Contrasting TXNM Energy (NYSE:TXNM) & Centrica (OTCMKTS:CPYYY)

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

Volatility & Risk

Centrica has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centrica	$28.63 billion	0.28	$4.89 billion	N/A	N/A
TXNM Energy	$1.94 billion	2.13	$88.35 million	$1.92	23.86

Centrica has higher revenue and earnings than TXNM Energy.

Dividends

Centrica pays an annual dividend of $0.13 per share and has a dividend yield of 2.1%. TXNM Energy pays an annual dividend of $1.55 per share and has a dividend yield of 3.4%. TXNM Energy pays out 80.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of current ratings and price targets for Centrica and TXNM Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centrica	0	0	2	2	3.50
TXNM Energy	0	1	3	0	2.75

TXNM Energy has a consensus target price of $47.75, indicating a potential upside of 4.23%. Given TXNM Energy’s higher probable upside, analysts plainly believe TXNM Energy is more favorable than Centrica.

Institutional and Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Centrica	N/A	N/A	N/A
TXNM Energy	9.26%	9.69%	2.26%

Summary

TXNM Energy beats Centrica on 9 of the 15 factors compared between the two stocks.

About Centrica

Centrica plc operates as an integrated energy company in the United Kingdom, Ireland, Scandinavia, North America, and internationally. The company operates through British Gas Services & Solutions, British Gas Energy, Centrica Business Solutions, Bord Gáis Energy, Centrica Energy, and Upstream segments. It supplies gas and electricity to residential, commercial, industrial customers, and small businesses, as well as offers energy-related services; and generates power from nuclear assets. The company also provides installation, repair, and maintenance services for central heating, ventilation, and air conditioning systems, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; procurement and sale of LNG; development and operation of large-scale power assets; building of solar farm and connecting to grid; and supply of energy efficiency solutions and technologies. Further, the company produces and processes gas and oil; constructs, owns, and exploits infrastructure; offers central heating, boiler and controls, plumbing and drains, and electrical appliance insurance covers; and engages in the social enterprise investment fund activities. Additionally, it provides metering assets and services, vehicle leasing, and energy management products and services; constructs battery storage and gas peakers; and operates a gas storage and franchise network. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was founded in 1812 and is based in Windsor, the United Kingdom.

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.