MGE Energy (NASDAQ:MGEE – Get Free Report) and Hawaiian Electric Industries (NYSE:HE – 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 valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
Volatility & Risk
MGE Energy has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Hawaiian Electric Industries has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.
Earnings & Valuation
This table compares MGE Energy and Hawaiian Electric Industries”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MGE Energy | $743.65 million | 4.01 | $135.89 million | $4.33 | 18.19 |
| Hawaiian Electric Industries | $3.09 billion | 0.48 | $126.28 million | $1.32 | 6.52 |
MGE Energy has higher earnings, but lower revenue 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.
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 | 20.60% | 11.59% | 4.97% |
| Hawaiian Electric Industries | 6.58% | 7.02% | 1.37% |
Analyst Ratings
This is a breakdown of recent 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 | 3 | 2 | 0 | 2.17 |
| Hawaiian Electric Industries | 3 | 2 | 0 | 0 | 1.40 |
MGE Energy presently has a consensus price target of $80.75, suggesting a potential upside of 2.53%. Hawaiian Electric Industries has a consensus price target of $7.67, suggesting a potential downside of 10.94%. Given MGE Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe MGE Energy is more favorable than Hawaiian Electric Industries.
Institutional and Insider Ownership
52.6% of MGE Energy shares are owned by institutional investors. Comparatively, 59.9% of Hawaiian Electric Industries shares are owned by institutional investors. 0.4% of MGE Energy shares are owned by insiders. Comparatively, 0.2% of Hawaiian Electric Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
MGE Energy beats Hawaiian Electric Industries on 12 of the 14 factors compared between the two stocks.
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.
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.
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