Hawaiian Electric Industries (NYSE: HE) and Alliant Energy Corporation (NYSE:LNT) are both mid-cap utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Institutional & Insider Ownership
48.2% of Hawaiian Electric Industries shares are owned by institutional investors. Comparatively, 66.6% of Alliant Energy Corporation shares are owned by institutional investors. 0.9% of Hawaiian Electric Industries shares are owned by company insiders. Comparatively, 0.3% of Alliant Energy Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Hawaiian Electric Industries has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Alliant Energy Corporation has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Hawaiian Electric Industries and Alliant Energy Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hawaiian Electric Industries||3||1||0||0||1.25|
|Alliant Energy Corporation||0||4||0||0||2.00|
Hawaiian Electric Industries presently has a consensus price target of $32.33, suggesting a potential downside of 11.32%. Alliant Energy Corporation has a consensus price target of $42.00, suggesting a potential downside of 4.18%. Given Alliant Energy Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Alliant Energy Corporation is more favorable than Hawaiian Electric Industries.
Hawaiian Electric Industries pays an annual dividend of $1.24 per share and has a dividend yield of 3.4%. Alliant Energy Corporation pays an annual dividend of $1.26 per share and has a dividend yield of 2.9%. Hawaiian Electric Industries pays out 76.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alliant Energy Corporation pays out 67.7% of its earnings in the form of a dividend. Hawaiian Electric Industries has raised its dividend for 11 consecutive years. Hawaiian Electric Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Hawaiian Electric Industries and Alliant Energy Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Hawaiian Electric Industries||$2.38 billion||1.67||$250.14 million||$1.63||22.37|
|Alliant Energy Corporation||$3.32 billion||3.05||$381.70 million||$1.86||23.56|
Alliant Energy Corporation has higher revenue and earnings than Hawaiian Electric Industries. Hawaiian Electric Industries is trading at a lower price-to-earnings ratio than Alliant Energy Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Hawaiian Electric Industries and Alliant Energy Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hawaiian Electric Industries||7.14%||8.67%||1.43%|
|Alliant Energy Corporation||13.13%||11.18%||3.25%|
Alliant Energy Corporation beats Hawaiian Electric Industries on 12 of the 16 factors compared between the two stocks.
Hawaiian Electric Industries Company Profile
Hawaiian Electric Industries, Inc. is a holding company with its principal subsidiaries engaged in electric utility and banking businesses operating primarily in the State of Hawaii. The Company’s subsidiaries include Hawaiian Electric Company, Inc. (Hawaiian Electric) and ASB Hawaii, Inc. (ASB Hawaii). Its segments include Electric utility, Bank and Other. It operates its electric utility business through Hawaiian Electric and its subsidiaries, Hawaii Electric Light Company, Inc. (Hawaii Electric Light) and Maui Electric Company, Limited (Maui Electric). It operates its Bank segment through ASB Hawaii’s subsidiary, American Savings Bank, F.S.B. (ASB). Its electric public utilities are in the business of generating, purchasing, transmitting, distributing and selling electric energy. ASB is a federally chartered savings bank providing a range of banking services to individual and business customers.
Alliant Energy Corporation Company Profile
Alliant Energy Corporation operates as a regulated investor-owned public utility holding company. The Company’s segments include Utility and Non-regulated, Parent and Other. The Utility segment includes the operations of Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL), which serve retail customers in Iowa and Wisconsin. The Utility segment includes utility electric operations, utility gas operations and utility other, which includes steam operations and the unallocated portions of the utility business. Its Non-regulated, Parent and Other segment includes the operations of Alliant Energy Resources, LLC and its subsidiaries; Alliant Energy Corporate Services, Inc. (Corporate Services); the Alliant Energy parent company, and any Alliant Energy parent company consolidating adjustments. IPL and WPL own a portfolio of electric generating units located in Iowa, Wisconsin and Minnesota with a fuel mix, including coal, natural gas and renewable resources.
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