Hawaiian Electric Industries (NYSE:HE – Get Free Report) and MGE Energy (NASDAQ:MGEE – Get Free Report) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Institutional & Insider Ownership
59.9% of Hawaiian Electric Industries shares are held by institutional investors. Comparatively, 52.6% of MGE Energy shares are held by institutional investors. 0.2% of Hawaiian Electric Industries shares are held by company insiders. Comparatively, 0.4% of MGE Energy shares 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.
Risk & Volatility
Hawaiian Electric Industries has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, MGE Energy has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Hawaiian Electric Industries | 6.89% | 7.90% | 1.48% |
| MGE Energy | 19.45% | 11.10% | 4.74% |
Earnings and Valuation
This table compares Hawaiian Electric Industries and MGE Energy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hawaiian Electric Industries | $3.09 billion | 0.49 | $126.28 million | $1.30 | 6.74 |
| MGE Energy | $743.65 million | 3.57 | $135.89 million | $4.07 | 17.25 |
MGE Energy has lower revenue, but higher earnings than Hawaiian Electric Industries. Hawaiian Electric Industries is trading at a lower price-to-earnings ratio than MGE Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Hawaiian Electric Industries and MGE Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hawaiian Electric Industries | 4 | 1 | 0 | 0 | 1.20 |
| MGE Energy | 1 | 2 | 1 | 0 | 2.00 |
Hawaiian Electric Industries presently has a consensus target price of $7.67, indicating a potential downside of 12.53%. MGE Energy has a consensus target price of $76.00, indicating a potential upside of 8.23%. Given MGE Energy’s stronger consensus rating and higher possible upside, analysts clearly believe MGE Energy is more favorable than Hawaiian Electric Industries.
Summary
MGE Energy beats Hawaiian Electric Industries on 12 of the 14 factors compared between the two stocks.
About Hawaiian Electric Industries
Hawaiian Electric Industries, Inc., together with its subsidiaries, engages in the electric utility businesses in the United States. It operates in three segments: Electric Utility, Bank, and Other. The Electric Utility segment engages in the production, purchase, transmission, distribution, and sale of electricity in the islands of Oahu, Hawaii, Maui, Lanai, and Molokai. Its renewable energy sources and potential sources include wind, solar, photovoltaic, geothermal, wave, hydroelectric, municipal waste, and other biofuels. This segment serves suburban communities, resorts, the United States Armed Forces installations, and agricultural operations. The Bank segment operates a federally chartered savings bank that offers banking and other financial services to consumers and businesses, including savings and checking accounts; and loans comprising residential and commercial real estate, residential mortgage, construction and development, multifamily residential and commercial real estate, consumer, and commercial loans. The Other segment invests in non-regulated renewable energy and sustainable infrastructure in the State of Hawaii. Hawaiian Electric Industries, Inc. was founded in 1891 and is headquartered in Honolulu, Hawaii.
About MGE Energy
MGE Energy, Inc., through its subsidiaries, operates as a public utility holding company primarily in the United States. It operates through Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other segments. The company generates, purchases, and distributes electricity and natural gas in Wisconsin and Iowa; owns and leases electric generating capacity; and plans, constructs, operates, maintains, and expands transmission facilities to provide transmission power services. It generates electricity from coal-fired, gas-fired, and renewable energy sources. As of December 31, 2023, the company owned and operated 835 miles of overhead electric distribution lines; 1,330 miles of underground electric distribution cables; 49 substations with an installed capacity of 1.2 million kVA; and gas facilities, including 3,066 miles of distribution mains, as well as supplied electric service to approximately 163,000 customers. MGE Energy, Inc. founded in 2001 and is headquartered in Madison, Wisconsin.
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