Talen Energy (NASDAQ:TLN) vs. Crescent Energy (NYSE:CRGY) Financial Analysis

Crescent Energy (NYSE:CRGY) and Talen Energy (NASDAQ:TLN) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Earnings and Valuation

This table compares Crescent Energy and Talen Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crescent Energy	$2.93 billion	0.84	-$114.61 million	($0.15)	-64.57
Talen Energy	$2.12 billion	7.89	$998.00 million	$4.62	79.10

Talen Energy has lower revenue, but higher earnings than Crescent Energy. Crescent Energy is trading at a lower price-to-earnings ratio than Talen Energy, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

52.1% of Crescent Energy shares are held by institutional investors. Comparatively, 0.4% of Talen Energy shares are held by institutional investors. 13.2% of Crescent Energy shares are held by company insiders. Comparatively, 0.2% of Talen Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Crescent Energy has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500. Comparatively, Talen Energy has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.

Profitability

This table compares Crescent Energy and Talen Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crescent Energy	0.66%	11.77%	4.69%
Talen Energy	9.83%	13.52%	2.99%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Crescent Energy and Talen Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crescent Energy	2	3	7	1	2.54
Talen Energy	0	3	13	0	2.81

Crescent Energy currently has a consensus price target of $15.11, suggesting a potential upside of 56.01%. Talen Energy has a consensus price target of $395.07, suggesting a potential upside of 8.10%. Given Crescent Energy’s higher probable upside, analysts plainly believe Crescent Energy is more favorable than Talen Energy.

Summary

Talen Energy beats Crescent Energy on 9 of the 15 factors compared between the two stocks.

About Crescent Energy

Crescent Energy Company acquires, develops, and produces crude oil, natural gas, and natural gas liquids (NGLs) reserves. Its portfolio of assets comprises mid-cycle unconventional and conventional assets in the Eagle Ford and Uinta Basins. It also owns and operates various midstream assets, which provide services to customers. The company is based in Houston, Texas.

About Talen Energy

Talen Energy Corporation is a U.S.-based energy and power generation company. The Company owns or controls approximately 16,000 megawatts of capacity in wholesale power markets, principally in the Northeast, Mid-Atlantic and Southwest regions of the United States. The Company generates and sells electricity, capacity and related products from power plants that use fuel sources, such as nuclear, natural gas and coal. The Company’s Susquehanna nuclear power plant has approximately two boiling water reactors with a combined capacity of over 2,600 megawatts. Its fossil fuel plants are located in Athens, Barney Davis, Bayonne, Brandon Shores, Brunner Island, Camden, Colstrip and Dartmouth, among others. It has an art energy trading center located in Allentown, Pennsylvania (PA), where it manages asset load obligations, fuel supply, capacity and related products, and all supporting physical or financial transactions for its electric generation portfolio.