Analyzing Talen Energy (NASDAQ:TLN) and Environmental Power (OTCMKTS:EPGRQ)

Talen Energy (NASDAQ:TLN) and Environmental Power (OTCMKTS:EPGRQ) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Talen Energy	9.83%	13.52%	2.99%
Environmental Power	N/A	N/A	N/A

Valuation and Earnings

This table compares Talen Energy and Environmental Power”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talen Energy	$2.12 billion	7.45	$998.00 million	$4.62	74.68
Environmental Power	N/A	N/A	N/A	N/A	N/A

Talen Energy has higher revenue and earnings than Environmental Power.

Insider and Institutional Ownership

0.4% of Talen Energy shares are owned by institutional investors. 0.2% of Talen Energy shares are owned by company insiders. Comparatively, 18.8% of Environmental Power shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Talen Energy and Environmental Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talen Energy	0	3	11	0	2.79
Environmental Power	0	0	0	0	0.00

Talen Energy presently has a consensus target price of $413.25, suggesting a potential upside of 19.78%. Given Talen Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Talen Energy is more favorable than Environmental Power.

Summary

Talen Energy beats Environmental Power on 8 of the 9 factors compared between the two stocks.

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.

About Environmental Power

Environmental Power Corporation engages in the development, ownership, and operation of renewable energy production facilities in the United States. The company develops renewable energy facilities for the production and commercial application of methane-rich biogas produced from animal, food industry, and other organic wastes. The biogas could be sold to end-users or used to produce pipeline-grade methane, which is referred as renewable natural gas, liquefied natural gas, compressed natural gas, and renewable electrical energy or thermal energy, as well as to produce other useful by-products. Environmental Power Corporation operates three single digester facilities in Wisconsin. The company was founded in 1982 and is headquartered in Tarrytown, New York.