RWE (OTCMKTS:RWEOY – Get Free Report) and Hawaiian Electric Industries (NYSE:HE – Get Free Report) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Profitability
This table compares RWE and Hawaiian Electric Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RWE | 21.25% | 5.34% | 2.10% |
| Hawaiian Electric Industries | 6.89% | 7.90% | 1.48% |
Earnings & Valuation
This table compares RWE and Hawaiian Electric Industries”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RWE | $19.94 billion | 2.52 | $3.54 billion | $5.26 | 13.16 |
| Hawaiian Electric Industries | $3.09 billion | 0.54 | $126.28 million | $1.30 | 7.41 |
RWE has higher revenue and earnings than Hawaiian Electric Industries. Hawaiian Electric Industries is trading at a lower price-to-earnings ratio than RWE, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
59.9% of Hawaiian Electric Industries shares are owned by institutional investors. 0.2% of Hawaiian Electric Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and price targets for RWE and Hawaiian Electric Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RWE | 0 | 5 | 3 | 0 | 2.38 |
| Hawaiian Electric Industries | 3 | 2 | 0 | 0 | 1.40 |
RWE presently has a consensus price target of $53.30, suggesting a potential downside of 23.01%. Hawaiian Electric Industries has a consensus price target of $9.25, suggesting a potential downside of 4.00%. Given Hawaiian Electric Industries’ higher possible upside, analysts clearly believe Hawaiian Electric Industries is more favorable than RWE.
Risk and Volatility
RWE has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Hawaiian Electric Industries has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.
Summary
RWE beats Hawaiian Electric Industries on 10 of the 14 factors compared between the two stocks.
About RWE
RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.
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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