Enel Chile (NYSE:ENIC) vs. TXNM Energy (NYSE:TXNM) Head to Head Survey

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

Risk & Volatility

TXNM Energy has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500. Comparatively, Enel Chile has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Dividends

TXNM Energy pays an annual dividend of $1.69 per share and has a dividend yield of 2.9%. Enel Chile pays an annual dividend of $0.26 per share and has a dividend yield of 6.0%. 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. Enel Chile pays out 61.9% of its earnings in the form of a dividend. Enel Chile is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

91.7% of TXNM Energy shares are owned by institutional investors. Comparatively, 3.2% of Enel Chile shares are owned by institutional investors. 1.1% of TXNM Energy shares are owned 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.

Analyst Recommendations

This is a breakdown of recent ratings for TXNM Energy and Enel Chile, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	3	0	0	2.00
Enel Chile	0	4	1	1	2.50

TXNM Energy currently has a consensus price target of $61.25, indicating a potential upside of 4.64%. Enel Chile has a consensus price target of $4.65, indicating a potential upside of 7.51%. Given Enel Chile’s stronger consensus rating and higher possible upside, analysts plainly believe Enel Chile is more favorable than TXNM Energy.

Valuation & Earnings

This table compares TXNM Energy and Enel Chile”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXNM Energy	$2.23 billion	2.89	$151.89 million	$1.81	32.34
Enel Chile	$4.66 billion	1.28	$537.63 million	$0.42	10.30

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

Profitability

This table compares TXNM Energy and Enel Chile’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%
Enel Chile	12.30%	10.20%	4.50%

Summary

Enel Chile beats TXNM Energy on 12 of the 17 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 Enel Chile

Enel Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company operates through Generation, and Distribution and Networks Segments. It generates electricity through various sources, such as hydroelectric, thermal, wind, solar, and geothermal power plants. It distributes electricity in various municipalities of the Santiago metropolitan region. The company also engages in the sale and transportation of natural gas, and provision of engineering consulting services. It serves residential, commercial, industrial, and other customers. The company was formerly known as Enersis Chile S.A. and changed its name to Enel Chile S.A. in October 2016. The company was incorporated in 2016 and is headquartered in Santiago, Chile. Enel Chile S.A. (SNSE:ENELCHILE) operates as a subsidiary of Enel SpA (BIT:ENEL).