PNM resources (New York Stock Exchange: PNMGet a rating) and China Resources Power (OTCMKTS: CRPJYGet a rating) are both mid-cap utilities, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Insider and Institutional Ownership

86.6% of PNM Resources shares are held by institutional investors. 1.4% of PNM Resources shares are held by insiders. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a stock is poised for long-term growth.

Dividends

PNM Resources pays an annual dividend of $1.39 per share and has a dividend yield of 3.0%. China Resources Power pays an annual dividend of $0.86 per share and has a dividend yield of 3.1%. PNM Resources distributes 61.5% of its profits as a dividend.

Analyst Recommendations

This is a summary of recent ratings and target prices for PNM Resources and China Resources Power, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
NMP Resources 1 2 1 0 2.00
Resource Power of China 0 0 0 0 N / A

PNM Resources currently has a consensus target price of $49.33, suggesting a potential upside of 7.25%. Given PNM Resources’ likely higher upside, equity research analysts clearly believe that PNM Resources is more favorable than China Resources Power.

Risk and Volatility

PNM Resources has a beta of 0.46, meaning its stock price is 54% less volatile than the S&P 500. In comparison, China Resources Power has a beta of 0.54, meaning its stock price is 46 % less volatile than the S&P 500.

Valuation and benefits

This chart compares the gross revenue, earnings per share (EPS), and valuation of PNM Resources and China Resources Power.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
NMP Resources $1.78 billion 2.22 $196.36 million $2.26 8:35 p.m.
Resource Power of China $8.97 billion 0.98 $977.41 million N / A N / A

China Resources Power has higher revenues and profits than PNM Resources.

Profitability

This table compares the net margins, return on equity and return on assets of PNM Resources and China Resources Power.

Net margins Return on equity return on assets
NMP Resources 10.68% 10.38% 2.69%
Resource Power of China N / A N / A N / A

Summary

PNM Resources beats China Resources Power on 8 out of 13 factors compared between the two stocks.

PNM Resources Company Profile (Get a rating)

PNM Resources, Inc., through its subsidiaries, provides electricity and electrical services in the United States. It operates through the Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP) segments. The PNM segment is engaged in the generation, transmission and distribution of electricity. The segment generates electricity using coal, natural gas and oil, nuclear fuel, solar, wind and geothermal energy sources. As of December 31, 2021, this segment owned or leased facilities with a total net generating capacity of 2,168 megawatts; and had 3,426 miles of electrical transmission lines, 5,751 miles of overhead distribution lines, 5,765 miles of underground distribution lines, and 250 substations. The segment also owns and leases communications, office and other equipment, office space, vehicles and real estate. The TNMP segment provides regulated transmission and distribution services. As of December 31, 2021, the segment had 983 miles of overhead power transmission lines, 7,297 miles of overhead distribution lines, 1,408 miles of underground distribution lines, and 113 substations. The segment also owns and leases vehicles, service facilities and offices throughout its service territory. The company serves approximately 806,000 residential, commercial and industrial customers and end users of electricity in New Mexico and Texas. PNM Resources, Inc. was incorporated in 1882 and is headquartered in Albuquerque, New Mexico.

China Resources Power Company Profile (Get a rating)

China Resources Power Holdings Company Limited, an investment holding company, invests, develops, operates and manages power plants and coal mines in the People’s Republic of China. The Company operates in two segments, thermal power and renewable energy. It operates and manages coal and gas-fired power plants, wind farms, photovoltaic power projects, hydroelectric projects and other clean and renewable energy projects. As of December 31, 2020, the company had 37 coal-fired power plants, 119 wind farms, 25 photovoltaic plants, 2 hydroelectric plants and 3 gas-fired plants with a total attributable operating generating capacity of 43,365 MW. It is also engaged in coal mining activities; and undertakes heat and power cogeneration, coal-power integration and other projects. In addition, the Company is involved in the sale of electricity, the construction and operation of distribution networks, distributed energy resources and other businesses. In addition, it provides various energy solutions. The company was founded in 2001 and is based in Wanchai, Hong Kong. China Resources Power Holdings Company Limited is a subsidiary of CRH (Power) Limited.



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