Hawaiian Electric Industries (NYSE: HE) is one of 82 public companies in the “Electric Utilities” industry, but how does it contrast to its rivals? We will compare Hawaiian Electric Industries to similar businesses based on the strength of its risk, institutional ownership, valuation, analyst recommendations, earnings, profitability and dividends.

Institutional and Insider Ownership

47.9% of Hawaiian Electric Industries shares are held by institutional investors. Comparatively, 65.4% of shares of all “Electric Utilities” companies are held by institutional investors. 0.9% of Hawaiian Electric Industries shares are held by company insiders. Comparatively, 2.7% of shares of all “Electric Utilities” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Hawaiian Electric Industries has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Hawaiian Electric Industries’ rivals have a beta of 0.66, suggesting that their average stock price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Hawaiian Electric Industries and its rivals, 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 534 2960 2385 42 2.33

Hawaiian Electric Industries presently has a consensus price target of $32.33, indicating a potential downside of 12.73%. As a group, “Electric Utilities” companies have a potential upside of 7.08%. Given Hawaiian Electric Industries’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Hawaiian Electric Industries has less favorable growth aspects than its rivals.

Profitability

This table compares Hawaiian Electric Industries and its rivals’ 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 -6.54% 9.46% 2.64%

Dividends

Hawaiian Electric Industries pays an annual dividend of $1.24 per share and has a dividend yield of 3.3%. 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 103.8% of their earnings in the form of a dividend. Hawaiian Electric Industries is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Hawaiian Electric Industries and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Hawaiian Electric Industries $2.38 billion $250.14 million 22.73
Hawaiian Electric Industries Competitors $7.66 billion $831.80 million 49.22

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

Summary

Hawaiian Electric Industries rivals beat Hawaiian Electric Industries on 12 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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