Engie Brasil Energia (OTCMKTS:EGIEY – Get Free Report) and Talen Energy (NASDAQ:TLN – Get Free Report) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.
Volatility & Risk
Engie Brasil Energia has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Talen Energy has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and target prices for Engie Brasil Energia and Talen Energy, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Engie Brasil Energia | 1 | 0 | 0 | 0 | 1.00 |
Talen Energy | 0 | 0 | 11 | 0 | 3.00 |
Insider & Institutional Ownership
0.4% of Talen Energy shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Engie Brasil Energia and Talen Energy”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Engie Brasil Energia | $2.15 billion | 2.41 | $686.94 million | $0.99 | 6.42 |
Talen Energy | $2.55 billion | 4.41 | $613.00 million | $18.68 | 11.87 |
Engie Brasil Energia has higher earnings, but lower revenue than Talen Energy. Engie Brasil Energia is trading at a lower price-to-earnings ratio than Talen Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Engie Brasil Energia and Talen Energy’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Engie Brasil Energia | 39.47% | 27.48% | 6.89% |
Talen Energy | 50.48% | 8.59% | 3.13% |
Summary
Talen Energy beats Engie Brasil Energia on 10 of the 13 factors compared between the two stocks.
About Engie Brasil Energia
Engie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. The company operates 76 plants, including 11 hydroelectric power plants; 1 thermal power plants; 50 wind farms; 3 biomass; 9 photovoltaic and solar power plant; and 2 small hydroelectric plants. As of December 31, 2022, it had an installed capacity of 8,453.3 megawatts. The company also transports natural gas through 4,500 km of gas pipelines. In addition, it manufactures, wholesales, retails, operates, and maintains solar panels. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company was founded in 2005 and is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltda.
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.
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