TXNM Energy (NYSE:TXNM – Get Free Report) and Equatorial Energia (OTCMKTS:EQUEY – Get Free Report) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
Earnings and Valuation
This table compares TXNM Energy and Equatorial Energia”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TXNM Energy | $2.17 billion | 2.74 | $151.89 million | $1.81 | 31.76 |
| Equatorial Energia | N/A | N/A | N/A | $0.25 | 26.62 |
Analyst Ratings
This is a breakdown of recent ratings and price targets for TXNM Energy and Equatorial Energia, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TXNM Energy | 0 | 3 | 0 | 0 | 2.00 |
| Equatorial Energia | 0 | 0 | 0 | 0 | 0.00 |
TXNM Energy presently has a consensus target price of $61.25, indicating a potential upside of 6.55%. Given TXNM Energy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe TXNM Energy is more favorable than Equatorial Energia.
Dividends
TXNM Energy pays an annual dividend of $1.69 per share and has a dividend yield of 2.9%. Equatorial Energia pays an annual dividend of $0.07 per share and has a dividend yield of 1.1%. 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. Equatorial Energia pays out 29.7% of its earnings in the form of a dividend.
Profitability
This table compares TXNM Energy and Equatorial Energia’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% |
| Equatorial Energia | N/A | N/A | N/A |
Insider and Institutional Ownership
91.7% of TXNM Energy shares are owned by institutional investors. Comparatively, 0.0% of Equatorial Energia shares are owned by institutional investors. 1.1% of TXNM Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
TXNM Energy beats Equatorial Energia on 11 of the 12 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 Equatorial Energia
Equatorial Energia S.A., through its subsidiaries, engages in the electricity generation, distribution, transmission, and sanitation operations in Brazil. It operates through Distribution, Transmission, Wind Generation, Services, Sanitation, and Other segments. The company generates energy from wind, solar, biomass, qualified co-generation, and hydroelectric plants. It also distributes electric energy in the 217 municipalities of Maranhão State with a concession area of approximately 332,000 square kilometers serving approximately 2.5 million consumers; and 144 municipalities of Pará State with a concession area covering 1,248,000 square kilometers serving approximately 2.6 million consumers. In addition, the company distributes electric energy to 224 municipalities of Piauí State with a concession area covering 251,000 square kilometers serving approximately 1.3 million consumers; 102 municipalities of Alagoas State with a concession area covering 27,848 square kilometers serving approximately 1.2 million consumers; 16 municipalities of Amapá State serving approximately 209,000 consumers; and 72 municipalities of Rio de Janeiro State serving approximately 1.8 million consumers. Equatorial Energia S.A. was founded in 1958 and is based in Brasília, Brazil.
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