Expand Energy (NASDAQ:EXE – Get Free Report) and TXNM Energy (NYSE:TXNM – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.
Profitability
This table compares Expand Energy and TXNM Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Expand Energy | 22.53% | 10.26% | 6.73% |
| TXNM Energy | 6.96% | 7.18% | 2.05% |
Dividends
Expand Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.5%. TXNM Energy pays an annual dividend of $1.69 per share and has a dividend yield of 2.9%. Expand Energy pays out 17.2% of its earnings in the form of a dividend. 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.
Risk & Volatility
Earnings & Valuation
This table compares Expand Energy and TXNM Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Expand Energy | $12.12 billion | 1.78 | $1.82 billion | $13.41 | 6.74 |
| TXNM Energy | $2.17 billion | 2.97 | $151.89 million | $1.39 | 41.79 |
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.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Expand Energy and TXNM Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Expand Energy | 1 | 5 | 11 | 2 | 2.74 |
| TXNM Energy | 0 | 3 | 0 | 0 | 2.00 |
Expand Energy presently has a consensus price target of $131.45, suggesting a potential upside of 45.38%. TXNM Energy has a consensus price target of $61.25, suggesting a potential upside of 5.45%. Given Expand Energy’s stronger consensus rating and higher possible upside, research analysts plainly believe Expand Energy is more favorable than TXNM Energy.
Insider & Institutional Ownership
97.9% of Expand Energy shares are held by institutional investors. Comparatively, 91.7% of TXNM Energy shares are held by institutional investors. 0.2% of Expand Energy shares are held by insiders. Comparatively, 1.1% 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 is poised for long-term growth.
Summary
Expand Energy beats TXNM Energy on 13 of the 17 factors compared between the two stocks.
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.
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.
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