Expand Energy (NASDAQ:EXE – Get Free Report) and TXNM Energy (NYSE:TXNM – Get Free Report) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Institutional and Insider Ownership
97.9% of Expand Energy shares are owned by institutional investors. Comparatively, 91.7% of TXNM Energy shares are owned by institutional investors. 0.2% of Expand Energy shares are owned by insiders. Comparatively, 1.1% of TXNM Energy shares are owned 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.
Valuation & Earnings
This table compares Expand Energy and TXNM Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Expand Energy | $12.12 billion | 1.82 | $1.82 billion | $13.41 | 6.87 |
| TXNM Energy | $2.19 billion | 2.99 | $151.89 million | $1.39 | 42.52 |
Expand Energy has higher revenue and earnings than TXNM Energy. Expand Energy is trading at a lower price-to-earnings ratio than TXNM Energy, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Expand Energy has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500.
Dividends
Expand Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.5%. TXNM Energy pays an annual dividend of $1.69 per share and has a dividend yield of 2.9%. Expand Energy pays out 17.2% of its earnings in the form of a dividend. TXNM Energy pays out 121.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares Expand Energy and TXNM Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Expand Energy | 22.53% | 10.26% | 6.73% |
| TXNM Energy | 6.96% | 7.18% | 2.05% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Expand Energy and TXNM Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Expand Energy | 1 | 5 | 11 | 2 | 2.74 |
| TXNM Energy | 0 | 3 | 0 | 0 | 2.00 |
Expand Energy presently has a consensus target price of $131.45, suggesting a potential upside of 42.75%. TXNM Energy has a consensus target price of $61.25, suggesting a potential upside of 3.62%. Given Expand Energy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Expand Energy is more favorable than TXNM Energy.
Summary
Expand Energy beats TXNM Energy on 13 of the 17 factors compared between the two stocks.
About Expand Energy
Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.
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.
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