Critical Comparison: TXNM Energy (NYSE:TXNM) and Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (NYSE:EDN)

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (NYSE:EDN) and TXNM Energy (NYSE:TXNM) are both mid-cap utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Risk and Volatility

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.

Institutional and Insider Ownership

1.6% of Empresa Distribuidora y Comercializadora Norte Sociedad Anónima shares are owned by institutional investors. Comparatively, 91.7% of TXNM Energy shares are owned by institutional investors. 1.4% of TXNM Energy shares are owned by company 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 Recommendations

This is a breakdown of current recommendations for Empresa Distribuidora y Comercializadora Norte Sociedad Anónima and TXNM Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima	0	0	0	0	0.00
TXNM Energy	0	1	3	0	2.75

TXNM Energy has a consensus target price of $50.25, indicating a potential upside of 2.47%. Given TXNM Energy’s stronger consensus rating and higher probable upside, analysts plainly believe TXNM Energy is more favorable than Empresa Distribuidora y Comercializadora Norte Sociedad Anónima.

Profitability

This table compares Empresa Distribuidora y Comercializadora Norte Sociedad Anónima and TXNM Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima	10.22%	18.97%	5.68%
TXNM Energy	9.26%	9.69%	2.26%

Earnings and Valuation

This table compares Empresa Distribuidora y Comercializadora Norte Sociedad Anónima and TXNM Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima	$2.67 billion	0.77	$183.81 million	$5.14	8.86
TXNM Energy	$1.94 billion	2.28	$88.35 million	$1.92	25.54

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima has higher revenue and earnings than TXNM Energy. Empresa Distribuidora y Comercializadora Norte Sociedad Anónima is trading at a lower price-to-earnings ratio than TXNM Energy, indicating that it is currently the more affordable of the two stocks.

About Empresa Distribuidora y Comercializadora Norte Sociedad Anónima

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima is involved in the distribution and sale of electricity in Argentina. The company was incorporated in 1992 and is based in Buenos Aires, Argentina. Empresa Distribuidora y Comercializadora Norte Sociedad Anónima operates as a subsidiary of Empresa de Energía del Cono Sur S.A..

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.