Contrasting Alliant Energy Corporation (LNT) and Hawaiian Electric Industries (HE)
Alliant Energy Corporation (NYSE: LNT) and Hawaiian Electric Industries (NYSE:HE) are both mid-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.
Volatility & Risk
Alliant Energy Corporation has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Hawaiian Electric Industries has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.
Earnings and Valuation
This table compares Alliant Energy Corporation and Hawaiian Electric Industries’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Alliant Energy Corporation||$3.34 billion||2.99||$1.07 billion||$1.70||25.40|
|Hawaiian Electric Industries||$2.49 billion||1.58||$544.05 million||$2.25||16.08|
Alliant Energy Corporation has higher revenue and earnings than Hawaiian Electric Industries. Hawaiian Electric Industries is trading at a lower price-to-earnings ratio than Alliant Energy Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Alliant Energy Corporation and Hawaiian Electric Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alliant Energy Corporation||11.85%||11.43%||3.34%|
|Hawaiian Electric Industries||9.91%||8.83%||1.47%|
Insider and Institutional Ownership
66.6% of Alliant Energy Corporation shares are held by institutional investors. Comparatively, 48.2% of Hawaiian Electric Industries shares are held by institutional investors. 0.3% of Alliant Energy Corporation shares are held by company insiders. Comparatively, 0.9% of Hawaiian Electric Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Alliant Energy Corporation pays an annual dividend of $1.26 per share and has a dividend yield of 2.9%. Hawaiian Electric Industries pays an annual dividend of $1.24 per share and has a dividend yield of 3.4%. Alliant Energy Corporation pays out 74.1% of its earnings in the form of a dividend. Hawaiian Electric Industries pays out 55.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Alliant Energy Corporation has raised its dividend for 11 consecutive years. Hawaiian Electric Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of current ratings and target prices for Alliant Energy Corporation and Hawaiian Electric Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alliant Energy Corporation||0||5||0||0||2.00|
|Hawaiian Electric Industries||3||1||0||0||1.25|
Alliant Energy Corporation presently has a consensus price target of $42.00, indicating a potential downside of 2.73%. Hawaiian Electric Industries has a consensus price target of $32.33, indicating a potential downside of 10.63%. Given Alliant Energy Corporation’s stronger consensus rating and higher probable upside, equities analysts clearly believe Alliant Energy Corporation is more favorable than Hawaiian Electric Industries.
Alliant Energy Corporation beats Hawaiian Electric Industries on 11 of the 16 factors compared between the two stocks.
About Alliant Energy Corporation
Alliant Energy Corporation operates as a regulated investor-owned public utility holding company. The Company’s segments include Utility and Non-regulated, Parent and Other. The Utility segment includes the operations of Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL), which serve retail customers in Iowa and Wisconsin. The Utility segment includes utility electric operations, utility gas operations and utility other, which includes steam operations and the unallocated portions of the utility business. Its Non-regulated, Parent and Other segment includes the operations of Alliant Energy Resources, LLC and its subsidiaries; Alliant Energy Corporate Services, Inc. (Corporate Services); the Alliant Energy parent company, and any Alliant Energy parent company consolidating adjustments. IPL and WPL own a portfolio of electric generating units located in Iowa, Wisconsin and Minnesota with a fuel mix, including coal, natural gas and renewable resources.
About Hawaiian Electric Industries
Hawaiian Electric Industries, Inc. is a holding company with its principal subsidiaries engaged in electric utility and banking businesses operating primarily in the State of Hawaii. The Company’s subsidiaries include Hawaiian Electric Company, Inc. (Hawaiian Electric) and ASB Hawaii, Inc. (ASB Hawaii). Its segments include Electric utility, Bank and Other. It operates its electric utility business through Hawaiian Electric and its subsidiaries, Hawaii Electric Light Company, Inc. (Hawaii Electric Light) and Maui Electric Company, Limited (Maui Electric). It operates its Bank segment through ASB Hawaii’s subsidiary, American Savings Bank, F.S.B. (ASB). Its electric public utilities are in the business of generating, purchasing, transmitting, distributing and selling electric energy. ASB is a federally chartered savings bank providing a range of banking services to individual and business customers.
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