Hawaiian Electric Industries (NYSE:HE) versus RWE (OTCMKTS:RWEOY) Financial Survey

Hawaiian Electric Industries (NYSE:HE) and RWE (OTCMKTS:RWEOY) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and target prices for Hawaiian Electric Industries and RWE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hawaiian Electric Industries	3	2	0	0	1.40
RWE	0	5	3	0	2.38

Hawaiian Electric Industries presently has a consensus target price of $9.25, suggesting a potential downside of 4.00%. RWE has a consensus target price of $53.30, suggesting a potential downside of 23.01%. Given Hawaiian Electric Industries’ higher possible upside, analysts clearly believe Hawaiian Electric Industries is more favorable than RWE.

Risk and Volatility

Hawaiian Electric Industries has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, RWE has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Institutional & Insider Ownership

59.9% of Hawaiian Electric Industries shares are held by institutional investors. 0.2% of Hawaiian Electric Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hawaiian Electric Industries	6.89%	7.90%	1.48%
RWE	21.25%	5.34%	2.10%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hawaiian Electric Industries	$3.09 billion	0.54	$126.28 million	$1.30	7.41
RWE	$19.94 billion	2.52	$3.54 billion	$5.26	13.16

RWE has higher revenue and earnings than Hawaiian Electric Industries. Hawaiian Electric Industries is trading at a lower price-to-earnings ratio than RWE, indicating that it is currently the more affordable of the two stocks.

Summary

RWE beats Hawaiian Electric Industries on 10 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 RWE

RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.