Critical Survey: NeoVolta (NASDAQ:NEOV) and TXNM Energy (NYSE:TXNM)

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

Earnings and Valuation

This table compares TXNM Energy and NeoVolta”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXNM Energy	$1.97 billion	3.05	$242.68 million	$1.94	29.39
NeoVolta	$2.64 million	65.27	-$2.30 million	($0.12)	-42.08

TXNM Energy has higher revenue and earnings than NeoVolta. NeoVolta 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 Recommendations

This is a summary of recent recommendations for TXNM Energy and NeoVolta, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	4	4	0	2.50
NeoVolta	0	0	1	0	3.00

TXNM Energy presently has a consensus target price of $54.8571, indicating a potential downside of 3.80%. NeoVolta has a consensus target price of $7.50, indicating a potential upside of 48.51%. Given NeoVolta’s stronger consensus rating and higher probable upside, analysts clearly believe NeoVolta is more favorable than TXNM Energy.

Volatility and Risk

TXNM Energy has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, NeoVolta has a beta of -0.91, meaning that its share price is 191% less volatile than the S&P 500.

Institutional & Insider Ownership

91.7% of TXNM Energy shares are owned by institutional investors. Comparatively, 5.1% of NeoVolta shares are owned by institutional investors. 1.3% of TXNM Energy shares are owned by company insiders. Comparatively, 15.2% of NeoVolta shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TXNM Energy	8.75%	7.34%	1.77%
NeoVolta	-96.69%	-105.35%	-88.75%

Summary

TXNM Energy beats NeoVolta on 10 of the 14 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 NeoVolta

NeoVolta Inc. designs, manufactures, and sells energy storage systems in the United States. It provides NV14, NV14-K, and NV 24 energy storage systems, which stores and uses energy through batteries and an inverter at residential or commercial sites. The company markets and sells its products directly to certified solar installers and solar equipment distributors. NeoVolta Inc. was formed in 2018 and is headquartered in Poway, California.