IDACORP (NYSE:IDA) versus TXNM Energy (NYSE:TXNM) Financial Survey

TXNM Energy (NYSE:TXNM) and IDACORP (NYSE:IDA) are both mid-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Volatility & Risk

TXNM Energy has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, IDACORP has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Institutional & Insider Ownership

89.1% of IDACORP shares are held by institutional investors. 0.5% of IDACORP shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for TXNM Energy and IDACORP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	1	1	0	2.50
IDACORP	0	7	0	0	2.00

TXNM Energy presently has a consensus target price of $48.00, suggesting a potential upside of 10.42%. IDACORP has a consensus target price of $103.57, suggesting a potential upside of 3.46%. Given TXNM Energy’s stronger consensus rating and higher probable upside, equities analysts clearly believe TXNM Energy is more favorable than IDACORP.

Earnings and Valuation

This table compares TXNM Energy and IDACORP”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXNM Energy	$1.84 billion	2.13	$88.35 million	N/A	N/A
IDACORP	$1.82 billion	2.92	$261.20 million	$4.98	20.10

IDACORP has lower revenue, but higher earnings than TXNM Energy.

Dividends

TXNM Energy pays an annual dividend of $1.55 per share and has a dividend yield of 3.6%. IDACORP pays an annual dividend of $3.32 per share and has a dividend yield of 3.3%. IDACORP pays out 66.7% of its earnings in the form of a dividend. IDACORP has raised its dividend for 12 consecutive years.

Profitability

This table compares TXNM Energy and IDACORP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TXNM Energy	4.50%	10.15%	2.36%
IDACORP	15.04%	9.16%	3.25%

Summary

IDACORP beats TXNM Energy on 9 of the 16 factors compared between the two stocks.

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.

About IDACORP

IDACORP, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, purchase, and sale of electric energy in the United States. The company operates 17 hydropower generating plants located in southern Idaho and eastern Oregon; three natural gas-fired plants in southern Idaho; and interests in two coal-fired steam electric generating plants located in Wyoming and Nevada. As of December 31, 2023, it had approximately 4,762 pole-miles of high-voltage transmission lines; 23 step-up transmission substations located at power plants; 21 transmission substations; 11 switching stations; 30 mixed-use transmission and distribution substations; 186 energized distribution substations; and 29,714 pole-miles of distribution lines, and 131 MW of battery storage, as well as provides electric utility services to approximately 633,000 retail customers in southern Idaho and eastern Oregon. The company serves commercial and industrial customers, which involved in food processing, electronics and general manufacturing, agriculture, health care, government, and education. It also invests in housing and other real estate tax credit investments. IDACORP, Inc. was founded in 1915 and is headquartered in Boise, Idaho.