TXNM Energy (NYSE:TXNM – Get Free Report) and Pacific Gas & Electric (NYSE:PCG – Get Free Report) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Valuation and Earnings
This table compares TXNM Energy and Pacific Gas & Electric”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TXNM Energy | $2.17 billion | 2.98 | $151.89 million | $2.09 | 28.06 |
| Pacific Gas & Electric | $25.77 billion | 1.37 | $2.70 billion | $1.35 | 9.73 |
Risk and Volatility
TXNM Energy has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, Pacific Gas & Electric has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.
Dividends
TXNM Energy pays an annual dividend of $1.69 per share and has a dividend yield of 2.9%. Pacific Gas & Electric pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. TXNM Energy pays out 80.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pacific Gas & Electric pays out 14.8% of its earnings in the form of a dividend. Pacific Gas & Electric has increased its dividend for 1 consecutive years.
Insider and Institutional Ownership
91.7% of TXNM Energy shares are owned by institutional investors. Comparatively, 78.6% of Pacific Gas & Electric shares are owned by institutional investors. 1.1% of TXNM Energy shares are owned by company insiders. Comparatively, 0.2% of Pacific Gas & Electric shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for TXNM Energy and Pacific Gas & Electric, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TXNM Energy | 0 | 0 | 1 | 0 | 3.00 |
| Pacific Gas & Electric | 0 | 9 | 7 | 0 | 2.44 |
Pacific Gas & Electric has a consensus price target of $17.21, suggesting a potential upside of 31.06%. Given Pacific Gas & Electric’s higher possible upside, analysts plainly believe Pacific Gas & Electric is more favorable than TXNM Energy.
Profitability
This table compares TXNM Energy and Pacific Gas & Electric’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TXNM Energy | 9.04% | 8.11% | 2.34% |
| Pacific Gas & Electric | 12.00% | 11.49% | 2.57% |
Summary
Pacific Gas & Electric beats TXNM Energy 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 Pacific Gas & Electric
PG&E Corp. operates as a holding company, which engages in generation, transmission, and distribution of electricity and natural gas to customers. It specializes in energy, utility, power, gas, electricity, solar and sustainability. The company was founded in 1995 and is headquartered in Oakland, CA.
Receive News & Ratings for TXNM Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TXNM Energy and related companies with MarketBeat.com's FREE daily email newsletter.
