WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 877% more annual revenue ($30.18B vs $3.09B). SO leads profitability with a 14.5% profit margin vs 4.1%. HE appears more attractively valued with a PEG of 2.28. SO earns a higher WallStSmart Score of 56/100 (C).

HE

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 4.5Value: 7.3Quality: 5.0
Piotroski: 4/9Altman Z: 0.54

SO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 3.3Quality: 2.5
Piotroski: 2/9Altman Z: 0.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HEUndervalued (+30.1%)

Margin of Safety

+30.1%

Fair Value

$23.73

Current Price

$13.54

$10.19 discount

UndervaluedFair: $23.73Overvalued
SOSignificantly Overvalued (-47.7%)

Margin of Safety

-47.7%

Fair Value

$62.70

Current Price

$92.60

$29.90 premium

UndervaluedFair: $62.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HE2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

P/E RatioValuation
18.0x8/10

Attractively priced relative to earnings

SO3 strengths · Avg: 8.3/10
Market CapQuality
$102.01B9/10

Large-cap with strong market position

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

Areas to Watch

HE4 concerns · Avg: 3.5/10
PEG RatioValuation
2.284/10

Expensive relative to growth rate

Revenue GrowthGrowth
0.3%4/10

0.3% revenue growth

Return on EquityProfitability
8.0%3/10

ROE of 8.0% — below average capital efficiency

Profit MarginProfitability
4.1%3/10

4.1% margin — thin

SO4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.532/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.8%2/10

Earnings declined 0.8%

Free Cash FlowQuality
$-1.72B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : HE

The strongest argument for HE centers on Price/Book, P/E Ratio.

Bull Case : SO

The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.

Bear Case : HE

The primary concerns for HE are PEG Ratio, Revenue Growth, Return on Equity. Thin 4.1% margins leave little buffer for downturns.

Bear Case : SO

The primary concerns for SO are Piotroski F-Score, PEG Ratio, EPS Growth. Debt-to-equity of 2.05 is elevated, increasing financial risk.

Key Dynamics to Monitor

HE carries more volatility with a beta of 0.56 — expect wider price swings.

SO is growing revenue faster at 8.0% — sustainability is the question.

HE generates stronger free cash flow (-43M), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SO scores higher overall (56/100 vs 54/100). HE offers better value entry with a 30.1% margin of safety. Both earn "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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