Hawaiian Electric Industries, Inc. (HE) vs MGE Energy Inc. (MGEE)

Hawaiian Electric Industries, Inc. and MGE Energy Inc. are both Utilities Regulated Electric companies. MGE Energy Inc. is the larger, with a market value of $2.6B against $1.6B — 1.6× the size. Hawaiian Electric Industries, Inc. trades at the lower P/E: 7.0× against 17.2×. MGE Energy Inc. grew revenue faster over the last twelve months: 7.07% against 5.11%. MGE Energy Inc. has the higher net margin (19.5% vs 6.82%) and the lower return on invested capital (4.49% vs 5.49%). Both pay a dividend; Hawaiian Electric Industries, Inc. yields more (11.0% vs 2.59%). Across the 22 metrics below, Hawaiian Electric Industries, Inc. leads on 11 and MGE Energy Inc. on 11.

Valuation

Metric HE MGEE Utilities Regulated Electric median
P/E 7.00 17.21 18.84
P/S 0.48 3.40 2.52
P/B 0.89 1.82 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 6.27 12.42 11.82
EV/Sales 1.29 4.60 4.58
Earnings yield 14.29% 5.81% 5.30%
Free cash flow yield (36.00%) (6.28%) (5.06%)

Profitability

Metric HE MGEE Utilities Regulated Electric median
Gross margin 13.15% 72.64% 66.28%
Operating margin 11.48% 22.02% 21.79%
Net margin 6.82% 19.45% 12.94%
Free cash flow margin (17.23%) (21.36%) (11.51%)
Return on equity 13.59% 11.04% 9.75%
Return on assets 2.68% 4.86% 2.75%
Return on invested capital 5.49% 4.49% 3.87%

Growth

Metric HE MGEE Utilities Regulated Electric median
Revenue growth (TTM) 5.11% 7.07% 7.43%
EPS growth (last fiscal year) 106.32% 11.71% —
Revenue growth, 5-year CAGR 3.65% 6.66% 6.75%
Net income growth, 5-year CAGR (9.05%) 8.02% 6.44%

Health

Metric HE MGEE Utilities Regulated Electric median
Debt to equity 1.57 0.65 1.53
Current ratio 0.99 1.14 0.81
Net debt to EBITDA 3.62 3.17 5.25

Dividend

Metric HE MGEE Utilities Regulated Electric median
Dividend yield 11.02% 2.59% 4.33%
Payout ratio 0.68 0.51 0.66

Size

Metric HE MGEE Utilities Regulated Electric median
Market cap 1.58b 2.59b 22.90b

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