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 stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.
Dividends
Hawaiian Electric Industries pays an annual dividend of $1.44 per share and has a dividend yield of 16.7%. MGE Energy pays an annual dividend of $2.03 per share and has a dividend yield of 2.6%. Hawaiian Electric Industries pays out 109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MGE Energy pays out 46.9% of its earnings in the form of a dividend. MGE Energy has increased its dividend for 49 consecutive years.
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 | $3.50 billion | 0.43 | $126.28 million | $1.32 | 6.54 |
| MGE Energy | $783.85 million | 3.82 | $135.89 million | $4.33 | 18.28 |
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.
Insider and Institutional 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 insiders. Comparatively, 0.4% of MGE Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
Hawaiian Electric Industries has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, MGE Energy has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for Hawaiian Electric Industries and MGE Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hawaiian Electric Industries | 3 | 2 | 0 | 0 | 1.40 |
| MGE Energy | 1 | 3 | 2 | 0 | 2.17 |
Hawaiian Electric Industries currently has a consensus price target of $7.67, indicating a potential downside of 11.21%. MGE Energy has a consensus price target of $80.75, indicating a potential upside of 2.00%. Given MGE Energy’s stronger consensus rating and higher probable upside, analysts plainly believe MGE Energy is more favorable than Hawaiian Electric Industries.
Profitability
This table compares Hawaiian Electric Industries and MGE Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hawaiian Electric Industries | 6.58% | 7.02% | 1.37% |
| MGE Energy | 20.60% | 11.59% | 4.97% |
Summary
MGE Energy beats Hawaiian Electric Industries on 14 of the 17 factors compared between the two stocks.
About Hawaiian Electric Industries
Hawaiian Electric Industries, Inc. (HEI) is a Hawaii-based holding company whose businesses include electric utility operations and banking. Its electric utility subsidiary, Hawaiian Electric, generates and purchases power and delivers electricity to customers on Oahu, Maui, Molokai, Lanai and Hawaii Island. HEI also owns American Savings Bank, which provides consumer and commercial banking services in Hawaii. Through its businesses, the company serves communities across the state and supports efforts to advance cleaner energy and strengthen Hawaii’s energy system.
About MGE Energy
MGE Energy, Inc. is a public utility holding company based in Madison, Wisconsin. Its principal subsidiary, Madison Gas and Electric Company (MGE), provides electric and natural gas service to customers in Madison and surrounding communities in south-central Wisconsin. MGE’s operations include generating and purchasing electricity, delivering power through its electric system, and distributing natural gas. The company also invests in energy-related businesses, including projects that support renewable energy and other power-generation resources.
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