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

Insider and Institutional Ownership

92.6% of PNM Resources shares are owned by institutional investors. 1.3% of PNM Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares PNM Resources and UNS Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PNM Resources $1.36 billion 2.65 $117.37 million $1.99 22.81
UNS Energy N/A N/A N/A N/A N/A

PNM Resources has higher revenue and earnings than UNS Energy.

Dividends

PNM Resources pays an annual dividend of $0.97 per share and has a dividend yield of 2.1%. UNS Energy does not pay a dividend. PNM Resources pays out 48.7% of its earnings in the form of a dividend. PNM Resources has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for PNM Resources and UNS Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PNM Resources 4 7 1 0 1.75
UNS Energy 0 0 0 0 N/A

PNM Resources presently has a consensus target price of $38.99, indicating a potential downside of 14.12%.

Profitability

This table compares PNM Resources and UNS Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PNM Resources 11.27% 9.18% 2.49%
UNS Energy N/A N/A N/A

Summary

PNM Resources beats UNS Energy on 9 of the 10 factors compared between the two stocks.

PNM Resources Company Profile

PNM Resources, Inc. (PNMR) is an investor-owned holding company with approximately two regulated utilities providing electricity and electric services in New Mexico and Texas. PNMR’s electric utilities are Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP). It operates in three segments: PNM, TNMP, and Corporate and Other. The Company, through its Website provides information, including news releases, notices of Webcasts, and filings. PNM is an electric utility that provides electric generation, transmission and distribution service to its rate-regulated customers. TNMP is a regulated utility operating in Texas. TNMP provides transmission and distribution services in Texas under the provisions of Texas Electric Choice Act (TECA) and the Texas Public Utility Regulatory Act. The Corporate and Other segment includes PNMR holding company activities, related to corporate level debt and PNMR Services Company.

UNS Energy Company Profile

UNS Energy Corporation, formerly UniSource Energy Corporation, is a holding company. The Company owns the outstanding common stock of Tucson Electric Power Company (TEP), UniSource Energy Services, Inc. (UES), UniSource Energy Development Company (UED), and Millennium Energy Holdings, Inc. (Millennium). It operates in three segments: TEP, UNS Gas, Inc. (UNS Gas) and UNS Electric, Inc. (UNS Electric). TEP is an electric utility serving the community of Tucson, Arizona. UNS Gas is a gas distribution company serving approximately 148,000 retail customers in Mohave, Yavapai, Coconino, and Navajo counties in northern Arizona, as well as Santa Cruz County in southeastern Arizona. UNS Electric is a vertically integrated electric utility company serving approximately 91,000 retail customers in Mohave and Santa Cruz counties. In July 2011, UNS Electric purchased the Black Mountain Generating Station (BMGS) from UED.

Receive News & Ratings for PNM Resources Inc. (Holding Co.) Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PNM Resources Inc. (Holding Co.) and related companies with MarketBeat.com's FREE daily email newsletter.