TXNM Energy (NYSE:TXNM – Get Free Report) and Alvopetro Energy (OTCMKTS:ALVOF – Get Free Report) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
91.7% of TXNM Energy shares are held by institutional investors. 1.3% of TXNM Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and target prices for TXNM Energy and Alvopetro Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TXNM Energy | 0 | 6 | 2 | 0 | 2.25 |
| Alvopetro Energy | 0 | 1 | 0 | 0 | 2.00 |
Dividends
TXNM Energy pays an annual dividend of $1.63 per share and has a dividend yield of 2.8%. Alvopetro Energy pays an annual dividend of $0.40 per share and has a dividend yield of 7.7%. TXNM Energy pays out 95.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alvopetro Energy pays out 76.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alvopetro Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares TXNM Energy and Alvopetro Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TXNM Energy | 8.67% | 7.20% | 1.84% |
| Alvopetro Energy | 37.69% | 22.24% | 17.66% |
Valuation & Earnings
This table compares TXNM Energy and Alvopetro Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TXNM Energy | $1.97 billion | 3.27 | $242.68 million | $1.71 | 34.62 |
| Alvopetro Energy | $45.52 million | 4.18 | $16.30 million | $0.52 | 9.95 |
TXNM Energy has higher revenue and earnings than Alvopetro Energy. Alvopetro 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.
Risk and Volatility
TXNM Energy has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500. Comparatively, Alvopetro Energy has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500.
Summary
TXNM Energy beats Alvopetro Energy on 10 of the 16 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 Alvopetro Energy
Alvopetro Energy Ltd. operates as an independent upstream and midstream operator. It engages in the acquisition, exploration, development, and production of hydrocarbons. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy Ltd. was incorporated in 2013 and is headquartered in Calgary, Canada.
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