Financial Contrast: TXNM Energy (NYSE:TXNM) and Vistra (NYSE:VST)

TXNM Energy (NYSE:TXNM) and Vistra (NYSE:VST) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares TXNM Energy and Vistra’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TXNM Energy	9.26%	9.69%	2.26%
Vistra	12.51%	57.63%	6.02%

Institutional and Insider Ownership

91.7% of TXNM Energy shares are owned by institutional investors. Comparatively, 90.9% of Vistra shares are owned by institutional investors. 1.3% of TXNM Energy shares are owned by insiders. Comparatively, 1.4% of Vistra 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 Ratings

This is a summary of current ratings for TXNM Energy and Vistra, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	4	4	0	2.50
Vistra	0	3	10	1	2.86

TXNM Energy currently has a consensus price target of $54.86, indicating a potential downside of 3.06%. Vistra has a consensus price target of $172.69, indicating a potential downside of 2.60%. Given Vistra’s stronger consensus rating and higher probable upside, analysts plainly believe Vistra is more favorable than TXNM Energy.

Risk and Volatility

TXNM Energy has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500. Comparatively, Vistra has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Dividends

TXNM Energy pays an annual dividend of $1.63 per share and has a dividend yield of 2.9%. Vistra pays an annual dividend of $0.90 per share and has a dividend yield of 0.5%. TXNM Energy pays out 72.4% of its earnings in the form of a dividend. Vistra pays out 14.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Vistra has increased its dividend for 6 consecutive years.

Earnings & Valuation

This table compares TXNM Energy and Vistra”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXNM Energy	$2.02 billion	2.60	$88.35 million	$2.25	25.15
Vistra	$18.10 billion	3.32	$1.49 billion	$6.36	27.88

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

Summary

Vistra beats TXNM Energy on 16 of the 18 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 Vistra

Vistra Corp., together with its subsidiaries, operates as an integrated retail electricity and power generation company. The company operates through six segments: Retail, Texas, East, West, Sunset, and Asset Closure. It retails electricity and natural gas to residential, commercial, and industrial customers across states in the United States and the District of Columbia. In addition, the company is involved in the electricity generation, wholesale energy purchases and sales, commodity risk management, fuel production, and fuel logistics management activities. It serves approximately 4 million customers with a generation capacity of approximately 37,000 megawatts with a portfolio of natural gas, nuclear, coal, solar, and battery energy storage facilities. The company was formerly known as Vistra Energy Corp. and changed its name to Vistra Corp. in July 2020. Vistra Corp. was founded in 1882 and is based in Irving, Texas.