PNM Resources (NYSE: PNM) is one of 82 publicly-traded companies in the “Electric Utilities” industry, but how does it contrast to its peers? We will compare PNM Resources to similar companies based on the strength of its earnings, analyst recommendations, institutional ownership, dividends, risk, profitability and valuation.
Institutional & Insider Ownership
92.2% of PNM Resources shares are held by institutional investors. Comparatively, 65.4% of shares of all “Electric Utilities” companies are held by institutional investors. 1.3% of PNM Resources shares are held by insiders. Comparatively, 2.7% of shares of all “Electric Utilities” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares PNM Resources and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|PNM Resources||$1.36 billion||$117.37 million||17.94|
|PNM Resources Competitors||$7.66 billion||$831.80 million||58.99|
PNM Resources’ peers have higher revenue and earnings than PNM Resources. PNM Resources is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Volatility and Risk
PNM Resources has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, PNM Resources’ peers have a beta of 0.64, indicating that their average stock price is 36% less volatile than the S&P 500.
This table compares PNM Resources and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PNM Resources Competitors||-14.48%||9.14%||2.51%|
This is a summary of recent ratings and price targets for PNM Resources and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PNM Resources Competitors||586||3049||2444||43||2.32|
PNM Resources presently has a consensus price target of $38.58, indicating a potential upside of 8.07%. As a group, “Electric Utilities” companies have a potential upside of 13.81%. Given PNM Resources’ peers stronger consensus rating and higher possible upside, analysts plainly believe PNM Resources has less favorable growth aspects than its peers.
PNM Resources pays an annual dividend of $0.97 per share and has a dividend yield of 2.7%. PNM Resources pays out 48.7% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.5% and pay out 104.0% of their earnings in the form of a dividend. PNM Resources has increased its dividend for 6 consecutive years.
PNM Resources peers beat PNM Resources on 11 of the 15 factors compared.
PNM Resources Company Profile
PNM Resources, Inc. (PNMR) is an investor-owned holding company with approximately two regulated utilities providing electricity and electric services in New Mexico and Texas. PNMR’s electric utilities are Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP). It operates in three segments: PNM, TNMP, and Corporate and Other. The Company, through its Website provides information, including news releases, notices of Webcasts, and filings. PNM is an electric utility that provides electric generation, transmission and distribution service to its rate-regulated customers. TNMP is a regulated utility operating in Texas. TNMP provides transmission and distribution services in Texas under the provisions of Texas Electric Choice Act (TECA) and the Texas Public Utility Regulatory Act. The Corporate and Other segment includes PNMR holding company activities, related to corporate level debt and PNMR Services Company.
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