TXNM Energy (TXNM) vs. Its Rivals Critical Analysis

TXNM Energy (NYSE:TXNM) is one of 105 public companies in the “Electric services” industry, but how does it compare to its competitors? We will compare TXNM Energy to related companies based on the strength of its institutional ownership, profitability, dividends, valuation, analyst recommendations, earnings and risk.

Profitability

This table compares TXNM Energy and its competitors’ 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%
TXNM Energy Competitors	1.11%	7.14%	1.27%

Risk and Volatility

TXNM Energy has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, TXNM Energy’s competitors have a beta of -0.99, indicating that their average stock price is 199% less volatile than the S&P 500.

Valuation and Earnings

This table compares TXNM Energy and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TXNM Energy	$1.94 billion	$88.35 million	23.86
TXNM Energy Competitors	$74.48 billion	$582.15 million	5.49

TXNM Energy’s competitors have higher revenue and earnings than TXNM Energy. TXNM Energy is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

TXNM Energy pays an annual dividend of $1.55 per share and has a dividend yield of 3.4%. TXNM Energy pays out 80.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Electric services” companies pay a dividend yield of 3.1% and pay out 67.3% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and price targets for TXNM Energy and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	1	3	0	2.75
TXNM Energy Competitors	1071	4762	4616	93	2.35

TXNM Energy currently has a consensus target price of $47.75, indicating a potential upside of 4.23%. As a group, “Electric services” companies have a potential upside of 6.64%. Given TXNM Energy’s competitors higher possible upside, analysts plainly believe TXNM Energy has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

91.7% of TXNM Energy shares are held by institutional investors. Comparatively, 58.0% of shares of all “Electric services” companies are held by institutional investors. 1.4% of TXNM Energy shares are held by insiders. Comparatively, 7.3% of shares of all “Electric services” companies 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.

Summary

TXNM Energy beats its competitors on 9 of the 15 factors compared.

TXNM Energy Company Profile

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.