Analyzing TXNM Energy (NYSE:TXNM) & Portland General Electric (NYSE:POR)

Portland General Electric (NYSE:POR) and TXNM Energy (NYSE:TXNM) are both mid-cap utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Analyst Recommendations

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

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

Portland General Electric currently has a consensus target price of $46.44, indicating a potential upside of 4.71%. TXNM Energy has a consensus target price of $52.33, indicating a potential downside of 1.43%. Given Portland General Electric’s higher probable upside, equities research analysts plainly believe Portland General Electric is more favorable than TXNM Energy.

Dividends

Portland General Electric pays an annual dividend of $2.00 per share and has a dividend yield of 4.5%. TXNM Energy pays an annual dividend of $1.63 per share and has a dividend yield of 3.1%. Portland General Electric pays out 66.4% of its earnings in the form of a dividend. TXNM Energy pays out 84.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Portland General Electric is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Portland General Electric	$3.44 billion	1.41	$313.00 million	$3.01	14.74
TXNM Energy	$1.94 billion	2.47	$88.35 million	$1.92	27.65

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.

Profitability

This table compares Portland General Electric and TXNM Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Portland General Electric	9.13%	9.10%	2.75%
TXNM Energy	9.26%	9.69%	2.26%

Insider & Institutional Ownership

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

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.

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.