TXNM vs PNW vs NWE

For growth investors, TXNM Energy, Inc.

(TXNM) is the stronger pick with 9. 9% revenue growth year-over-year, versus 4. 2% for Pinnacle West Capital Corporation (PNW). Pinnacle West Capital Corporation (PNW) offers the better valuation at 19. 7x trailing P/E (21. 1x forward), making it the more compelling value choice. Analysts rate TXNM Energy, Inc. (TXNM) a "Buy" — based on 7 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Pinnacle West Capital Corporation (PNW) is the cheapest at 19.

7x versus TXNM Energy, Inc. at 36. 6x. On forward P/E, Northwestern Energy Group Inc is actually cheaper at 19. 3x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Pinnacle West Capital Corporation (PNW) delivered a total return of +35.

9%, compared to +25. 9% for Northwestern Energy Group Inc (NWE). Over 10 years, the gap is even starker: TXNM returned +118. 8% versus NWE's +65. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Pinnacle West Capital Corporation (PNW) is the lower-risk stock at -0.

03β versus Northwestern Energy Group Inc's 0. 24β — meaning NWE is approximately -973% more volatile than PNW relative to the S&P 500. On balance sheet safety, TXNM Energy, Inc. (TXNM) carries a lower debt/equity ratio of 0% versus 3% for Pinnacle West Capital Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), TXNM Energy, Inc.

(TXNM) is pulling ahead at 9. 9% versus 4. 2% for Pinnacle West Capital Corporation (PNW). On earnings-per-share growth, the picture is similar: Pinnacle West Capital Corporation grew EPS -3. 6% year-over-year, compared to -39. 3% for TXNM Energy, Inc.. Over a 3-year CAGR, PNW leads at 7. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Pinnacle West Capital Corporation (PNW) is the more profitable company, earning 11.

5% net margin versus 7. 0% for TXNM Energy, Inc. — meaning it keeps 11. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PNW leads at 20. 9% versus 20. 2% for NWE. At the gross margin level — before operating expenses — NWE leads at 82. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Northwestern Energy Group Inc (NWE) trades at 19.

3x forward P/E versus 21. 1x for Pinnacle West Capital Corporation — 1. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PNW: 3. 6% to $103. 11.

All stocks in this comparison pay dividends.

Northwestern Energy Group Inc (NWE) offers the highest yield at 3. 6%, versus 3. 0% for TXNM Energy, Inc. (TXNM).

For long-horizon retirement investors, Pinnacle West Capital Corporation (PNW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.

03), 3. 5% yield). Both have compounded well over 10 years (PNW: +78. 9%, NWE: +65. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: TXNM is a small-cap quality compounder stock; PNW is a mid-cap income-oriented stock; NWE is a small-cap income-oriented stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.