Alaska Power & Telephone (OTCMKTS:APTL) & TXNM Energy (NYSE:TXNM) Critical Analysis

Alaska Power & Telephone (OTCMKTS:APTL) and TXNM Energy (NYSE:TXNM) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Dividends

Alaska Power & Telephone pays an annual dividend of $1.57 per share and has a dividend yield of 2.9%. TXNM Energy pays an annual dividend of $1.55 per share and has a dividend yield of 3.5%. Alaska Power & Telephone pays out 26.7% of its earnings in the form of a dividend. TXNM Energy pays out 170.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Alaska Power & Telephone and TXNM Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alaska Power & Telephone	0	0	0	0	N/A
TXNM Energy	0	1	3	0	2.75

TXNM Energy has a consensus target price of $47.75, indicating a potential upside of 6.73%. Given TXNM Energy’s higher probable upside, analysts plainly believe TXNM Energy is more favorable than Alaska Power & Telephone.

Profitability

This table compares Alaska Power & Telephone and TXNM Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alaska Power & Telephone	10.95%	N/A	N/A
TXNM Energy	4.50%	10.15%	2.36%

Valuation & Earnings

This table compares Alaska Power & Telephone and TXNM Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alaska Power & Telephone	$64.21 million	1.00	$6.15 million	$5.88	9.08
TXNM Energy	$1.94 billion	2.08	$88.35 million	$0.91	49.17

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

Volatility & Risk

Alaska Power & Telephone has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.

Summary

TXNM Energy beats Alaska Power & Telephone on 11 of the 15 factors compared between the two stocks.

About Alaska Power & Telephone

Alaska Power & Telephone Company provides energy, telecommunications, and broadband services to the residents, businesses, and communities of rural Alaska. The company operates through Energy and Telecom divisions. It generates energy using hydro and fossil-fuels. In addition, the company provides voice, as well as broadband services. Alaska Power & Telephone Company was founded in 1957 and is headquartered in Ketchikan, Washington.

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.