Talen Energy (NASDAQ:TLN – Get Free Report) and Pinnacle West Capital (NYSE:PNW – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.
Profitability
This table compares Talen Energy and Pinnacle West Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Talen Energy | 50.48% | 8.59% | 3.13% |
| Pinnacle West Capital | 12.26% | 9.60% | 2.43% |
Analyst Recommendations
This is a summary of current ratings for Talen Energy and Pinnacle West Capital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talen Energy | 0 | 0 | 12 | 0 | 3.00 |
| Pinnacle West Capital | 0 | 5 | 3 | 1 | 2.56 |
Risk and Volatility
Talen Energy has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, Pinnacle West Capital has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.
Insider & Institutional Ownership
0.4% of Talen Energy shares are owned by institutional investors. Comparatively, 91.5% of Pinnacle West Capital shares are owned by institutional investors. 0.2% of Talen Energy shares are owned by insiders. Comparatively, 0.2% of Pinnacle West Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Talen Energy and Pinnacle West Capital”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Talen Energy | $2.07 billion | 4.76 | $613.00 million | $17.41 | 12.34 |
| Pinnacle West Capital | $5.12 billion | 2.18 | $501.56 million | $5.22 | 17.94 |
Talen Energy has higher earnings, but lower revenue than Pinnacle West Capital. Talen Energy is trading at a lower price-to-earnings ratio than Pinnacle West Capital, indicating that it is currently the more affordable of the two stocks.
Summary
Talen Energy beats Pinnacle West Capital on 9 of the 15 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 Pinnacle West Capital
Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables. The company also owns and maintains transmission and distribution substations; and owns energy storage facilities. Pinnacle West Capital Corporation was incorporated in 1985 and is headquartered in Phoenix, Arizona.
Receive News & Ratings for Talen Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Talen Energy and related companies with MarketBeat.com's FREE daily email newsletter.
