Head to Head Contrast: Genie Energy (NYSE:GNE) and TXNM Energy (NYSE:TXNM)

Genie Energy (NYSE:GNE) and TXNM Energy (NYSE:TXNM) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Analyst Ratings

This is a summary of current ratings and target prices for Genie Energy and TXNM Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genie Energy	0	2	0	0	2.00
TXNM Energy	0	1	1	0	2.50

TXNM Energy has a consensus price target of $61.25, indicating a potential upside of 4.57%. Given TXNM Energy’s stronger consensus rating and higher probable upside, analysts clearly believe TXNM Energy is more favorable than Genie Energy.

Risk and Volatility

Genie Energy has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Genie Energy	5.05%	12.80%	7.82%
TXNM Energy	9.04%	8.11%	2.34%

Earnings & Valuation

This table compares Genie Energy and TXNM Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genie Energy	$501.97 million	0.89	$24.01 million	$0.81	20.88
TXNM Energy	$2.17 billion	2.98	$151.89 million	$1.81	32.36

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

Insider & Institutional Ownership

49.1% of Genie Energy shares are held by institutional investors. Comparatively, 91.7% of TXNM Energy shares are held by institutional investors. 18.5% of Genie Energy shares are held by insiders. Comparatively, 1.1% 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 will outperform the market over the long term.

Dividends

Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. TXNM Energy pays an annual dividend of $1.69 per share and has a dividend yield of 2.9%. Genie Energy pays out 37.0% of its earnings in the form of a dividend. TXNM Energy pays out 93.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

TXNM Energy beats Genie Energy on 11 of the 15 factors compared between the two stocks.

About Genie Energy

Genie Energy Ltd., through its subsidiaries, engages in the supply of electricity and natural gas to residential and small business customers in the United States and internationally. It operates in two segments, GRE and Genie Renewables. The company also develops, constructs, and operates solar energy projects for commercial and industrial customers, as well as its own portfolio; provides energy brokerage and advisory services; markets community solar energy solutions; and manufactures and distributes solar panel, as well as engages in solar installation design and project management activities. Genie Energy Ltd. was incorporated in 2011 and is headquartered in Newark, New Jersey.

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.