Analyzing CLP (OTCMKTS:CLPHY) and PNM Resources (NYSE:PNM)

CLP (OTCMKTS:CLPHY) and PNM Resources (NYSE:PNM) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for CLP and PNM Resources, as reported by MarketBeat.

	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 possible upside, analysts clearly believe PNM Resources is more favorable than CLP.

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%

Risk and Volatility

CLP has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, PNM Resources has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.

Earnings and Valuation

This table compares CLP and PNM Resources’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CLP	$11.13 billion	2.00	$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.

Dividends

CLP pays an annual dividend of $0.29 per share and has a dividend yield of 3.3%. 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 raised its dividend for 13 consecutive years.

Institutional & Insider 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 stock will outperform the market over the long term.

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.