Xcel Energy (NASDAQ:XEL – Get Free Report) and Hawaiian Electric Industries (NYSE:HE – Get Free Report) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.
Volatility and Risk
Xcel Energy has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Hawaiian Electric Industries has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.
Insider and Institutional Ownership
78.4% of Xcel Energy shares are owned by institutional investors. Comparatively, 59.9% of Hawaiian Electric Industries shares are owned by institutional investors. 0.2% of Xcel Energy shares are owned by company insiders. Comparatively, 0.2% of Hawaiian Electric Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Xcel Energy | 0 | 1 | 14 | 2 | 3.06 |
| Hawaiian Electric Industries | 3 | 2 | 0 | 0 | 1.40 |
Xcel Energy presently has a consensus target price of $92.41, indicating a potential upside of 27.10%. Hawaiian Electric Industries has a consensus target price of $9.25, indicating a potential downside of 9.62%. Given Xcel Energy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Xcel Energy is more favorable than Hawaiian Electric Industries.
Earnings and Valuation
This table compares Xcel Energy and Hawaiian Electric Industries”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Xcel Energy | $14.67 billion | 3.10 | $2.02 billion | $3.65 | 19.92 |
| Hawaiian Electric Industries | $3.09 billion | 0.57 | $126.28 million | $1.30 | 7.87 |
Xcel Energy has higher revenue and earnings than Hawaiian Electric Industries. Hawaiian Electric Industries is trading at a lower price-to-earnings ratio than Xcel Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Xcel Energy and Hawaiian Electric Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Xcel Energy | 15.28% | 10.65% | 2.97% |
| Hawaiian Electric Industries | 6.89% | 7.90% | 1.48% |
Summary
Xcel Energy beats Hawaiian Electric Industries on 13 of the 15 factors compared between the two stocks.
About Xcel Energy
Xcel Energy Inc., through its subsidiaries, engages in the generation, purchasing, transmission, distribution, and sale of electricity. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity through wind, nuclear, hydroelectric, biomass, and solar energy sources, as well as coal, natural gas, oil, wood, and refuse-derived fuels. It also purchases, transports, distributes, and sells natural gas to retail customers, as well as transports customer-owned natural gas. In addition, the company develops and leases natural gas pipelines, and storage and compression facilities; and invests in rental housing projects and nonregulated assets, as well as procures equipment for the construction of renewable generation facilities. It serves residential, commercial, and industrial customers in the portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. The company was incorporated in 1909 and is headquartered in Minneapolis, Minnesota.
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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