Head to Head Review: TXNM Energy (NYSE:TXNM) versus W2 Energy (OTCMKTS:AEPT)

TXNM Energy (NYSE:TXNM) and W2 Energy (OTCMKTS:AEPT) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for TXNM Energy and W2 Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	6	1	0	2.14
W2 Energy	0	0	0	0	0.00

TXNM Energy presently has a consensus price target of $60.88, suggesting a potential upside of 3.20%. Given TXNM Energy’s stronger consensus rating and higher possible upside, equities analysts plainly believe TXNM Energy is more favorable than W2 Energy.

Risk and Volatility

TXNM Energy has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500. Comparatively, W2 Energy has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500.

Profitability

This table compares TXNM Energy and W2 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%
W2 Energy	N/A	N/A	N/A

Insider & Institutional Ownership

91.7% of TXNM Energy shares are held by institutional investors. Comparatively, 2.3% of W2 Energy shares are held by institutional investors. 1.3% of TXNM Energy shares are held by 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.

Earnings and Valuation

This table compares TXNM Energy and W2 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	$2.19 billion	2.98	$151.89 million	$1.39	42.44
W2 Energy	$23.81 million	0.00	N/A	N/A	N/A

TXNM Energy has higher revenue and earnings than W2 Energy.

Summary

TXNM Energy beats W2 Energy on 10 of the 10 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 W2 Energy

American Environmental Partners, Inc., through its subsidiaries, sources, treats, and distributes reclaimed water in the United States. It engages in the designing, construction, and operation of regional water treatment facilities that serve industrial, energy, and government sectors. The company also focuses on drilling, operating, and partnership opportunities in the upstream oil and gas space. It also provides geotechnical services; educational marketing platforms of podcasts and videography; and construction, drilling, flowback, completions, and well-site services. The company was formerly known as American Energy Partners, Inc. and changed its name to American Environmental Partners, Inc. in October 2023. The company was incorporated in 1997 and is based in Canonsburg, Pennsylvania.