Hawaiian Electric Industries (NYSE:HE – Get Free Report) and Talen Energy (NASDAQ:TLN – Get Free Report) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.
Valuation and Earnings
This table compares Hawaiian Electric Industries and Talen Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hawaiian Electric Industries | $3.69 billion | 0.48 | $201.13 million | ($11.83) | -0.86 |
| Talen Energy | $2.55 billion | 4.10 | $613.00 million | $18.68 | 11.02 |
Talen Energy has lower revenue, but higher earnings than Hawaiian Electric Industries. Hawaiian Electric Industries is trading at a lower price-to-earnings ratio than Talen Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Hawaiian Electric Industries | -35.38% | 11.12% | 1.19% |
| Talen Energy | 50.48% | 8.59% | 3.13% |
Analyst Ratings
This is a breakdown of current recommendations for Hawaiian Electric Industries and Talen Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hawaiian Electric Industries | 0 | 3 | 0 | 0 | 2.00 |
| Talen Energy | 0 | 0 | 10 | 0 | 3.00 |
Hawaiian Electric Industries currently has a consensus target price of $11.00, indicating a potential upside of 8.06%. Talen Energy has a consensus target price of $222.40, indicating a potential upside of 8.04%. Given Hawaiian Electric Industries’ higher probable upside, analysts clearly believe Hawaiian Electric Industries is more favorable than Talen Energy.
Institutional & Insider Ownership
59.9% of Hawaiian Electric Industries shares are held by institutional investors. Comparatively, 0.4% of Talen Energy shares are held by institutional investors. 0.3% of Hawaiian Electric Industries shares are held by company insiders. Comparatively, 0.2% of Talen Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Talen Energy beats Hawaiian Electric Industries on 8 of the 13 factors compared between the two stocks.
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.
About Talen Energy
Talen Energy Corporation is a U.S.-based energy and power generation company. The Company owns or controls approximately 16,000 megawatts of capacity in wholesale power markets, principally in the Northeast, Mid-Atlantic and Southwest regions of the United States. The Company generates and sells electricity, capacity and related products from power plants that use fuel sources, such as nuclear, natural gas and coal. The Company’s Susquehanna nuclear power plant has approximately two boiling water reactors with a combined capacity of over 2,600 megawatts. Its fossil fuel plants are located in Athens, Barney Davis, Bayonne, Brandon Shores, Brunner Island, Camden, Colstrip and Dartmouth, among others. It has an art energy trading center located in Allentown, Pennsylvania (PA), where it manages asset load obligations, fuel supply, capacity and related products, and all supporting physical or financial transactions for its electric generation portfolio.
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