Analyzing AK PWR & TEL CO/SH SH (OTCMKTS:APTL) and PNM Resources (OTCMKTS:PNM)

AK PWR & TEL CO/SH SH (OTCMKTS:APTL) and PNM Resources (NYSE:PNM) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Earnings and Valuation

This table compares AK PWR & TEL CO/SH SH and PNM Resources’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AK PWR & TEL CO/SH SH N/A N/A N/A N/A N/A
PNM Resources $1.44 billion 2.86 $86.17 million $2.00 25.82



PNM Resources has higher revenue and earnings than AK PWR & TEL CO/SH SH.

Analyst Recommendations

This is a summary of current ratings and target prices for AK PWR & TEL CO/SH SH and PNM Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AK PWR & TEL CO/SH SH 0 0 0 0 N/A
PNM Resources 2 3 1 0 1.83

PNM Resources has a consensus target price of $48.13, suggesting a potential downside of 6.80%. Given PNM Resources’ higher probable upside, analysts clearly believe PNM Resources is more favorable than AK PWR & TEL CO/SH SH.

Profitability

This table compares AK PWR & TEL CO/SH SH and PNM Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AK PWR & TEL CO/SH SH N/A N/A N/A
PNM Resources 6.10% 8.68% 2.23%

Institutional and Insider Ownership

90.2% of PNM Resources shares are held by institutional investors. 1.2% of PNM Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

AK PWR & TEL CO/SH SH has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, PNM Resources has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.

Dividends

AK PWR & TEL CO/SH SH pays an annual dividend of $1.92 per share and has a dividend yield of 3.1%. PNM Resources pays an annual dividend of $1.16 per share and has a dividend yield of 2.2%. PNM Resources pays out 58.0% of its earnings in the form of a dividend. PNM Resources has increased its dividend for 7 consecutive years.

Summary

PNM Resources beats AK PWR & TEL CO/SH SH on 10 of the 12 factors compared between the two stocks.

About AK PWR & TEL CO/SH SH

Alaska Power & Telephone Company, through its subsidiaries, provides regulated electric and telephone services in rural portions of Alaska. It operates through Electric and Telecommunications segments. The Electric segment offers retail and wholesale electric services, including hydroelectric and diesel generation facilities. The Telecommunications segment provides local telephone services. The company also offers broadband, Internet, wireless, long distance, and engineering services. Alaska Power & Telephone Company was founded in 1957 and is based in Port Townsend, Washington.

About PNM Resources

PNM Resources, Inc., through its subsidiaries, engages in the energy and energy-related businesses 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 is primarily involved in the generation, transmission, and distribution of electricity. It generates electricity using coal, natural gas and oil, nuclear fuel, solar, wind, and geothermal energy sources. As of December 31, 2018, this segment had owned or leased facilities with a total net generation capacity of 2,102 megawatts; and owned 3,206 miles of electric transmission lines, 6,067 miles of distribution overhead lines, 5,885 miles of underground distribution lines, and 255 substations. It also owns and leases office and other equipment, office space, vehicles, and real estate. The TNMP segment provides regulated transmission and distribution services. As of December 31, 2018, this segment owned 997 miles of overhead electric transmission lines, 7,151 miles of overhead distribution lines, 1,260 miles of underground distribution lines, and 122 substations. It also owns and leases vehicles, service facilities, and office locations throughout its service territory. The company serves approximately 782,000 residential, commercial, and industrial customers, as well as end-users of electricity in New Mexico and Texas. PNM Resources, Inc. was founded in 1917 and is headquartered in Albuquerque, New Mexico.

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