Talen Energy (NASDAQ:TLN – Get Free Report) and Hawaiian Electric Industries (NYSE:HE – Get Free Report) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Talen Energy and Hawaiian Electric Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talen Energy | 0 | 0 | 10 | 0 | 3.00 |
| Hawaiian Electric Industries | 0 | 3 | 0 | 0 | 2.00 |
Talen Energy currently has a consensus target price of $222.40, indicating a potential upside of 12.83%. Hawaiian Electric Industries has a consensus target price of $11.00, indicating a potential upside of 11.34%. Given Talen Energy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Talen Energy is more favorable than Hawaiian Electric Industries.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Talen Energy | $4.23 billion | 2.37 | $613.00 million | $18.68 | 10.55 |
| Hawaiian Electric Industries | $3.69 billion | 0.46 | $201.13 million | ($11.83) | -0.84 |
Talen Energy has higher revenue and earnings than Hawaiian Electric Industries. Hawaiian Electric Industries is trading at a lower price-to-earnings ratio than Talen Energy, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
0.4% of Talen Energy shares are held by institutional investors. Comparatively, 59.9% of Hawaiian Electric Industries shares are held by institutional investors. 0.2% of Talen Energy shares are held by company insiders. Comparatively, 0.3% of Hawaiian Electric Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Talen Energy and Hawaiian Electric Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Talen Energy | 50.48% | 8.59% | 3.13% |
| Hawaiian Electric Industries | -35.38% | 11.12% | 1.19% |
Summary
Talen Energy beats Hawaiian Electric Industries on 10 of the 13 factors compared between the two stocks.
About Talen Energy
Talen Energy Corporation is a U.S.-based energy and power generation company. The Company owns or controls approximately 16,000 megawatts of capacity in wholesale power markets, principally in the Northeast, Mid-Atlantic and Southwest regions of the United States. The Company generates and sells electricity, capacity and related products from power plants that use fuel sources, such as nuclear, natural gas and coal. The Company’s Susquehanna nuclear power plant has approximately two boiling water reactors with a combined capacity of over 2,600 megawatts. Its fossil fuel plants are located in Athens, Barney Davis, Bayonne, Brandon Shores, Brunner Island, Camden, Colstrip and Dartmouth, among others. It has an art energy trading center located in Allentown, Pennsylvania (PA), where it manages asset load obligations, fuel supply, capacity and related products, and all supporting physical or financial transactions for its electric generation portfolio.
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.
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