TXNM vs AVA

For growth investors, TXNM Energy, Inc.

(TXNM) is the stronger pick with 9. 9% revenue growth year-over-year, versus 1. 3% for Avista Corporation (AVA). Avista Corporation (AVA) offers the better valuation at 17. 2x trailing P/E (16. 0x 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, Avista Corporation (AVA) is the cheapest at 17.

2x versus TXNM Energy, Inc. at 36. 6x. On forward P/E, Avista Corporation is actually cheaper at 16. 0x.

Over the past 5 years, TXNM Energy, Inc.

(TXNM) delivered a total return of +34. 0%, compared to +6. 9% for Avista Corporation (AVA). Over 10 years, the gap is even starker: TXNM returned +118. 8% versus AVA's +40. 1%. 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), Avista Corporation (AVA) is the lower-risk stock at -0.

00β versus TXNM Energy, Inc. 's 0. 08β — meaning TXNM is approximately -2850% more volatile than AVA relative to the S&P 500. On balance sheet safety, TXNM Energy, Inc. (TXNM) carries a lower debt/equity ratio of 0% versus 125% for Avista 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 1. 3% for Avista Corporation (AVA). On earnings-per-share growth, the picture is similar: Avista Corporation grew EPS 4. 4% year-over-year, compared to -39. 3% for TXNM Energy, Inc.. Over a 3-year CAGR, AVA leads at 4. 7% 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.

Avista Corporation (AVA) is the more profitable company, earning 9.

8% net margin versus 7. 0% for TXNM Energy, Inc. — meaning it keeps 9. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TXNM leads at 20. 4% versus 18. 0% for AVA. At the gross margin level — before operating expenses — TXNM leads at 38. 1%, 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, Avista Corporation (AVA) trades at 16.

0x forward P/E versus 20. 1x for TXNM Energy, Inc. — 4. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AVA: -0. 8% to $40. 67.

All stocks in this comparison pay dividends.

Avista Corporation (AVA) offers the highest yield at 4. 8%, versus 3. 0% for TXNM Energy, Inc. (TXNM).

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

00), 4. 8% yield). Both have compounded well over 10 years (AVA: +40. 1%, TXNM: +118. 8%), 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; AVA is a small-cap deep-value 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.