Head-To-Head Contrast: Spark Energy (SPKE) vs. PNM Resources, Inc. (Holding Co.) (PNM)
Spark Energy (NASDAQ: SPKE) and PNM Resources, Inc. (Holding Co.) (NYSE:PNM) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.
Earnings and Valuation
This table compares Spark Energy and PNM Resources, Inc. (Holding Co.)’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Spark Energy||$546.70 million||0.75||$14.44 million||$0.81||14.69|
|PNM Resources, Inc. (Holding Co.)||$1.36 billion||2.62||$117.37 million||$1.99||22.49|
PNM Resources, Inc. (Holding Co.) has higher revenue and earnings than Spark Energy. Spark Energy is trading at a lower price-to-earnings ratio than PNM Resources, Inc. (Holding Co.), indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Spark Energy has a beta of -1.61, meaning that its stock price is 261% less volatile than the S&P 500. Comparatively, PNM Resources, Inc. (Holding Co.) has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.
Insider and Institutional Ownership
35.8% of Spark Energy shares are owned by institutional investors. Comparatively, 92.7% of PNM Resources, Inc. (Holding Co.) shares are owned by institutional investors. 66.9% of Spark Energy shares are owned by company insiders. Comparatively, 1.3% of PNM Resources, Inc. (Holding Co.) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Spark Energy and PNM Resources, Inc. (Holding Co.)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PNM Resources, Inc. (Holding Co.)||11.27%||9.18%||2.49%|
This is a summary of recent recommendations for Spark Energy and PNM Resources, Inc. (Holding Co.), as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PNM Resources, Inc. (Holding Co.)||4||7||1||0||1.75|
Spark Energy currently has a consensus target price of $22.08, indicating a potential upside of 85.57%. PNM Resources, Inc. (Holding Co.) has a consensus target price of $38.99, indicating a potential downside of 12.87%. Given Spark Energy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Spark Energy is more favorable than PNM Resources, Inc. (Holding Co.).
Spark Energy pays an annual dividend of $0.73 per share and has a dividend yield of 6.1%. PNM Resources, Inc. (Holding Co.) pays an annual dividend of $0.97 per share and has a dividend yield of 2.2%. Spark Energy pays out 90.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PNM Resources, Inc. (Holding Co.) pays out 48.7% of its earnings in the form of a dividend. PNM Resources, Inc. (Holding Co.) has raised its dividend for 5 consecutive years.
PNM Resources, Inc. (Holding Co.) beats Spark Energy on 10 of the 17 factors compared between the two stocks.
About Spark Energy
Spark Energy, Inc. is an independent retail energy services company. The Company provides residential and commercial customers across the United States with an alternative choice for their natural gas and electricity. The Company operates through two segments: Retail Natural Gas Segment and Retail Electricity Segment. The Retail Natural Gas segment consists of natural gas sales to, and natural gas transportation and distribution for, residential and commercial customers. It purchases natural gas supply through physical and financial transactions with market counterparts and supplies natural gas to residential and commercial consumers pursuant to fixed-price and variable-price. The Retail Electricity segment consists of electricity sales and transmission to residential and commercial customers. The Company has approximately 774,000 renewable energy credits (RCEs). As of July 5, 2017, the Company operates in 94 utility service territories across 19 states and the District of Columbia.
About PNM Resources, Inc. (Holding Co.)
PNM Resources, Inc. (PNMR) is an investor-owned holding company with approximately two regulated utilities providing electricity and electric services in New Mexico and Texas. PNMR’s electric utilities are Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP). It operates in three segments: PNM, TNMP, and Corporate and Other. The Company, through its Website provides information, including news releases, notices of Webcasts, and filings. PNM is an electric utility that provides electric generation, transmission and distribution service to its rate-regulated customers. TNMP is a regulated utility operating in Texas. TNMP provides transmission and distribution services in Texas under the provisions of Texas Electric Choice Act (TECA) and the Texas Public Utility Regulatory Act. The Corporate and Other segment includes PNMR holding company activities, related to corporate level debt and PNMR Services Company.
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