Comparing Alvopetro Energy (OTCMKTS:ALVOF) and TXNM Energy (NYSE:TXNM)

TXNM Energy (NYSE:TXNM) and Alvopetro Energy (OTCMKTS:ALVOF) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Risk & Volatility

TXNM Energy has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500. Comparatively, Alvopetro Energy has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TXNM Energy	8.67%	7.20%	1.84%
Alvopetro Energy	37.69%	22.24%	17.66%

Dividends

TXNM Energy pays an annual dividend of $1.63 per share and has a dividend yield of 2.8%. Alvopetro Energy pays an annual dividend of $0.40 per share and has a dividend yield of 7.7%. TXNM Energy pays out 95.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alvopetro Energy pays out 76.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alvopetro Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares TXNM Energy and Alvopetro Energy”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	$1.97 billion	3.27	$242.68 million	$1.71	34.62
Alvopetro Energy	$45.52 million	4.19	$16.30 million	$0.52	9.98

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

Analyst Ratings

This is a summary of current recommendations and price targets for TXNM Energy and Alvopetro Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	6	2	0	2.25
Alvopetro Energy	0	1	0	0	2.00

TXNM Energy currently has a consensus target price of $58.42, indicating a potential downside of 1.33%. Given TXNM Energy’s stronger consensus rating and higher possible upside, analysts clearly believe TXNM Energy is more favorable than Alvopetro Energy.

Insider and Institutional 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 company is poised for long-term growth.

Summary

TXNM Energy beats Alvopetro Energy on 10 of the 16 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 Alvopetro Energy

Alvopetro Energy Ltd. operates as an independent upstream and midstream operator. It engages in the acquisition, exploration, development, and production of hydrocarbons. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy Ltd. was incorporated in 2013 and is headquartered in Calgary, Canada.