MGE Energy (NASDAQ:MGEE – Get Free Report) and Hawaiian Electric Industries (NYSE:HE – Get Free Report) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.
Valuation and Earnings
This table compares MGE Energy and Hawaiian Electric Industries”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MGE Energy | $743.65 million | 3.59 | $135.89 million | $4.07 | 17.38 |
| Hawaiian Electric Industries | $3.09 billion | 0.49 | $126.28 million | $1.30 | 6.76 |
Volatility & Risk
MGE Energy has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Hawaiian Electric Industries has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.
Insider & Institutional Ownership
52.6% of MGE Energy shares are held by institutional investors. Comparatively, 59.9% of Hawaiian Electric Industries shares are held by institutional investors. 0.4% of MGE Energy shares are held by insiders. Comparatively, 0.2% of Hawaiian Electric Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares MGE Energy and Hawaiian Electric Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MGE Energy | 19.45% | 11.10% | 4.74% |
| Hawaiian Electric Industries | 6.89% | 7.90% | 1.48% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for MGE Energy and Hawaiian Electric Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MGE Energy | 1 | 2 | 1 | 0 | 2.00 |
| Hawaiian Electric Industries | 4 | 1 | 0 | 0 | 1.20 |
MGE Energy currently has a consensus price target of $76.00, suggesting a potential upside of 7.45%. Hawaiian Electric Industries has a consensus price target of $7.67, suggesting a potential downside of 12.80%. Given MGE Energy’s stronger consensus rating and higher possible upside, equities analysts plainly 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 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.
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.
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