Critical Comparison: Alaska Power & Telephone (OTCMKTS:APTL) and TXNM Energy (NYSE:TXNM)

TXNM Energy (NYSE:TXNM) and Alaska Power & Telephone (OTCMKTS:APTL) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Dividends

TXNM Energy pays an annual dividend of $1.55 per share and has a dividend yield of 3.5%. Alaska Power & Telephone pays an annual dividend of $1.57 per share and has a dividend yield of 2.9%. TXNM Energy pays out 170.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alaska Power & Telephone pays out 26.7% of its earnings in the form of a dividend.

Profitability

This table compares TXNM Energy and Alaska Power & Telephone’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TXNM Energy	4.50%	10.15%	2.36%
Alaska Power & Telephone	10.95%	N/A	N/A

Insider & Institutional Ownership

91.7% of TXNM Energy shares are held by institutional investors. 1.4% of TXNM Energy shares 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for TXNM Energy and Alaska Power & Telephone, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	1	3	0	2.75
Alaska Power & Telephone	0	0	0	0	N/A

TXNM Energy presently has a consensus price target of $47.75, suggesting a potential upside of 6.73%. Given TXNM Energy’s higher possible upside, research analysts plainly believe TXNM Energy is more favorable than Alaska Power & Telephone.

Risk & Volatility

TXNM Energy has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Alaska Power & Telephone has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Valuation and Earnings

This table compares TXNM Energy and Alaska Power & Telephone”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXNM Energy	$1.94 billion	2.08	$88.35 million	$0.91	49.17
Alaska Power & Telephone	$64.21 million	1.00	$6.15 million	$5.88	9.08

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

Summary

TXNM Energy beats Alaska Power & Telephone on 11 of the 15 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 Alaska Power & Telephone

Alaska Power & Telephone Company provides energy, telecommunications, and broadband services to the residents, businesses, and communities of rural Alaska. The company operates through Energy and Telecom divisions. It generates energy using hydro and fossil-fuels. In addition, the company provides voice, as well as broadband services. Alaska Power & Telephone Company was founded in 1957 and is headquartered in Ketchikan, Washington.