Talen Energy (NASDAQ:TLN – Get Free Report) and Enlight Renewable Energy (NASDAQ:ENLT – Get Free Report) are both large-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
Profitability
This table compares Talen Energy and Enlight Renewable Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Talen Energy | -0.63% | 41.58% | 6.00% |
| Enlight Renewable Energy | 9.47% | 2.48% | 0.61% |
Insider & Institutional Ownership
0.4% of Talen Energy shares are owned by institutional investors. Comparatively, 38.9% of Enlight Renewable Energy shares are owned by institutional investors. 0.8% of Talen Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Talen Energy | $2.58 billion | 6.80 | -$219.00 million | ($0.67) | -577.31 |
| Enlight Renewable Energy | $628.99 million | 20.25 | $132.10 million | $0.43 | 249.81 |
Enlight Renewable Energy has lower revenue, but higher earnings than Talen Energy. Talen Energy is trading at a lower price-to-earnings ratio than Enlight Renewable Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for Talen Energy and Enlight Renewable Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talen Energy | 0 | 3 | 12 | 0 | 2.80 |
| Enlight Renewable Energy | 2 | 2 | 3 | 0 | 2.14 |
Talen Energy currently has a consensus target price of $448.58, indicating a potential upside of 15.97%. Enlight Renewable Energy has a consensus target price of $63.17, indicating a potential downside of 41.20%. Given Talen Energy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Talen Energy is more favorable than Enlight Renewable Energy.
Risk and Volatility
Talen Energy has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, Enlight Renewable Energy has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.
Summary
Talen Energy beats Enlight Renewable Energy on 8 of the 14 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 Enlight Renewable Energy
Enlight Renewable Energy Ltd operates a renewable energy platform in Israel, Central-Eastern Europe, Western Europe, and the United States. The company develops, finances, constructs, owns, and operates utility-scale renewable energy projects. It develops wind energy and solar energy projects, as well as energy storage projects. The company was incorporated in 1981 and is headquartered in Rosh Haayin, Israel.
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