TXNM Energy (NYSE:TXNM) versus Oklo (NYSE:OKLO) Critical Review

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

Volatility and Risk

Oklo has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oklo	N/A	-12.30%	-11.64%
TXNM Energy	8.67%	7.20%	1.84%

Earnings & Valuation

This table compares Oklo and TXNM Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oklo	N/A	N/A	-$73.62 million	($0.54)	-127.69
TXNM Energy	$1.97 billion	3.27	$242.68 million	$1.71	34.60

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

Institutional & Insider Ownership

85.0% of Oklo shares are held by institutional investors. Comparatively, 91.7% of TXNM Energy shares are held by institutional investors. 18.9% of Oklo shares are held by company insiders. Comparatively, 1.3% 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 will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Oklo and TXNM Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oklo	3	5	9	2	2.53
TXNM Energy	0	6	1	0	2.14

Oklo presently has a consensus target price of $98.93, suggesting a potential upside of 43.49%. TXNM Energy has a consensus target price of $59.30, suggesting a potential upside of 0.22%. Given Oklo’s stronger consensus rating and higher probable upside, research analysts clearly believe Oklo is more favorable than TXNM Energy.

Summary

TXNM Energy beats Oklo on 8 of the 14 factors compared between the two stocks.

About Oklo

Oklo Inc. designs and develops fission power plants to provide reliable and commercial-scale energy to customers in the United States. It also provides used nuclear fuel recycling services. The company was founded in 2013 and is based in Santa Clara, California.

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.