Head-To-Head Comparison: Redeia Corporacion (OTCMKTS:RDEIY) versus TXNM Energy (NYSE:TXNM)

Redeia Corporacion (OTCMKTS:RDEIY) and TXNM Energy (NYSE:TXNM) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redeia Corporacion	$1.73 billion	0.54	$398.69 million	N/A	N/A
TXNM Energy	$1.97 billion	3.22	$242.68 million	$1.71	34.09

Redeia Corporacion has higher earnings, but lower revenue than TXNM Energy.

Dividends

Redeia Corporacion pays an annual dividend of $0.43 per share and has a dividend yield of 5.0%. TXNM Energy pays an annual dividend of $1.63 per share and has a dividend yield of 2.8%. TXNM Energy pays out 95.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Redeia Corporacion has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.

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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Redeia Corporacion	N/A	N/A	N/A
TXNM Energy	8.67%	7.20%	1.84%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Redeia Corporacion and TXNM Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redeia Corporacion	1	4	0	2	2.43
TXNM Energy	0	6	2	0	2.25

TXNM Energy has a consensus target price of $58.42, indicating a potential upside of 0.21%. Given TXNM Energy’s higher possible upside, analysts clearly believe TXNM Energy is more favorable than Redeia Corporacion.

Summary

TXNM Energy beats Redeia Corporacion on 9 of the 15 factors compared between the two stocks.

About Redeia Corporacion

Redeia Corporación, S.A. engages in the electricity transmission, and system operation and management of the transmission network for the electricity system in Spain and internationally. The company operates through three segments: Management and Operation of National Electricity Infrastructure; Management and Operation of International Electricity Infrastructure; and Telecommunications (Satellites and Fibre Optic). Its transmission network comprises approximately 45,141 kilometres; and has 94,981 MVA of transformation capacity. The company also provides advisory, engineering, and construction services; and telecommunications, financing, reinsurance, line and substation maintenance, technical consultancy, and satellite telecommunications services. In addition, it manages and constructs energy storage facilities and the water cycle; acquires, holds, manages, and administers equity securities; operates satellite communications system and provides space segment services for the geostationary orbital slots; and sells and leases satellites and spatial capacity. The company was formerly known as Red Eléctrica Corporación, S.A. and changed its name to Redeia Corporación, S.A. in June 2023. Redeia Corporación, S.A. was incorporated in 1985 and is based in Alcobendas, Spain.

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.