Head-To-Head Analysis: Hawaiian Electric Industries (HE) and NRG Yield, Inc. Class C (NYLD)

Hawaiian Electric Industries (NYSE: HE) and NRG Yield, Inc. Class C (NYSE:NYLD) are both mid-cap utilities companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Earnings & Valuation

This table compares Hawaiian Electric Industries and NRG Yield, Inc. Class C’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hawaiian Electric Industries $2.38 billion 1.46 $250.14 million $1.63 19.66
NRG Yield, Inc. Class C $1.02 billion 3.00 $67.00 million $0.42 39.45

Hawaiian Electric Industries has higher revenue and earnings than NRG Yield, Inc. Class C. Hawaiian Electric Industries is trading at a lower price-to-earnings ratio than NRG Yield, Inc. Class C, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hawaiian Electric Industries and NRG Yield, Inc. Class C’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%
NRG Yield, Inc. Class C 4.10% 1.76% 0.48%

Risk and Volatility

Hawaiian Electric Industries has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, NRG Yield, Inc. Class C has a beta of 2.32, suggesting that its share price is 132% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Hawaiian Electric Industries and NRG Yield, Inc. Class C, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawaiian Electric Industries 3 1 0 0 1.25
NRG Yield, Inc. Class C 0 5 3 0 2.38

Hawaiian Electric Industries currently has a consensus price target of $31.67, indicating a potential downside of 1.17%. NRG Yield, Inc. Class C has a consensus price target of $19.50, indicating a potential upside of 17.68%. Given NRG Yield, Inc. Class C’s stronger consensus rating and higher possible upside, analysts plainly believe NRG Yield, Inc. Class C is more favorable than Hawaiian Electric Industries.

Institutional and Insider Ownership

49.4% of Hawaiian Electric Industries shares are owned by institutional investors. Comparatively, 29.5% of NRG Yield, Inc. Class C shares are owned by institutional investors. 0.9% of Hawaiian Electric Industries shares are owned by company insiders. Comparatively, 0.2% of NRG Yield, Inc. Class C shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Hawaiian Electric Industries pays an annual dividend of $1.24 per share and has a dividend yield of 3.9%. NRG Yield, Inc. Class C pays an annual dividend of $1.15 per share and has a dividend yield of 6.9%. 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. NRG Yield, Inc. Class C pays out 273.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Hawaiian Electric Industries beats NRG Yield, Inc. Class C on 9 of the 16 factors compared between the two stocks.

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.

About NRG Yield, Inc. Class C

NRG Yield, Inc. serves as the primary vehicle, through which NRG Energy, Inc. owns, operates and acquires contracted renewable and conventional generation and thermal infrastructure assets. It owns a diversified portfolio of contracted renewable and conventional generation and thermal infrastructure assets in the United States. Its contracted generation portfolio includes three natural gas or dual-fired facilities, eight utility-scale solar and wind generation facilities and two portfolios of distributed solar facilities that collectively represent 1,324 net megawatt. The Company also own thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,098 net megawatt and electric generation capacity of 123 net megawatt. In July 2014, NRG Yield Inc completed its acquisition of three Right of First Offer (ROFO) assets from NRG Energy, Inc. In August 2014, it acquired Alta Wind facility located in Tehachapi, California from Terra-Gen Power LLC.

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