PNM Resources (NYSE: PNM) is one of 81 public companies in the “Electric Utilities” industry, but how does it weigh in compared to its competitors? We will compare PNM Resources to similar businesses based on the strength of its earnings, analyst recommendations, risk, dividends, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of current ratings and price targets for PNM Resources and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PNM Resources 4 7 1 0 1.75
PNM Resources Competitors 533 2939 2378 43 2.33

PNM Resources presently has a consensus target price of $38.99, indicating a potential downside of 14.12%. As a group, “Electric Utilities” companies have a potential upside of 7.52%. Given PNM Resources’ competitors stronger consensus rating and higher possible upside, analysts clearly believe PNM Resources has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

92.6% of PNM Resources shares are held by institutional investors. Comparatively, 65.6% of shares of all “Electric Utilities” companies are held by institutional investors. 1.3% of PNM Resources shares are held by insiders. Comparatively, 2.7% of shares of all “Electric Utilities” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

PNM Resources pays an annual dividend of $0.97 per share and has a dividend yield of 2.1%. PNM Resources pays out 48.7% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 58.0% of their earnings in the form of a dividend. PNM Resources has increased its dividend for 5 consecutive years.

Profitability

This table compares PNM Resources and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PNM Resources 11.27% 9.18% 2.49%
PNM Resources Competitors -10.18% 9.37% 2.56%

Earnings & Valuation

This table compares PNM Resources and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PNM Resources $1.36 billion $117.37 million 22.81
PNM Resources Competitors $7.66 billion $831.80 million 50.45

PNM Resources’ competitors have higher revenue and earnings than PNM Resources. PNM Resources is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

PNM Resources has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, PNM Resources’ competitors have a beta of 0.63, suggesting that their average share price is 37% less volatile than the S&P 500.

Summary

PNM Resources competitors beat PNM Resources on 12 of the 15 factors compared.

About PNM Resources

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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