TXNM vs PNW vs NWE vs AVA vs OTTR

For growth investors, TXNM Energy, Inc.

(TXNM) is the stronger pick with 9. 9% revenue growth year-over-year, versus -2. 0% for Otter Tail Corporation (OTTR). Otter Tail Corporation (OTTR) offers the better valuation at 13. 4x trailing P/E (15. 9x 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, Otter Tail Corporation (OTTR) is the cheapest at 13.

4x versus TXNM Energy, Inc. at 36. 6x. On forward P/E, Otter Tail Corporation is actually cheaper at 15. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Otter Tail Corporation wins at 0. 69x versus Pinnacle West Capital Corporation's 28. 97x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Otter Tail Corporation (OTTR) delivered a total return of +98.

1%, compared to +6. 9% for Avista Corporation (AVA). Over 10 years, the gap is even starker: OTTR returned +241. 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), Pinnacle West Capital Corporation (PNW) is the lower-risk stock at -0.

03β versus Otter Tail Corporation's 0. 42β — meaning OTTR is approximately -1650% 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 -2. 0% for Otter Tail Corporation (OTTR). 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, 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.

Otter Tail Corporation (OTTR) is the more profitable company, earning 21.

2% net margin versus 7. 0% for TXNM Energy, Inc. — meaning it keeps 21. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: OTTR leads at 26. 5% versus 18. 0% for AVA. 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Otter Tail Corporation (OTTR) is the more undervalued stock at a PEG of 0. 69x versus Pinnacle West Capital Corporation's 28. 97x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Otter Tail Corporation (OTTR) trades at 15. 9x forward P/E versus 21. 1x for Pinnacle West Capital Corporation — 5. 2x 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.

Avista Corporation (AVA) offers the highest yield at 4. 8%, versus 2. 4% for Otter Tail Corporation (OTTR).

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%, OTTR: +241. 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; PNW is a mid-cap income-oriented stock; NWE is a small-cap income-oriented stock; AVA is a small-cap deep-value stock; OTTR 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.