CLP (OTCMKTS:CLPHY – Get Free Report) and PNM Resources (NYSE:PNM – Get Free Report) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.
Volatility & Risk
CLP has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, PNM Resources has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.
Profitability
This table compares CLP and PNM Resources’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
CLP | N/A | N/A | N/A |
PNM Resources | 4.50% | 10.15% | 2.36% |
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
CLP | 0 | 0 | 0 | 0 | N/A |
PNM Resources | 0 | 3 | 2 | 0 | 2.40 |
PNM Resources has a consensus price target of $44.20, indicating a potential upside of ∞. Given PNM Resources’ higher probable upside, analysts plainly believe PNM Resources is more favorable than CLP.
Earnings & Valuation
This table compares CLP and PNM Resources’ revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
CLP | $11.13 billion | 2.06 | $850.02 million | N/A | N/A |
PNM Resources | $1.84 billion | 0.00 | $88.35 million | $0.91 | N/A |
CLP has higher revenue and earnings than PNM Resources.
Insider & Institutional Ownership
91.7% of PNM Resources shares are owned by institutional investors. 1.4% of PNM Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Dividends
CLP pays an annual dividend of $0.29 per share and has a dividend yield of 3.2%. PNM Resources pays an annual dividend of $1.55 per share. 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. PNM Resources has increased its dividend for 13 consecutive years.
Summary
PNM Resources beats CLP on 8 of the 13 factors compared between the two stocks.
About CLP
CLP Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, Mainland China, India Thailand, Taiwan, and Australia. The company generates electricity through coal, gas, nuclear, and renewable resources, such as wind, hydro, and solar. It is also involved in the provision of pumped storage services, and energy and infrastructure solutions; property investment activities; and retail of electricity and gas. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong.
About PNM Resources
PNM Resources, 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. PNM Resources, Inc. was founded in 1882 and is based in Albuquerque, New Mexico.
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