Head-To-Head Contrast: CEMIG (NYSE:CIG) versus TXNM Energy (NYSE:TXNM)

TXNM Energy (NYSE:TXNM) and CEMIG (NYSE:CIG) are both mid-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Volatility & Risk

TXNM Energy has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, CEMIG has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Dividends

TXNM Energy pays an annual dividend of $1.55 per share and has a dividend yield of 3.2%. CEMIG pays an annual dividend of $0.17 per share and has a dividend yield of 8.9%. TXNM Energy pays out 80.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CEMIG pays out 40.5% of its earnings in the form of a dividend. CEMIG is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TXNM Energy	9.26%	9.69%	2.26%
CEMIG	15.70%	21.49%	9.64%

Valuation and Earnings

This table compares TXNM Energy and CEMIG”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXNM Energy	$1.94 billion	2.25	$88.35 million	$1.92	25.21
CEMIG	$37.75 billion	0.14	$1.15 billion	$0.42	4.52

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

Institutional and Insider Ownership

91.7% of TXNM Energy shares are owned by institutional investors. 1.4% of TXNM Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for TXNM Energy and CEMIG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	1	3	0	2.75
CEMIG	0	1	0	0	2.00

TXNM Energy currently has a consensus price target of $50.25, suggesting a potential upside of 3.80%. Given TXNM Energy’s stronger consensus rating and higher probable upside, research analysts plainly believe TXNM Energy is more favorable than CEMIG.

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 CEMIG

Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.