TXNM Energy (NYSE:TXNM) versus XPLR Infrastructure (NYSE:XIFR) Head-To-Head Analysis

TXNM Energy (NYSE:TXNM) and XPLR Infrastructure (NYSE:XIFR) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Insider and Institutional Ownership

91.7% of TXNM Energy shares are held by institutional investors. Comparatively, 66.0% of XPLR Infrastructure shares are held by institutional investors. 1.4% of TXNM Energy shares are held by insiders. Comparatively, 0.1% of XPLR Infrastructure shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for TXNM Energy and XPLR Infrastructure, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	2	4	0	2.67
XPLR Infrastructure	2	14	2	0	2.00

TXNM Energy currently has a consensus target price of $52.33, suggesting a potential upside of 4.24%. XPLR Infrastructure has a consensus target price of $20.27, suggesting a potential upside of 139.84%. Given XPLR Infrastructure’s higher possible upside, analysts plainly believe XPLR Infrastructure is more favorable than TXNM Energy.

Valuation & Earnings

This table compares TXNM Energy and XPLR Infrastructure”s top-line 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	2.34	$88.35 million	$1.92	26.15
XPLR Infrastructure	$1.23 billion	0.64	-$10.00 million	($0.10)	-84.50

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

Volatility and Risk

TXNM Energy has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, XPLR Infrastructure has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TXNM Energy	9.26%	9.69%	2.26%
XPLR Infrastructure	-0.73%	1.34%	0.85%

Dividends

TXNM Energy pays an annual dividend of $1.63 per share and has a dividend yield of 3.2%. XPLR Infrastructure pays an annual dividend of $3.67 per share and has a dividend yield of 43.4%. TXNM Energy pays out 84.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. XPLR Infrastructure pays out -3,670.0% of its earnings in the form of a dividend. XPLR Infrastructure is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

TXNM Energy beats XPLR Infrastructure 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 XPLR Infrastructure

XPLR Infrastructure LP engages in the acquisition, management, and ownership of contracted clean energy projects with long-term cash flows. It owns interests in wind and solar projects in North America and natural gas infrastructure assets in Texas. The company was founded on March 6, 2014 and is headquartered in Juno Beach, FL.