Financial Analysis: ENGIE (OTCMKTS:ENGIY) versus Hawaiian Electric Industries (NYSE:HE)

ENGIE (OTCMKTS:ENGIY) and Hawaiian Electric Industries (NYSE:HE) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Volatility & Risk

ENGIE has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Hawaiian Electric Industries has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Insider and Institutional Ownership

59.9% of Hawaiian Electric Industries shares are held by institutional investors. 0.2% of Hawaiian Electric Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares ENGIE and Hawaiian Electric Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENGIE	$79.88 billion	0.78	$4.44 billion	N/A	N/A
Hawaiian Electric Industries	$3.22 billion	0.62	-$1.42 billion	$0.08	145.35

ENGIE has higher revenue and earnings than Hawaiian Electric Industries.

Analyst Ratings

This is a summary of recent recommendations and price targets for ENGIE and Hawaiian Electric Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENGIE	0	1	5	0	2.83
Hawaiian Electric Industries	1	3	1	0	2.00

Hawaiian Electric Industries has a consensus target price of $12.13, suggesting a potential upside of 4.27%. Given Hawaiian Electric Industries’ higher possible upside, analysts plainly believe Hawaiian Electric Industries is more favorable than ENGIE.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ENGIE	N/A	N/A	N/A
Hawaiian Electric Industries	0.56%	9.51%	1.66%

Summary

Hawaiian Electric Industries beats ENGIE on 7 of the 12 factors compared between the two stocks.

About ENGIE

ENGIE SA engages in the power, natural gas, and energy services businesses. It operates through Renewables, Networks, Energy Solutions, FlexGen, Retail, Nuclear, and Others segments. The Renewables segment comprises renewable energy generation activities, including financing, construction, operation, and maintenance of renewable energy facilities using various energy sources, such as hydroelectric, onshore wind, photovoltaic solar, offshore wind, and geothermal. The Networks segment comprises the electricity and gas infrastructure activities and projects, including the management and development of gas and electricity transportation networks and natural gas distribution networks in and outside of Europe, natural gas underground storage in Europe, and regasification infrastructure in France and Chile. The Energy Solutions encompasses the construction and management of decentralized energy networks to produce energy and related services. The FlexGen segment operates flexible thermal generation and electricity, pumping, and battery storage facilities; solutions for decarbonizing industry with low-carbon hydrogen; and financing, construction, and operation of desalination plants. The Retail segment engages in the sale of gas and electricity to professional, individual, and residential clients. The Nuclear segment engages in the nuclear power generation activities. The others segment sells energy to companies and offers energy management services and solutions. The company was formerly known as GDF SUEZ S.A. and changed its name to ENGIE SA in April 2015. The company was founded in 1880 and is headquartered in Courbevoie, France.

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.