Financial Contrast: Cheniere Energy Partners (NYSE:CQP) vs. TXNM Energy (NYSE:TXNM)

TXNM Energy (NYSE:TXNM) and Cheniere Energy Partners (NYSE:CQP) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Risk & Volatility

TXNM Energy has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, Cheniere Energy Partners has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Profitability

This table compares TXNM Energy and Cheniere Energy Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TXNM Energy	8.67%	7.20%	1.84%
Cheniere Energy Partners	22.54%	-591.00%	13.64%

Earnings & Valuation

This table compares TXNM Energy and Cheniere Energy Partners”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXNM Energy	$1.97 billion	3.26	$242.68 million	$1.71	34.47
Cheniere Energy Partners	$8.70 billion	2.95	$2.51 billion	$3.84	13.79

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

Dividends

TXNM Energy pays an annual dividend of $1.63 per share and has a dividend yield of 2.8%. Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 5.9%. 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. Cheniere Energy Partners 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. Cheniere Energy Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

91.7% of TXNM Energy shares are held by institutional investors. Comparatively, 46.6% of Cheniere Energy Partners shares are held by institutional investors. 1.3% of TXNM Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for TXNM Energy and Cheniere Energy Partners, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	6	2	0	2.25
Cheniere Energy Partners	5	1	0	0	1.17

TXNM Energy currently has a consensus price target of $58.42, suggesting a potential downside of 0.88%. Cheniere Energy Partners has a consensus price target of $54.20, suggesting a potential upside of 2.34%. Given Cheniere Energy Partners’ higher probable upside, analysts clearly believe Cheniere Energy Partners is more favorable than TXNM Energy.

Summary

Cheniere Energy Partners beats TXNM Energy on 9 of the 16 factors compared between the two stocks.

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 Cheniere Energy Partners

Cheniere Energy Partners, L.P., through its subsidiaries, provides liquefied natural gas (LNG) to integrated energy companies, utilities, and energy trading companies worldwide. The company owns and operates natural gas liquefaction and export facility at the Sabine Pass LNG Terminal located in Cameron Parish, Louisiana. It also owns a natural gas supply pipeline that interconnects the Sabine Pass LNG terminal with various interstate pipelines. The company was founded in 2003 and is headquartered in Houston, Texas. Cheniere Energy Partners, L.P. is a subsidiary of Cheniere Energy, Inc.