Contrasting TXNM Energy (NYSE:TXNM) and Energy Vault (NYSE:NRGV)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TXNM Energy	6.96%	7.18%	2.05%
Energy Vault	-52.97%	-171.09%	-40.28%

Risk and Volatility

TXNM Energy has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500. Comparatively, Energy Vault has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for TXNM Energy and Energy Vault, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXNM Energy	0	3	0	0	2.00
Energy Vault	3	1	2	0	1.83

TXNM Energy currently has a consensus price target of $61.25, suggesting a potential upside of 7.47%. Energy Vault has a consensus price target of $5.08, suggesting a potential upside of 22.97%. Given Energy Vault’s higher possible upside, analysts plainly believe Energy Vault is more favorable than TXNM Energy.

Institutional and Insider Ownership

91.7% of TXNM Energy shares are held by institutional investors. Comparatively, 40.0% of Energy Vault shares are held by institutional investors. 1.1% of TXNM Energy shares are held by company insiders. Comparatively, 17.2% of Energy Vault shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares TXNM Energy and Energy Vault”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXNM Energy	$2.19 billion	2.88	$151.89 million	$1.39	41.00
Energy Vault	$203.67 million	3.61	-$103.61 million	($0.71)	-5.81

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

Summary

TXNM Energy beats Energy Vault on 9 of the 14 factors compared between the two stocks.

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.

About Energy Vault

Energy Vault Holdings, Inc. develops and sells energy storage solutions. The company offers B-Vault, an electrochemical battery energy storage systems for shorter-duration energy storage needs; G-Vault, a proprietary gravity energy storage solution, including EVx solution; and H-Vault, a hybrid energy storage systems including systems that integrate green hydrogen. Its software solutions includes Vault-OS, an energy management system the management of one or more diverse storage mediums; Vault-Bidder that utilizes machine learning algorithms to match node-specific data with real-time weather and asset performance information; and Vault-Manager which designs to safeguard asset management and to help blend developing technologies seamlessly into existing solutions. Energy Vault Holdings, Inc. is based in Westlake Village, California.