Financial Analysis: PNM Resources (PNM) vs. EDP-Energias de Portugal, S.A (EDPFY)
PNM Resources (NYSE:PNM) and EDP-Energias de Portugal, S.A (OTCMKTS:EDPFY) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.
Insider & Institutional Ownership
91.8% of PNM Resources shares are held by institutional investors. Comparatively, 0.1% of EDP-Energias de Portugal, S.A shares are held by institutional investors. 1.3% of PNM Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
PNM Resources pays an annual dividend of $1.06 per share and has a dividend yield of 2.7%. EDP-Energias de Portugal, S.A pays an annual dividend of $1.45 per share and has a dividend yield of 4.0%. PNM Resources pays out 54.6% of its earnings in the form of a dividend. PNM Resources has raised its dividend for 6 consecutive years.
Risk and Volatility
PNM Resources has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, EDP-Energias de Portugal, S.A has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for PNM Resources and EDP-Energias de Portugal, S.A, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EDP-Energias de Portugal, S.A||0||1||0||0||2.00|
PNM Resources currently has a consensus price target of $37.57, suggesting a potential downside of 5.41%. Given PNM Resources’ higher possible upside, analysts plainly believe PNM Resources is more favorable than EDP-Energias de Portugal, S.A.
This table compares PNM Resources and EDP-Energias de Portugal, S.A’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EDP-Energias de Portugal, S.A||6.72%||7.81%||2.53%|
Valuation & Earnings
This table compares PNM Resources and EDP-Energias de Portugal, S.A’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PNM Resources||$1.45 billion||2.19||$80.40 million||$1.94||20.47|
|EDP-Energias de Portugal, S.A||$17.79 billion||0.74||$1.26 billion||N/A||N/A|
EDP-Energias de Portugal, S.A has higher revenue and earnings than PNM Resources.
EDP-Energias de Portugal, S.A beats PNM Resources on 8 of the 15 factors compared between the two stocks.
PNM Resources Company Profile
PNM Resources, Inc., through its subsidiaries, engages in the energy and energy-related businesses 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 is primarily involved in the generation, transmission, and distribution of electricity. It generates electricity using coal, natural gas and oil, nuclear fuel, solar, wind, and geothermal energy sources. As of December 31, 2017, this segment had owned or leased facilities with a total net generation capacity of 2,102 megawatts; and owned 3,200 miles of electric transmission lines, 6,063 miles of distribution overhead lines, 5,828 miles of underground distribution lines, and 254 substations. It also owns and leases office and other equipment, office space, vehicles, and real estate. The TNMP segment provides regulated transmission and distribution services. As of December 31, 2017, this segment owned 978 miles of overhead electric transmission lines, 7,111 miles of overhead distribution lines, 1,241 miles of underground distribution lines, and 116 substations. It also owns and leases vehicles, service facilities, and office locations throughout its service territory. The company serves approximately 773,000 residential, commercial, and industrial customers, as well as end-users of electricity in New Mexico and Texas. PNM Resources, Inc. was founded in 1917 and is headquartered in Albuquerque, New Mexico.
EDP-Energias de Portugal, S.A Company Profile
EDP – Energias de Portugal, S.A. generates, distributes, and supplies electricity in Portugal, Spain, France, Poland, Romania, Brazil, and the United States. It operates through Generation and Supply in Iberia, Regulated Networks in Iberia, EDP Renováveis, and EDP Brasil segments. The company primarily generates electricity through water, wind, sun, coal, natural gas, nuclear, and cogeneration sources. It also distributes and supplies gas. The company has an installed capacity of 25 GW. It serves approximately 9.8 million electricity customers and 1.5 million gas customers. In addition, the company offers services in various areas, such as engineering, laboratory tests, vocational training, energy services, and property management. EDP – Energias de Portugal, S.A. was founded in 1976 and is headquartered in Lisbon, Portugal.
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