Financial Contrast: TXNM Energy (NYSE:TXNM) and Expand Energy (NASDAQ:EXE)

TXNM Energy (NYSE:TXNM) and Expand Energy (NASDAQ:EXE) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

91.7% of TXNM Energy shares are held by institutional investors. Comparatively, 97.9% of Expand Energy shares are held by institutional investors. 1.1% of TXNM Energy shares are held by company insiders. Comparatively, 0.2% of Expand Energy shares are held 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.

Dividends

TXNM Energy pays an annual dividend of $1.69 per share and has a dividend yield of 2.8%. Expand Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.5%. 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. Expand Energy pays out 17.2% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for TXNM Energy and Expand Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	3	0	0	2.00
Expand Energy	1	5	11	2	2.74

TXNM Energy presently has a consensus target price of $61.25, indicating a potential upside of 3.28%. Expand Energy has a consensus target price of $131.45, indicating a potential upside of 42.78%. Given Expand Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Expand Energy is more favorable than TXNM Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TXNM Energy	6.96%	7.18%	2.05%
Expand Energy	22.53%	10.26%	6.73%

Volatility and Risk

TXNM Energy has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, Expand Energy has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXNM Energy	$2.17 billion	3.03	$151.89 million	$1.39	42.66
Expand Energy	$12.12 billion	1.82	$1.82 billion	$13.41	6.87

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.

Summary

Expand Energy beats TXNM Energy on 13 of the 17 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 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.