Critical Review: Evergy (NASDAQ:EVRG) and Hawaiian Electric Industries (NYSE:HE)

Hawaiian Electric Industries (NYSE:HEGet Free Report) and Evergy (NASDAQ:EVRGGet Free Report) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Earnings & Valuation

This table compares Hawaiian Electric Industries and Evergy”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 0.62 $126.28 million $1.30 8.52
Evergy $5.96 billion 3.15 $855.60 million $3.94 20.70

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

Analyst Recommendations

This is a breakdown of recent ratings for Hawaiian Electric Industries and Evergy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawaiian Electric Industries 2 2 0 0 1.50
Evergy 0 3 8 0 2.73

Hawaiian Electric Industries currently has a consensus target price of $11.88, indicating a potential upside of 7.18%. Evergy has a consensus target price of $90.60, indicating a potential upside of 11.11%. Given Evergy’s stronger consensus rating and higher probable upside, analysts plainly believe Evergy is more favorable than Hawaiian Electric Industries.

Volatility and Risk

Hawaiian Electric Industries has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Evergy has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Profitability

This table compares Hawaiian Electric Industries and Evergy’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%
Evergy 15.19% 9.20% 2.76%

Insider and Institutional Ownership

59.9% of Hawaiian Electric Industries shares are owned by institutional investors. Comparatively, 87.2% of Evergy shares are owned by institutional investors. 0.2% of Hawaiian Electric Industries shares are owned by insiders. Comparatively, 1.5% of Evergy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Evergy beats Hawaiian Electric Industries on 14 of the 14 factors compared between the two stocks.

About Hawaiian Electric Industries

(Get Free Report)

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 Evergy

(Get Free Report)

Evergy, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in the United States. The company generates electricity through coal, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources. It serves residences, commercial firms, industrials, municipalities, and other electric utilities. The company was incorporated in 2017 and is headquartered in Kansas City, Missouri.

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