Critical Analysis: Hawaiian Electric Industries (HE) versus DTE Energy (DTE)

Share on StockTwits

Hawaiian Electric Industries (NYSE:HE) and DTE Energy (NYSE:DTE) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

51.5% of Hawaiian Electric Industries shares are owned by institutional investors. Comparatively, 73.0% of DTE Energy shares are owned by institutional investors. 0.9% of Hawaiian Electric Industries shares are owned by insiders. Comparatively, 0.6% of DTE Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Hawaiian Electric Industries has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, DTE Energy has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.

Earnings and Valuation

This table compares Hawaiian Electric Industries and DTE Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hawaiian Electric Industries $2.56 billion 1.53 $167.18 million $1.65 21.82
DTE Energy $12.61 billion 1.61 $1.13 billion $5.59 19.98

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

Profitability

This table compares Hawaiian Electric Industries and DTE Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hawaiian Electric Industries 6.76% 9.52% 1.55%
DTE Energy 8.85% 11.61% 3.50%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Hawaiian Electric Industries and DTE Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawaiian Electric Industries 2 2 0 0 1.50
DTE Energy 1 6 4 0 2.27

Hawaiian Electric Industries currently has a consensus price target of $33.00, suggesting a potential downside of 8.33%. DTE Energy has a consensus price target of $114.00, suggesting a potential upside of 2.06%. Given DTE Energy’s stronger consensus rating and higher possible upside, analysts plainly believe DTE Energy is more favorable than Hawaiian Electric Industries.

Dividends

Hawaiian Electric Industries pays an annual dividend of $1.24 per share and has a dividend yield of 3.4%. DTE Energy pays an annual dividend of $3.78 per share and has a dividend yield of 3.4%. Hawaiian Electric Industries pays out 75.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DTE Energy pays out 67.6% of its earnings in the form of a dividend. DTE Energy has increased its dividend for 7 consecutive years.

Summary

DTE Energy beats Hawaiian Electric Industries on 13 of the 17 factors compared between the two stocks.

About Hawaiian Electric Industries

Hawaiian Electric Industries, Inc., through its subsidiaries, engages in the electric utility and banking businesses primarily in the state of Hawaii. The company's Electric Utility segment is involved in generating, purchasing, transmitting, distributing, and selling electric energy. Its renewable energy sources and potential sources include wind, solar, photovoltaic, geothermal, wave, hydroelectric, sugarcane waste, municipal waste, and other bio fuels. This segment distributes and sells electricity on the islands of Oahu, Hawaii, Maui, Lanai, and Molokai; and serves suburban communities, resorts, the United States armed forces installations, and agricultural operations. Its Bank segment operates a savings bank that offers banking and other financial services, including deposit products, such as savings accounts, checking accounts, money market accounts, and certificates of deposit; and loans comprising residential and commercial real estate, residential mortgage, construction and development, multifamily residential and commercial real estate, consumer, and commercial loans to consumers and business. Hawaiian Electric Industries Inc. was founded in 1891 and is headquartered in Honolulu, Hawaii.

About DTE Energy

DTE Energy Company engages in the utility operations. The company's Electric segment generates, purchases, distributes, and sells electricity to approximately 2.2 million residential, commercial, and industrial customers in southeastern Michigan. It generates electricity through fossil-fuel, hydroelectric pumped storage, and nuclear plants, as well as wind and other renewable assets. This segment owns and operates approximately 692 distribution substations and 440,500 line transformers. Its Gas segment purchases, stores, transports, distributes, and sells natural gas to approximately 1.3 million residential, commercial, and industrial customers in Michigan, as well as the sells storage and transportation capacity. This segment has approximately 19,500 miles of distribution mains; 1,216,000 service pipelines; and 1,262,000 active meters, as well as owns approximately 2,000 miles of transmission pipelines. The company's Gas Storage and Pipelines segment owns natural gas storage fields, lateral and gathering pipeline systems, and compression and surface facilities, as well as has ownership interests in interstate pipelines serving the Midwest, Ontario, and northeast markets. Its Power and Industrial Projects segment provides metallurgical coke; pulverized coal and petroleum coke to the steel, pulp and paper, and other industries; and power, steam and chilled water production, and wastewater treatment services, as well as supplies compressed air to industrial customers. It also owns and operates 5 renewable generating plants with a capacity of 217 MWs; 21 landfill gas recovery sites; and 11 reduced emissions fuel facilities. The company's Energy Trading segment is involved in power and gas marketing and trading; structured transactions; and the optimization of contracted natural gas pipeline transportation and storage positions. DTE Energy Company was founded in 1903 and is headquartered in Detroit, Michigan.

Receive News & Ratings for Hawaiian Electric Industries Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hawaiian Electric Industries and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply