Analyzing Pacific Gas & Electric (NYSE:PCG) and TXNM Energy (NYSE:TXNM)

TXNM Energy (NYSE:TXNM) and Pacific Gas & Electric (NYSE:PCG) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Dividends

TXNM Energy pays an annual dividend of $1.69 per share and has a dividend yield of 2.9%. Pacific Gas & Electric pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. TXNM Energy pays out 93.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pacific Gas & Electric pays out 14.8% of its earnings in the form of a dividend. Pacific Gas & Electric has increased its dividend for 1 consecutive years.

Institutional & Insider Ownership

91.7% of TXNM Energy shares are owned by institutional investors. Comparatively, 78.6% of Pacific Gas & Electric shares are owned by institutional investors. 1.1% of TXNM Energy shares are owned by company insiders. Comparatively, 0.2% of Pacific Gas & Electric shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for TXNM Energy and Pacific Gas & Electric, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	0	1	0	3.00
Pacific Gas & Electric	0	9	7	0	2.44

Pacific Gas & Electric has a consensus target price of $17.14, suggesting a potential upside of 32.37%. Given Pacific Gas & Electric’s higher possible upside, analysts clearly believe Pacific Gas & Electric is more favorable than TXNM Energy.

Volatility and Risk

TXNM Energy has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, Pacific Gas & Electric has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Profitability

This table compares TXNM Energy and Pacific Gas & Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TXNM Energy	9.04%	8.11%	2.34%
Pacific Gas & Electric	12.00%	11.49%	2.57%

Earnings and Valuation

This table compares TXNM Energy and Pacific Gas & Electric”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXNM Energy	$2.17 billion	2.98	$151.89 million	$1.81	32.38
Pacific Gas & Electric	$24.93 billion	1.39	$2.70 billion	$1.35	9.59

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

Summary

Pacific Gas & Electric beats TXNM Energy on 10 of the 17 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 Pacific Gas & Electric

PG&E Corp. operates as a holding company, which engages in generation, transmission, and distribution of electricity and natural gas to customers. It specializes in energy, utility, power, gas, electricity, solar and sustainability. The company was founded in 1995 and is headquartered in Oakland, CA.