Big Move for HE, but Do SO’s Margins and Growth Give It the Edge?
Southern (SO) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Hawaiian Electric Industries (HE), suggesting you may be better off investing in SO
- SO’s quarterly revenue growth was 17.0%, vs. HE’s -6.2%.
- In addition, its Last 12 Months revenue growth came in at 9.6%, ahead of HE’s -4.4%.
- SO leads on profitability over both periods – LTM margin of 26.5% and 3-year average of 23.1%.
HE operates electric utility, community banking, and renewable infrastructure investments in Hawaii, serving consumers and businesses through three main segments: Electric Utility, Bank, and Other. SO generates, transmits, and distributes electricity; operates gas distribution, pipelines, wholesale, and marketing; manages extensive natural gas pipelines and storage for diverse customers.
Valuation & Performance Overview
| HE | SO | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 41.9 | 13.9 | SO |
| Revenue Growth | |||
| Last Quarter | -6.2% | 17.0% | SO |
| Last 12 Months | -4.4% | 9.6% | SO |
| Last 3 Year Average | -2.6% | 6.3% | SO |
| Operating Margins | |||
| Last 12 Months | 1.8% | 26.5% | SO |
| Last 3 Year Average | -13.4% | 23.1% | SO |
| Momentum | |||
| Last 3 Year Return | -66.9% | 34.8% | SO |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: HE Revenue Comparison | SO Revenue Comparison
See more margin details: HE Operating Income Comparison | SO Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell SO Stock to see if Southern’s edge holds up under the hood or if Hawaiian Electric Industries still has cards to play (see Buy or Sell HE Stock).
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Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| HE Return | -22% | 21% | 4% | -65% | -31% | 30% | -70% | ||
| SO Return | 1% | 16% | 8% | 2% | 23% | 16% | 87% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 10% | 100% | <=== | |
| Monthly Win Rates [3] | |||||||||
| HE Win Rate | 42% | 50% | 58% | 50% | 33% | 43% | 46% | ||
| SO Win Rate | 67% | 50% | 67% | 50% | 58% | 71% | 61% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| HE Max Drawdown | -29% | -7% | -17% | -76% | -45% | -16% | -32% | ||
| SO Max Drawdown | -32% | -7% | -8% | -12% | -5% | -2% | -11% | <=== | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | ||
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 8/27/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read SO Dip Buyer Analyses and HE Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.