Contrasting Portland General Electric (NYSE:POR) and TXNM Energy (NYSE:TXNM)

TXNM Energy (NYSE:TXNM) and Portland General Electric (NYSE:POR) are both mid-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Profitability

This table compares TXNM Energy and Portland General Electric’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%
Portland General Electric	9.13%	9.10%	2.75%

Valuation & Earnings

This table compares TXNM Energy and Portland General Electric”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXNM Energy	$1.91 billion	2.44	$88.35 million	$2.67	19.33
Portland General Electric	$3.44 billion	1.40	$313.00 million	$3.01	14.68

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

Dividends

TXNM Energy pays an annual dividend of $1.63 per share and has a dividend yield of 3.2%. Portland General Electric pays an annual dividend of $2.00 per share and has a dividend yield of 4.5%. TXNM Energy pays out 61.0% of its earnings in the form of a dividend. Portland General Electric pays out 66.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional and Insider Ownership

91.7% of TXNM Energy shares are held by institutional investors. 1.4% of TXNM Energy shares are held by insiders. Comparatively, 0.5% of Portland General Electric shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for TXNM Energy and Portland General Electric, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	2	4	0	2.67
Portland General Electric	1	5	3	0	2.22

TXNM Energy currently has a consensus target price of $52.83, indicating a potential upside of 2.36%. Portland General Electric has a consensus target price of $46.44, indicating a potential upside of 5.14%. Given Portland General Electric’s higher probable upside, analysts plainly believe Portland General Electric is more favorable than TXNM Energy.

Volatility & Risk

TXNM Energy has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Portland General Electric has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Summary

TXNM Energy beats Portland General Electric 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 Portland General Electric

Portland General Electric Company, an integrated electric utility company, engages in the generation, wholesale purchase, transmission, distribution, and retail sale of electricity in the state of Oregon. It operates six thermal plants, three wind farms, and seven hydroelectric facilities. As of December 31, 2023, the company owned an electric transmission system consisting of 1,254 circuit miles, including 287 circuit miles of 500 kilovolt line, 413 circuit miles of 230 kilovolt line, and 554 miles of 115 kilovolt line; and served 934 thousand retail customers in 51 cities. It also has 28,868 circuit miles of distribution lines. Portland General Electric Company was founded in 1889 and is headquartered in Portland, Oregon.