Head to Head Comparison: Hawaiian Electric Industries (HE) and Companhia Paranaense de Energia (ELP)

Hawaiian Electric Industries (NYSE: HE) and Companhia Paranaense de Energia (NYSE:ELP) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Risk & Volatility

Hawaiian Electric Industries has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Companhia Paranaense de Energia has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Profitability

This table compares Hawaiian Electric Industries and Companhia Paranaense de Energia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hawaiian Electric Industries 7.14% 8.64% 1.42%
Companhia Paranaense de Energia 6.46% 5.70% 2.78%

Dividends

Hawaiian Electric Industries pays an annual dividend of $1.24 per share and has a dividend yield of 3.4%. Companhia Paranaense de Energia pays an annual dividend of $0.53 per share and has a dividend yield of 7.5%. Hawaiian Electric Industries pays out 76.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Companhia Paranaense de Energia pays out 55.8% of its earnings in the form of a dividend. Companhia Paranaense de Energia is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings and target prices for Hawaiian Electric Industries and Companhia Paranaense de Energia, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawaiian Electric Industries 3 1 0 0 1.25
Companhia Paranaense de Energia 0 0 1 0 3.00

Hawaiian Electric Industries currently has a consensus price target of $32.33, suggesting a potential downside of 12.45%. Given Hawaiian Electric Industries’ higher possible upside, equities research analysts clearly believe Hawaiian Electric Industries is more favorable than Companhia Paranaense de Energia.

Insider and Institutional Ownership

49.3% of Hawaiian Electric Industries shares are held by institutional investors. Comparatively, 2.0% of Companhia Paranaense de Energia shares are held by institutional investors. 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 company will outperform the market over the long term.

Valuation and Earnings

This table compares Hawaiian Electric Industries and Companhia Paranaense de Energia’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hawaiian Electric Industries $2.38 billion 1.69 $250.14 million $1.63 22.66
Companhia Paranaense de Energia $3.78 billion 0.51 $274.84 million $0.95 7.39

Companhia Paranaense de Energia has higher revenue and earnings than Hawaiian Electric Industries. Companhia Paranaense de Energia is trading at a lower price-to-earnings ratio than Hawaiian Electric Industries, indicating that it is currently the more affordable of the two stocks.

Hawaiian Electric Industries Company Profile

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.

Companhia Paranaense de Energia Company Profile

Companhia Paranaense de Energia is engaged in the generation, transmission, distribution and sale of electricity in the Brazilian State of Parana. The Company also provides telecommunications and other services. Its segments are Power generation and transmission (GET), Power distribution and sales (DIS), Telecommunications (TEL), GAS and Holding Company (HOL). The GET segment includes the generation of electric energy from hydraulic, wind and thermal projects; the transport and transformation of the power generated by the Company, and the construction, operation and maintenance of all power transmission substations and lines. The DIS segment includes the distribution and sale of electric energy, and the operation and maintenance of the distribution infrastructure. The TEL segment includes telecommunications and general communications services. The GAS segment includes the public service of piped natural gas distribution. The HOL segment includes participation in other companies.

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