PNM vs. OTTR, POR, IDA, HE, OGE, PNW, BKH, ELP, PAM, and ENIC
Should you be buying PNM Resources stock or one of its competitors? The main competitors of PNM Resources include Otter Tail (OTTR), Portland General Electric (POR), IDACORP (IDA), Hawaiian Electric Industries (HE), OGE Energy (OGE), Pinnacle West Capital (PNW), Black Hills (BKH), Companhia Paranaense de Energia - COPEL (ELP), Pampa Energía (PAM), and Enel Chile (ENIC). These companies are all part of the "electric services" industry.
Otter Tail (NASDAQ:OTTR) and PNM Resources (NYSE:PNM) are both mid-cap utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, media sentiment, risk, institutional ownership, valuation, dividends, earnings, community ranking and analyst recommendations.
Otter Tail has a net margin of 21.81% compared to Otter Tail's net margin of 4.54%. PNM Resources' return on equity of 21.64% beat Otter Tail's return on equity.
Otter Tail currently has a consensus target price of $68.00, suggesting a potential downside of 19.60%. PNM Resources has a consensus target price of $46.80, suggesting a potential upside of 28.85%. Given Otter Tail's stronger consensus rating and higher probable upside, analysts plainly believe PNM Resources is more favorable than Otter Tail.
In the previous week, Otter Tail had 1 more articles in the media than PNM Resources. MarketBeat recorded 6 mentions for Otter Tail and 5 mentions for PNM Resources. Otter Tail's average media sentiment score of 0.94 beat PNM Resources' score of 0.14 indicating that PNM Resources is being referred to more favorably in the news media.
Otter Tail has higher earnings, but lower revenue than PNM Resources. Otter Tail is trading at a lower price-to-earnings ratio than PNM Resources, indicating that it is currently the more affordable of the two stocks.
PNM Resources received 152 more outperform votes than Otter Tail when rated by MarketBeat users. Likewise, 60.63% of users gave PNM Resources an outperform vote while only 60.10% of users gave Otter Tail an outperform vote.
Otter Tail pays an annual dividend of $1.87 per share and has a dividend yield of 2.2%. PNM Resources pays an annual dividend of $1.55 per share and has a dividend yield of 4.3%. Otter Tail pays out 26.7% of its earnings in the form of a dividend. PNM Resources pays out 150.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Otter Tail has raised its dividend for 11 consecutive years and PNM Resources has raised its dividend for 13 consecutive years. PNM Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Otter Tail has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, PNM Resources has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.
61.3% of Otter Tail shares are owned by institutional investors. Comparatively, 91.7% of PNM Resources shares are owned by institutional investors. 2.3% of Otter Tail shares are owned by insiders. Comparatively, 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.
Summary
PNM Resources beats Otter Tail on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding PNM and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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