HE vs MGEE vs OTTR vs AVA

For growth investors, MGE Energy, Inc.

(MGEE) is the stronger pick with 9. 9% revenue growth year-over-year, versus -2. 1% for Hawaiian Electric Industries, Inc. (HE). Otter Tail Corporation (OTTR) offers the better valuation at 13. 4x trailing P/E (15. 9x forward), making it the more compelling value choice. Analysts rate Hawaiian Electric Industries, Inc. (HE) a "Hold" — based on 13 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Otter Tail Corporation (OTTR) is the cheapest at 13.

4x versus MGE Energy, Inc. at 20. 1x. On forward P/E, Hawaiian Electric Industries, Inc. is actually cheaper at 14. 4x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Otter Tail Corporation wins at 0. 69x versus Avista Corporation's 3. 47x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Otter Tail Corporation (OTTR) delivered a total return of +98.

1%, compared to -58. 2% for Hawaiian Electric Industries, Inc. (HE). Over 10 years, the gap is even starker: OTTR returned +241. 8% versus HE's -25. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Avista Corporation (AVA) is the lower-risk stock at -0.

00β versus Hawaiian Electric Industries, Inc. 's 0. 56β — meaning HE is approximately -18830% more volatile than AVA relative to the S&P 500. On balance sheet safety, Otter Tail Corporation (OTTR) carries a lower debt/equity ratio of 59% versus 2% for Hawaiian Electric Industries, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), MGE Energy, Inc.

(MGEE) is pulling ahead at 9. 9% versus -2. 1% for Hawaiian Electric Industries, Inc. (HE). On earnings-per-share growth, the picture is similar: MGE Energy, Inc. grew EPS 11. 7% year-over-year, compared to -720. 4% for Hawaiian Electric Industries, Inc.. Over a 3-year CAGR, AVA leads at 4. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Otter Tail Corporation (OTTR) is the more profitable company, earning 21.

2% net margin versus -44. 2% for Hawaiian Electric Industries, Inc. — meaning it keeps 21. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: OTTR leads at 26. 5% versus -53. 0% for HE. At the gross margin level — before operating expenses — MGEE leads at 97. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Otter Tail Corporation (OTTR) is the more undervalued stock at a PEG of 0. 69x versus Avista Corporation's 3. 47x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Hawaiian Electric Industries, Inc. (HE) trades at 14. 4x forward P/E versus 18. 9x for MGE Energy, Inc. — 4. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AVA: -0. 8% to $40. 67.

All stocks in this comparison pay dividends.

Avista Corporation (AVA) offers the highest yield at 4. 8%, versus 1. 3% for Hawaiian Electric Industries, Inc. (HE).

For long-horizon retirement investors, Avista Corporation (AVA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.

00), 4. 8% yield). Both have compounded well over 10 years (AVA: +40. 1%, HE: -25. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: HE is a small-cap quality compounder stock; MGEE is a small-cap quality compounder stock; OTTR is a small-cap deep-value stock; AVA is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.