable growth aspects than its peers.

Summary

Hawaiian Electric Industries peers beat Hawaiian Electric Industries on 11 of the 15 factors compared.

Hawaiian Electric Industries Company Profile

Hawaiian Electric Industries, Inc. is a holding company with its principal subsidiaries engaged in electric utility and banking businesses operating primarily in the State of Hawaii. The Company’s subsidiaries include Hawaiian Electric Company, Inc. (Hawaiian Electric) and ASB Hawaii, Inc. (ASB Hawaii). Its segments include Electric utility, Bank and Other. It operates its electric utility business through Hawaiian Electric and its subsidiaries, Hawaii Electric Light Company, Inc. (Hawaii Electric Light) and Maui Electric Company, Limited (Maui Electric). It operates its Bank segment through ASB Hawaii’s subsidiary, American Savings Bank, F.S.B. (ASB). Its electric public utilities are in the business of generating, purchasing, transmitting, distributing and selling electric energy. ASB is a federally chartered savings bank providing a range of banking services to individual and business customers.

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