TXNM Energy (NYSE:TXNM) and IDACORP (NYSE:IDA) Head-To-Head Contrast

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

Insider & Institutional Ownership

89.1% of IDACORP shares are owned by institutional investors. Comparatively, 91.7% of TXNM Energy shares are owned by institutional investors. 0.5% of IDACORP shares are owned by insiders. Comparatively, 1.4% of TXNM Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares IDACORP and TXNM Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IDACORP	$1.82 billion	2.95	$261.20 million	$4.98	20.30
TXNM Energy	$1.84 billion	2.11	$88.35 million	$0.91	47.45

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

Risk & Volatility

IDACORP has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for IDACORP and TXNM Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IDACORP	0	7	0	0	2.00
TXNM Energy	0	1	1	0	2.50

IDACORP presently has a consensus price target of $103.57, indicating a potential upside of 2.45%. TXNM Energy has a consensus price target of $48.00, indicating a potential upside of 11.16%. Given TXNM Energy’s stronger consensus rating and higher probable upside, analysts plainly believe TXNM Energy is more favorable than IDACORP.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IDACORP	15.04%	9.16%	3.25%
TXNM Energy	4.50%	10.15%	2.36%

Dividends

IDACORP pays an annual dividend of $3.32 per share and has a dividend yield of 3.3%. TXNM Energy pays an annual dividend of $1.55 per share and has a dividend yield of 3.6%. IDACORP pays out 66.7% of its earnings in the form of a dividend. 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. IDACORP has raised its dividend for 12 consecutive years.

Summary

TXNM Energy beats IDACORP on 9 of the 17 factors compared between the two stocks.

About IDACORP

IDACORP, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, purchase, and sale of electric energy in the United States. The company operates 17 hydropower generating plants located in southern Idaho and eastern Oregon; three natural gas-fired plants in southern Idaho; and interests in two coal-fired steam electric generating plants located in Wyoming and Nevada. As of December 31, 2023, it had approximately 4,762 pole-miles of high-voltage transmission lines; 23 step-up transmission substations located at power plants; 21 transmission substations; 11 switching stations; 30 mixed-use transmission and distribution substations; 186 energized distribution substations; and 29,714 pole-miles of distribution lines, and 131 MW of battery storage, as well as provides electric utility services to approximately 633,000 retail customers in southern Idaho and eastern Oregon. The company serves commercial and industrial customers, which involved in food processing, electronics and general manufacturing, agriculture, health care, government, and education. It also invests in housing and other real estate tax credit investments. IDACORP, Inc. was founded in 1915 and is headquartered in Boise, Idaho.

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.