Critical Analysis: Pampa Energia (NYSE:PAM) & TXNM Energy (NYSE:TXNM)

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

Risk & Volatility

Pampa Energia has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Earnings & Valuation

This table compares Pampa Energia and TXNM Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pampa Energia	$2.00 billion	2.28	$377.00 million	$10.53	8.05
TXNM Energy	$2.17 billion	2.95	$151.89 million	$1.81	32.06

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Pampa Energia and TXNM Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pampa Energia	0	3	2	0	2.40
TXNM Energy	0	3	0	0	2.00

Pampa Energia presently has a consensus target price of $105.00, suggesting a potential upside of 23.91%. TXNM Energy has a consensus target price of $61.25, suggesting a potential upside of 5.55%. Given Pampa Energia’s stronger consensus rating and higher probable upside, research analysts plainly believe Pampa Energia is more favorable than TXNM Energy.

Insider & Institutional Ownership

12.8% of Pampa Energia shares are owned by institutional investors. Comparatively, 91.7% of TXNM Energy shares are owned by institutional investors. 55.5% of Pampa Energia shares are owned by company insiders. Comparatively, 1.1% of TXNM Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pampa Energia	23.58%	15.33%	8.26%
TXNM Energy	9.04%	8.11%	2.34%

Summary

Pampa Energia beats TXNM Energy on 10 of the 14 factors compared between the two stocks.

About Pampa Energia

Pampa Energía S.A. operates as an integrated power company in Argentina. The company operates through Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business segments. It generates electricity through thermal plants, hydroelectric plants, and wind farms with a 5,332 megawatt (MW) installed capacity. The company also explores for and produces oil and gas in the provinces of Neuquén and Río Negro. In addition, it produces petrochemicals, such as styrene, synthetic rubber, and polystyrene. Further, the company operates and maintains a 22,391 km high-voltage electricity transmission network in Argentina. Additionally, it holds a concession for the transportation of natural gas with 9,248 km of gas pipelines in the center, west, and south of Argentina; and processes and sells natural gas liquids in Bahía Blanca in the Province of Buenos Aires, as well as offers related advisory services. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in September 2008. Pampa Energía S.A. was incorporated in 1945 and is based in Buenos Aires, Argentina.

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.