Financial Comparison: EDP – Energias de Portugal (OTCMKTS:EDPFY) & TXNM Energy (NYSE:TXNM)

TXNM Energy (NYSE:TXNM) and EDP – Energias de Portugal (OTCMKTS:EDPFY) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for TXNM Energy and EDP – Energias de Portugal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	2	3	0	2.60
EDP – Energias de Portugal	0	1	0	1	3.00

TXNM Energy presently has a consensus price target of $52.00, indicating a potential upside of 7.24%. Given TXNM Energy’s higher probable upside, equities research analysts plainly believe TXNM Energy is more favorable than EDP – Energias de Portugal.

Dividends

TXNM Energy pays an annual dividend of $1.55 per share and has a dividend yield of 3.2%. EDP – Energias de Portugal pays an annual dividend of $1.32 per share and has a dividend yield of 4.2%. 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.

Profitability

This table compares TXNM Energy and EDP – Energias de Portugal’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%
EDP – Energias de Portugal	N/A	N/A	N/A

Volatility & Risk

TXNM Energy has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, EDP – Energias de Portugal has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Insider and Institutional Ownership

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

Valuation and Earnings

This table compares TXNM Energy and EDP – Energias de Portugal”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	$1.94 billion	2.26	$88.35 million	$1.92	25.26
EDP – Energias de Portugal	$21.76 billion	N/A	$715.52 million	N/A	N/A

EDP – Energias de Portugal has higher revenue and earnings than TXNM Energy.

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 EDP – Energias de Portugal

EDP – Energias de Portugal, S.A. engages in the generation, transmission, distribution, and supply of electricity in Portugal, Spain, France, Poland, Romania, Italy, Belgium, the United Kingdom, Greece, Colombia, Brazil, North America, and internationally. It operates through Renewables, Networks, and Client Solutions & Energy Management segments. The company primarily generates and sells electricity through hydro, CCGT, coal, wind, solar, nuclear, and cogeneration and waste sources. It has an installed capacity of 28 GW; and operates 380,788 kilometers of distribution network lines. The company is also involved in the supply of natural gas. In addition, it offers engineering, laboratory tests, professional training, and energy services, as well as property management services. The company's electricity and gas customers include domestic, industrial, commercial, agricultural, and others. The company was incorporated in 1976 and is headquartered in Lisbon, Portugal.