Head-To-Head Review: TXNM Energy (NYSE:TXNM) versus Spruce Power (NYSE:SPRU)

TXNM Energy (NYSE:TXNM) and Spruce Power (NYSE:SPRU) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Insider and Institutional Ownership

91.7% of TXNM Energy shares are held by institutional investors. Comparatively, 20.8% of Spruce Power shares are held by institutional investors. 1.4% of TXNM Energy shares are held by company insiders. Comparatively, 9.6% of Spruce Power shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares TXNM Energy and Spruce Power”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXNM Energy	$1.94 billion	2.29	$88.35 million	$1.92	25.62
Spruce Power	$79.86 million	0.63	-$65.83 million	($5.06)	-0.54

TXNM Energy has higher revenue and earnings than Spruce Power. Spruce Power is trading at a lower price-to-earnings ratio than TXNM Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for TXNM Energy and Spruce Power, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	2	3	0	2.60
Spruce Power	0	0	0	0	0.00

TXNM Energy currently has a consensus price target of $52.00, indicating a potential upside of 5.71%. Given TXNM Energy’s stronger consensus rating and higher probable upside, analysts plainly believe TXNM Energy is more favorable than Spruce Power.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TXNM Energy	9.26%	9.69%	2.26%
Spruce Power	-121.98%	-23.98%	-5.48%

Volatility & Risk

TXNM Energy has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Spruce Power has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Summary

TXNM Energy beats Spruce Power on 11 of the 13 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 Spruce Power

Spruce Power Holding Corporation owns and operates distributed solar energy assets in the United States. The company provides subscription-based services for homeowners and businesses to own and maintain rooftop solar and battery storage. It offers its subscription-based services to approximately 75,000 customers. The company is headquartered in Denver, Colorado.