Hawaiian Electric Industries (NYSE:HE – Get Free Report) and TXNM Energy (NYSE:TXNM – Get Free Report) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.
Analyst Ratings
This is a summary of recent ratings for Hawaiian Electric Industries and TXNM Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hawaiian Electric Industries | 0 | 4 | 0 | 0 | 2.00 |
| TXNM Energy | 0 | 2 | 3 | 0 | 2.60 |
Hawaiian Electric Industries presently has a consensus price target of $10.50, indicating a potential upside of 10.94%. TXNM Energy has a consensus price target of $52.00, indicating a potential upside of 4.80%. Given Hawaiian Electric Industries’ higher probable upside, research analysts clearly believe Hawaiian Electric Industries is more favorable than TXNM Energy.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hawaiian Electric Industries | $3.68 billion | 0.44 | $201.13 million | ($11.83) | -0.80 |
| TXNM Energy | $1.94 billion | 2.31 | $88.35 million | $1.92 | 25.84 |
Hawaiian Electric Industries has higher revenue and earnings than TXNM Energy. Hawaiian Electric Industries is trading at a lower price-to-earnings ratio than TXNM Energy, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Hawaiian Electric Industries has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.
Profitability
This table compares Hawaiian Electric Industries and TXNM Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hawaiian Electric Industries | -35.38% | 11.12% | 1.19% |
| TXNM Energy | 9.26% | 9.69% | 2.26% |
Insider & Institutional Ownership
59.9% of Hawaiian Electric Industries shares are held by institutional investors. Comparatively, 91.7% of TXNM Energy shares are held by institutional investors. 0.3% of Hawaiian Electric Industries shares are held by insiders. Comparatively, 1.4% of TXNM Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
TXNM Energy beats Hawaiian Electric Industries on 8 of the 13 factors compared between the two stocks.
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.
About TXNM Energy
TXNM Energy, Inc., through its subsidiaries, provides electricity and electric services in the United States. It operates through Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP) segments. The PNM segment engages in the generation, transmission, and distribution of electricity. The segment owns and leases communications, office and other equipment, office space, vehicles, and real estate. It generates electricity using coal, natural gas and oil, and nuclear fuel and waste, as well as solar, wind, geothermal, and battery storage energy sources. The TNMP segment provides regulated transmission and distribution services. The segment also owns and leases vehicles, service facilities, and office locations throughout its service territory. The company serves residential, commercial, and industrial customers and end-users of electricity in New Mexico and Texas. The company was formerly known as PNM Resources, Inc and changed its name to TXNM Energy, Inc. in August 2024. TXNM Energy, Inc. was founded in 1882 and is based in Albuquerque, New Mexico.
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