Critical Survey: TXNM Energy (NYSE:TXNM) vs. EnSync (OTCMKTS:ESNC)

EnSync (OTCMKTS:ESNC) and TXNM Energy (NYSE:TXNM) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Risk and Volatility

EnSync has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, TXNM Energy has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.

Insider and Institutional Ownership

91.7% of TXNM Energy shares are held by institutional investors. 14.8% of EnSync shares are held by company insiders. Comparatively, 1.4% of TXNM Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EnSync	N/A	N/A	N/A	N/A	N/A
TXNM Energy	$1.91 billion	2.30	$88.35 million	$1.92	25.35

TXNM Energy has higher revenue and earnings than EnSync.

Analyst Recommendations

This is a summary of recent ratings and target prices for EnSync and TXNM Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EnSync	0	0	0	0	0.00
TXNM Energy	0	2	3	0	2.60

TXNM Energy has a consensus price target of $52.00, suggesting a potential upside of 6.82%. Given TXNM Energy’s stronger consensus rating and higher possible upside, analysts clearly believe TXNM Energy is more favorable than EnSync.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EnSync	N/A	N/A	N/A
TXNM Energy	9.26%	9.69%	2.26%

Summary

TXNM Energy beats EnSync on 8 of the 10 factors compared between the two stocks.

About EnSync

EnSync, Inc., together with its subsidiaries, develops, licenses, and manufactures energy management systems solutions for the residential and commercial energy systems, and independent utility energy systems markets in the United States and internationally. The company's products include Matrix energy management, an energy control system for the commercial and residential energy systems markets; Home Energy System for property developers and residential customers; and DER SuperModule system, a self-contained DER system that integrates with renewable generation, customer load, and grid interconnection for deploying the least expensive, highest value, and most reliable electricity. Its products also comprise DER Flex Internet of energy control platform, a software platform that seamlessly connects to DERs; True Peer-to-PeerTM energy exchange technology; and Hybrid energy storage system. The company was formerly known as ZBB Energy Corporation and changed its name to EnSync, Inc. in August 2015. EnSync, Inc. was founded in 1986 and is headquartered in Menomonee Falls, Wisconsin.

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.