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 better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, media sentiment, analyst recommendations, risk and community ranking.
PNM Resources has a consensus price target of $44.75, suggesting a potential upside of 16.26%. Given Otter Tail's higher probable upside, analysts plainly believe PNM Resources is more favorable than Otter Tail.
Otter Tail has a net margin of 22.55% compared to Otter Tail's net margin of 4.38%. PNM Resources' return on equity of 21.58% beat Otter Tail's return on equity.
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 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.
Otter Tail pays an annual dividend of $1.87 per share and has a dividend yield of 2.0%. PNM Resources pays an annual dividend of $1.55 per share and has a dividend yield of 4.0%. Otter Tail pays out 25.7% of its earnings in the form of a dividend. PNM Resources pays out 170.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Otter Tail has increased its dividend for 11 consecutive years and PNM Resources has increased 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, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, PNM Resources has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.
In the previous week, Otter Tail and Otter Tail both had 2 articles in the media. Otter Tail's average media sentiment score of 0.86 beat PNM Resources' score of 0.04 indicating that PNM Resources is being referred to more favorably in the news media.
61.3% of Otter Tail shares are held by institutional investors. Comparatively, 91.7% of PNM Resources shares are held by institutional investors. 2.3% of Otter Tail shares are held by insiders. Comparatively, 1.4% of PNM Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
PNM Resources beats Otter Tail on 10 of the 19 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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