WallStSmart

Hawaiian Electric Industries Inc (HE)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 819% more annual revenue ($30.18B vs $3.28B). SO leads profitability with a 15.4% profit margin vs 6.8%. SO appears more attractively valued with a PEG of 2.07. SO earns a higher WallStSmart Score of 66/100 (B-).

HE

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 4.0Value: 7.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.54

SO

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 4.0Quality: 3.0
Piotroski: 2/9Altman Z: 0.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HEUndervalued (+33.1%)

Margin of Safety

+33.1%

Fair Value

$24.79

Current Price

$10.38

$14.41 discount

UndervaluedFair: $24.79Overvalued
SOSignificantly Overvalued (-40.5%)

Margin of Safety

-40.5%

Fair Value

$62.06

Current Price

$87.17

$25.11 premium

UndervaluedFair: $62.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HE4 strengths · Avg: 9.5/10
P/E RatioValuation
8.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
373.3%10/10

Earnings expanding 373.3% YoY

Revenue GrowthGrowth
25.9%8/10

Revenue surging 25.9% year-over-year

SO4 strengths · Avg: 8.3/10
Market CapQuality
$100.28B9/10

Large-cap with strong market position

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.6%8/10

Strong operational efficiency at 29.6%

EPS GrowthGrowth
30.4%8/10

Earnings expanding 30.4% YoY

Areas to Watch

HE4 concerns · Avg: 3.0/10
Market CapQuality
$1.78B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
8.0%3/10

ROE of 8.0% — below average capital efficiency

Profit MarginProfitability
6.8%3/10

6.8% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

SO4 concerns · Avg: 3.5/10
PEG RatioValuation
2.074/10

Expensive relative to growth rate

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

Debt/EquityHealth
1.953/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : HE

The strongest argument for HE centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 25.9% demonstrates continued momentum.

Bull Case : SO

The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 29.6%.

Bear Case : HE

The primary concerns for HE are Market Cap, Return on Equity, Profit Margin. Debt-to-equity of 1.60 is elevated, increasing financial risk.

Bear Case : SO

The primary concerns for SO are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.95 is elevated, increasing financial risk.

Key Dynamics to Monitor

HE profiles as a growth stock while SO is a value play — different risk/reward profiles.

HE carries more volatility with a beta of 0.49 — expect wider price swings.

HE is growing revenue faster at 25.9% — sustainability is the question.

SO generates stronger free cash flow (-293M), providing more financial flexibility.

Bottom Line

SO scores higher overall (66/100 vs 64/100), backed by strong 15.4% margins. HE offers better value entry with a 33.1% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Hawaiian Electric Industries Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Hawaiian Electric Industries, Inc. is engaged in the renewable / sustainable infrastructure, banking and electricity utility investment businesses in the State of Hawaii. The company is headquartered in Honolulu, Hawaii.

Southern Company

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.

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