Financial Survey: TXNM Energy (NYSE:TXNM) and Ameresco (NYSE:AMRC)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ameresco	1.59%	3.33%	0.82%
TXNM Energy	6.96%	7.18%	2.05%

Risk and Volatility

Ameresco has a beta of 2.55, indicating that its stock price is 155% more volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Ameresco and TXNM Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameresco	2	3	7	0	2.42
TXNM Energy	0	6	1	0	2.14

Ameresco currently has a consensus price target of $42.11, indicating a potential upside of 27.57%. TXNM Energy has a consensus price target of $60.88, indicating a potential upside of 2.77%. Given Ameresco’s stronger consensus rating and higher probable upside, analysts clearly believe Ameresco is more favorable than TXNM Energy.

Insider and Institutional Ownership

99.2% of Ameresco shares are owned by institutional investors. Comparatively, 91.7% of TXNM Energy shares are owned by institutional investors. 45.0% of Ameresco shares are owned by company insiders. Comparatively, 1.1% of TXNM Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameresco	$1.98 billion	0.88	$44.28 million	$0.58	56.91
TXNM Energy	$2.17 billion	3.03	$151.89 million	$1.39	42.61

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

About Ameresco

Ameresco, Inc., a clean technology integrator, provides a portfolio of energy efficiency and renewable energy supply solutions in the United States, Canada, Europe, and internationally. It operates through U.S. Regions, U.S. Federal, Canada, Europe, Alternative Fuels, and All Other segments. The company offers energy efficiency, infrastructure upgrades, energy security and resilience, asset sustainability, and renewable energy solutions for businesses and organizations. It designs, develops, engineers, and installs projects that reduce the energy, as well as operations and maintenance (O&M) costs of its customers' facilities; and projects primarily include various measures customized for the facility and designed to enhance the efficiency of building systems, such as heating, ventilation, cooling, and lighting systems. In addition, the company offers renewable energy solutions and services, such as the construction of small-scale plants that the company owns or develops for customers that produce electricity, gas, heat, or cooling from renewable sources of energy and O&M services; and electricity, processed renewable gas fuel, and heat or cooling produced from renewable sources of energy. Further, the company sells photovoltaic (PV) solar energy products and systems, as well as provides consulting, and enterprise energy management services; and operates wind farms. It serves the federal, state, local governments, healthcare and educational institutions, airports, public housing authorities and public universities, municipal utilities, and commercial and industrial customers. As of December 31, 2023, the company owned and operated 185 small-scale renewable energy plants and solar PV installations. Ameresco, Inc. was incorporated in 2000 and is headquartered in Framingham, Massachusetts.

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.