WallStSmart

H2O America (HTO)vsTXNM Energy, Inc. (TXNM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TXNM Energy, Inc. generates 168% more annual revenue ($2.19B vs $816.28M). HTO leads profitability with a 12.9% profit margin vs 6.7%. HTO appears more attractively valued with a PEG of 2.55. HTO earns a higher WallStSmart Score of 57/100 (C).

HTO

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 6.0Quality: 5.0

TXNM

Hold

49

out of 100

Grade: D+

Growth: 2.7Profit: 5.0Value: 3.3Quality: 3.3
Piotroski: 2/9Altman Z: 0.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HTOUndervalued (+32.5%)

Margin of Safety

+32.5%

Fair Value

$76.99

Current Price

$57.97

$19.02 discount

UndervaluedFair: $76.99Overvalued
TXNMOvervalued (-10.8%)

Margin of Safety

-10.8%

Fair Value

$53.56

Current Price

$58.99

$5.43 premium

UndervaluedFair: $53.56Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HTO2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

TXNM1 strengths · Avg: 8.0/10
Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

HTO4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

PEG RatioValuation
2.552/10

Expensive relative to growth rate

Free Cash FlowQuality
$-49.23M2/10

Negative free cash flow — burning cash

TXNM4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Return on EquityProfitability
5.4%3/10

ROE of 5.4% — below average capital efficiency

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : HTO

The strongest argument for HTO centers on Price/Book, Operating Margin.

Bull Case : TXNM

The strongest argument for TXNM centers on Price/Book.

Bear Case : HTO

The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.

Bear Case : TXNM

The primary concerns for TXNM are Revenue Growth, Return on Equity, Profit Margin. A P/E of 42.0x leaves little room for execution misses.

Key Dynamics to Monitor

HTO carries more volatility with a beta of 0.34 — expect wider price swings.

HTO is growing revenue faster at 9.4% — sustainability is the question.

HTO generates stronger free cash flow (-49M), providing more financial flexibility.

Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HTO scores higher overall (57/100 vs 49/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

H2O America

UTILITIES · UTILITIES - REGULATED WATER · USA

H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.

TXNM Energy, Inc.

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

TXNM Energy, Inc., provides electricity and electric services in the United States. The company is headquartered in Albuquerque, New Mexico.

Want to dig deeper into these stocks?