Critical Contrast: XPLR Infrastructure (NYSE:XIFR) versus TXNM Energy (NYSE:TXNM)

XPLR Infrastructure (NYSE:XIFR) and TXNM Energy (NYSE:TXNM) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for XPLR Infrastructure and TXNM Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPLR Infrastructure	2	14	2	0	2.00
TXNM Energy	0	2	4	0	2.67

XPLR Infrastructure currently has a consensus price target of $20.27, suggesting a potential upside of 139.84%. TXNM Energy has a consensus price target of $52.33, suggesting a potential upside of 4.24%. Given XPLR Infrastructure’s higher possible upside, equities research analysts plainly believe XPLR Infrastructure is more favorable than TXNM Energy.

Dividends

XPLR Infrastructure pays an annual dividend of $3.67 per share and has a dividend yield of 43.4%. TXNM Energy pays an annual dividend of $1.63 per share and has a dividend yield of 3.2%. XPLR Infrastructure pays out -3,670.0% of its earnings in the form of a dividend. TXNM Energy pays out 84.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. XPLR Infrastructure is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPLR Infrastructure	$1.23 billion	0.64	-$10.00 million	($0.10)	-84.50
TXNM Energy	$1.94 billion	2.34	$88.35 million	$1.92	26.15

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

Volatility & Risk

XPLR Infrastructure has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XPLR Infrastructure	-0.73%	1.34%	0.85%
TXNM Energy	9.26%	9.69%	2.26%

Institutional & Insider Ownership

66.0% of XPLR Infrastructure shares are owned by institutional investors. Comparatively, 91.7% of TXNM Energy shares are owned by institutional investors. 0.1% of XPLR Infrastructure shares are owned by insiders. Comparatively, 1.4% of TXNM Energy 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

TXNM Energy beats XPLR Infrastructure on 11 of the 15 factors compared between the two stocks.

About XPLR Infrastructure

XPLR Infrastructure LP engages in the acquisition, management, and ownership of contracted clean energy projects with long-term cash flows. It owns interests in wind and solar projects in North America and natural gas infrastructure assets in Texas. The company was founded on March 6, 2014 and is headquartered in Juno Beach, FL.

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.