Azure Power Global (NYSE:AZRE) vs. Hawaiian Electric Industries (NYSE:HE) Head to Head Analysis

Azure Power Global (NYSE:AZRE) and Hawaiian Electric Industries (NYSE:HE) are both mid-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Azure Power Global and Hawaiian Electric Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Azure Power Global 0 1 4 0 2.80
Hawaiian Electric Industries 3 1 0 0 1.25

Azure Power Global presently has a consensus target price of $35.00, suggesting a potential downside of 29.68%. Hawaiian Electric Industries has a consensus target price of $48.00, suggesting a potential upside of 41.30%. Given Hawaiian Electric Industries’ higher possible upside, analysts clearly believe Hawaiian Electric Industries is more favorable than Azure Power Global.

Profitability

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

Net Margins Return on Equity Return on Assets
Azure Power Global -14.74% -4.80% -1.01%
Hawaiian Electric Industries 8.10% 9.06% 1.47%

Volatility and Risk

Azure Power Global has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Hawaiian Electric Industries has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500.

Earnings and Valuation

This table compares Azure Power Global and Hawaiian Electric Industries’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Azure Power Global $171.90 million 13.91 -$30.00 million ($0.47) -105.89
Hawaiian Electric Industries $2.87 billion 1.29 $219.77 million $1.99 17.07

Hawaiian Electric Industries has higher revenue and earnings than Azure Power Global. Azure Power Global 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.

Institutional and Insider Ownership

64.9% of Azure Power Global shares are owned by institutional investors. Comparatively, 49.6% of Hawaiian Electric Industries shares are owned by institutional investors. 2.4% of Hawaiian Electric Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Hawaiian Electric Industries beats Azure Power Global on 9 of the 14 factors compared between the two stocks.

About Azure Power Global

Azure Power Global Limited, together with its subsidiaries, engages in the development, construction, ownership, operation, maintenance, and management of solar power plants in India. It generates solar energy based on long-term contracts with Indian government energy distribution companies, as well as other non-governmental energy distribution companies and commercial customers. As of March 31, 2020, the company operated 43 utility scale projects and various commercial rooftop projects with a combined rated capacity of 1,808 MW. Azure Power Global Limited was founded in 2008 and is based in New Delhi, India.

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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