Financial Comparison: Talen Energy (TLN) and Its Peers

Talen Energy (NASDAQ:TLN) is one of 141 publicly-traded companies in the “Independent Power & Renewable Electricity Producers” industry, but how does it compare to its competitors? We will compare Talen Energy to similar businesses based on the strength of its valuation, analyst recommendations, dividends, institutional ownership, risk, earnings and profitability.

Risk and Volatility

Talen Energy has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500. Comparatively, Talen Energy’s competitors have a beta of 0.62, meaning that their average stock price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Talen Energy and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talen Energy	2	2	12	0	2.62
Talen Energy Competitors	963	2986	3825	188	2.41

Talen Energy presently has a consensus price target of $458.69, suggesting a potential upside of 28.18%. As a group, “Independent Power & Renewable Electricity Producers” companies have a potential upside of 162.14%. Given Talen Energy’s competitors higher probable upside, analysts clearly believe Talen Energy has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Talen Energy and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Talen Energy	$2.58 billion	-$219.00 million	-64.59
Talen Energy Competitors	$6.24 billion	$816.69 million	1.47

Talen Energy’s competitors have higher revenue and earnings than Talen Energy. Talen Energy is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

0.4% of Talen Energy shares are held by institutional investors. Comparatively, 36.0% of shares of all “Independent Power & Renewable Electricity Producers” companies are held by institutional investors. 0.8% of Talen Energy shares are held by insiders. Comparatively, 21.5% of shares of all “Independent Power & Renewable Electricity Producers” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Talen Energy and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Talen Energy	-6.43%	53.70%	5.58%
Talen Energy Competitors	-33.53%	10.63%	0.87%

Summary

Talen Energy competitors beat Talen Energy on 7 of the 13 factors compared.

Talen Energy Company Profile

Talen Energy Corporation is an independent power producer that owns and operates electricity-generation facilities in the United States. Its portfolio includes nuclear, natural gas, coal, oil and hydroelectric assets, with the Susquehanna nuclear power plant in Pennsylvania among its major facilities. The company sells electricity and related products, including capacity and ancillary services, primarily through wholesale power markets. Its operations are concentrated in the Mid-Atlantic region served by PJM Interconnection, with additional generation assets in other U.S. markets.