Head-To-Head Comparison: Brookfield Renewable Partners (BEP) and Hawaiian Electric Industries (HE)

Brookfield Renewable Partners (NYSE:BEP) 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 earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Dividends

Brookfield Renewable Partners pays an annual dividend of $2.06 per share and has a dividend yield of 6.5%. Hawaiian Electric Industries pays an annual dividend of $1.28 per share and has a dividend yield of 3.0%. Brookfield Renewable Partners pays out 1,584.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hawaiian Electric Industries pays out 69.2% of its earnings in the form of a dividend. Brookfield Renewable Partners has raised its dividend for 5 consecutive years. Brookfield Renewable Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Brookfield Renewable Partners 7.20% 1.47% 0.67%
Hawaiian Electric Industries 7.27% 9.75% 1.60%

Insider & Institutional Ownership

54.6% of Brookfield Renewable Partners shares are held by institutional investors. Comparatively, 52.6% of Hawaiian Electric Industries 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Brookfield Renewable Partners has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Hawaiian Electric Industries has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Brookfield Renewable Partners and Hawaiian Electric Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Renewable Partners 1 3 1 0 2.00
Hawaiian Electric Industries 1 1 0 0 1.50

Brookfield Renewable Partners currently has a consensus price target of $34.58, suggesting a potential upside of 9.89%. Hawaiian Electric Industries has a consensus price target of $35.50, suggesting a potential downside of 15.64%. Given Brookfield Renewable Partners’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Brookfield Renewable Partners is more favorable than Hawaiian Electric Industries.

Earnings and Valuation

This table compares Brookfield Renewable Partners and Hawaiian Electric Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookfield Renewable Partners $2.98 billion 1.89 $62.00 million $0.13 242.08
Hawaiian Electric Industries $2.86 billion 1.60 $203.66 million $1.85 22.75

Hawaiian Electric Industries has lower revenue, but higher earnings than Brookfield Renewable Partners. Hawaiian Electric Industries is trading at a lower price-to-earnings ratio than Brookfield Renewable Partners, indicating that it is currently the more affordable of the two stocks.

Summary

Brookfield Renewable Partners beats Hawaiian Electric Industries on 10 of the 17 factors compared between the two stocks.

About Brookfield Renewable Partners

Brookfield Renewable Partners L.P. owns a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India, and China. The company generates electricity through hydro, wind, solar, cogeneration, and biomass sources. Its portfolio consists of approximately 17,400 megawatts of installed capacity. Brookfield Renewable Partners Limited operates as the general partner of Brookfield Renewable Partners L.P. The company was formerly known as Brookfield Renewable Energy Partners L.P. and changed its name to Brookfield Renewable Partners L.P. in May 2016. Brookfield Renewable Partners L.P. was founded in 1999 and is headquartered in Hamilton, Bermuda.

About Hawaiian Electric Industries

Hawaiian Electric Industries, Inc., through its subsidiaries, engages in the electric utility and banking businesses primarily in the state of Hawaii. The company's Electric Utility segment is involved in generating, purchasing, transmitting, distributing, and selling electric energy. Its renewable energy sources and potential sources include wind, solar, photovoltaic, geothermal, wave, hydroelectric, municipal waste, and other bio fuels. This segment distributes and sells electricity on the islands of Oahu, Hawaii, Maui, Lanai, and Molokai; and serves suburban communities, resorts, the United States armed forces installations, and agricultural operations. Its Bank segment operates a savings bank that offers banking and other financial services, including deposit products, such as savings accounts 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 to consumers and business. This segment operates 49 branches, including 34 branches in Oahu, 6 branches in Maui, 5 branches in Hawaii, 3 branches in Kauai, and 1 branch in Molokai. The company's Other segment focuses on investing in non-regulated renewable energy and infrastructure in the State of Hawaii. Hawaiian Electric Industries Inc. was founded in 1891 and is headquartered in Honolulu, Hawaii.

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