Oklo (NYSE:OKLO) and TXNM Energy (NYSE:TXNM) Critical Contrast

TXNM Energy (NYSE:TXNM) and Oklo (NYSE:OKLO) are both mid-cap energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Volatility and Risk

TXNM Energy has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500. Comparatively, Oklo has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Valuation & Earnings

This table compares TXNM Energy and Oklo”s top-line 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	34.59
Oklo	N/A	N/A	-$73.62 million	($0.54)	-120.42

TXNM Energy has higher revenue and earnings than Oklo. Oklo 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 Oklo’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%
Oklo	N/A	-12.30%	-11.64%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for TXNM Energy and Oklo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	6	1	0	2.14
Oklo	3	5	9	2	2.53

TXNM Energy presently has a consensus price target of $59.30, suggesting a potential upside of 0.25%. Oklo has a consensus price target of $98.93, suggesting a potential upside of 52.14%. Given Oklo’s stronger consensus rating and higher probable upside, analysts plainly believe Oklo is more favorable than TXNM Energy.

Institutional & Insider Ownership

91.7% of TXNM Energy shares are held by institutional investors. Comparatively, 85.0% of Oklo shares are held by institutional investors. 1.4% of TXNM Energy shares are held by company insiders. Comparatively, 18.9% of Oklo shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

TXNM Energy beats Oklo on 8 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 Oklo

Oklo Inc. designs and develops fission power plants to provide reliable and commercial-scale energy to customers in the United States. It also provides used nuclear fuel recycling services. The company was founded in 2013 and is based in Santa Clara, California.