Talen Energy (OTCMKTS:TLNE – Get Free Report) and Algonquin Power & Utilities (NYSE:AQN – Get Free Report) are both mid-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Institutional and Insider Ownership
0.4% of Talen Energy shares are owned by institutional investors. Comparatively, 62.3% of Algonquin Power & Utilities shares are owned by institutional investors. 0.1% of Algonquin Power & Utilities shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Talen Energy and Algonquin Power & Utilities’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Talen Energy | N/A | N/A | N/A |
Algonquin Power & Utilities | 1.06% | 5.64% | 2.05% |
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Talen Energy | 0 | 0 | 3 | 0 | 3.00 |
Algonquin Power & Utilities | 0 | 6 | 2 | 0 | 2.25 |
Talen Energy presently has a consensus target price of $92.67, indicating a potential downside of 10.98%. Algonquin Power & Utilities has a consensus target price of $7.67, indicating a potential upside of 14.34%. Given Algonquin Power & Utilities’ higher probable upside, analysts clearly believe Algonquin Power & Utilities is more favorable than Talen Energy.
Earnings & Valuation
This table compares Talen Energy and Algonquin Power & Utilities’ gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Talen Energy | $2.55 billion | 2.41 | $613.00 million | N/A | N/A |
Algonquin Power & Utilities | $2.70 billion | 1.71 | $28.67 million | $0.03 | 223.50 |
Talen Energy has higher earnings, but lower revenue than Algonquin Power & Utilities.
Summary
Algonquin Power & Utilities beats Talen Energy on 7 of the 11 factors compared between the two stocks.
About Talen Energy
Talen Energy Corporation, together with its subsidiaries, operates as a power generation and infrastructure company in the United States. The company operates in two segments: PJM, and ERCOT and WECC. It produces and sells electricity, capacity, and ancillary services. The company also operates nuclear, fossil, solar, gas, and coal power plants, as well as engages in marketing activities. In addition, it develops battery storage projects. As of December 31, 2023, the company operates 12,374 megawatts of generating capacity in the wholesale power markets. Talen Energy Corporation was incorporated in 2014 and is headquartered in Houston, Texas.
About Algonquin Power & Utilities
Algonquin Power & Utilities Corp. operates in the power and utility industries in the United States, Canada, and other regions. The company operates in two segments, Regulated Services Group and Renewable Energy Group. The company primarily owns and operates a regulated electric, water distribution and wastewater collection, and natural gas utility systems and transmission operations. As of December 31, 2023, it provided distribution services to approximately 1,256,000 customer connections in the electric (approximately 309,000 customer connections), water and wastewater (approximately 572,000 customer connections), and natural gas sectors (approximately 375,000 customer connections). The company's electrical distribution utility systems and related transmission and generation assets are located in the states of Arkansas, California, Kansas, Missouri, Nevada, New Hampshire, and Oklahoma, and in Bermuda. Its regulated water distribution and wastewater collection utility systems are located in the states of Arizona, Arkansas, California, Illinois, Missouri, New York and Texas, and in Chile. The company's regulated natural gas distribution utility systems located in the province of New Brunswick and the states of Georgia, Illinois, Iowa, Massachusetts, Missouri, New Hampshire and New York. It also owns and operates generating assets with a gross capacity of approximately 2.0 gigawatt (GW) and has investments in generating assets with approximately 0.3 GW of net generation capacity. The company generates and sells electrical energy, capacity, ancillary products, and renewable attributes produced by its renewable and clean power generation facilities. It has economic interests in hydroelectric, wind, solar, renewable natural gas, and thermal facilities. As of December 31, 2023, it had a combined net generating capacity attributable to the Renewable Energy Group of approximately 2.7 GW. The company was incorporated in 1988 and is headquartered in Oakville, Canada.
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