Comparing TXNM Energy (NYSE:TXNM) & Enel Chile (NYSE:ENIC)

Enel Chile (NYSE:ENIC) and TXNM Energy (NYSE:TXNM) are both mid-cap utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Dividends

Enel Chile pays an annual dividend of $0.26 per share and has a dividend yield of 6.0%. TXNM Energy pays an annual dividend of $1.69 per share and has a dividend yield of 2.9%. Enel Chile pays out 61.9% of its earnings in the form of a dividend. TXNM Energy pays out 93.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enel Chile is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enel Chile	12.30%	10.20%	4.50%
TXNM Energy	9.04%	8.11%	2.34%

Valuation and Earnings

This table compares Enel Chile and TXNM Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enel Chile	$4.66 billion	1.28	$537.63 million	$0.42	10.30
TXNM Energy	$2.23 billion	2.89	$151.89 million	$1.81	32.34

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

Insider and Institutional Ownership

3.2% of Enel Chile shares are owned by institutional investors. Comparatively, 91.7% of TXNM Energy shares are owned by institutional investors. 1.1% of TXNM Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Enel Chile and TXNM Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enel Chile	0	4	1	1	2.50
TXNM Energy	0	3	0	0	2.00

Enel Chile currently has a consensus target price of $4.65, suggesting a potential upside of 7.51%. TXNM Energy has a consensus target price of $61.25, suggesting a potential upside of 4.64%. Given Enel Chile’s stronger consensus rating and higher possible upside, research analysts clearly believe Enel Chile is more favorable than TXNM Energy.

Volatility & Risk

Enel Chile has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500.

Summary

Enel Chile beats TXNM Energy on 12 of the 17 factors compared between the two stocks.

About Enel Chile

Enel Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company operates through Generation, and Distribution and Networks Segments. It generates electricity through various sources, such as hydroelectric, thermal, wind, solar, and geothermal power plants. It distributes electricity in various municipalities of the Santiago metropolitan region. The company also engages in the sale and transportation of natural gas, and provision of engineering consulting services. It serves residential, commercial, industrial, and other customers. The company was formerly known as Enersis Chile S.A. and changed its name to Enel Chile S.A. in October 2016. The company was incorporated in 2016 and is headquartered in Santiago, Chile. Enel Chile S.A. (SNSE:ENELCHILE) operates as a subsidiary of Enel SpA (BIT:ENEL).

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.