Talen Energy (OTCMKTS:TLNE – Get Free Report) and American Electric Power (NASDAQ:AEP – Get Free Report) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Institutional and Insider Ownership
0.4% of Talen Energy shares are owned by institutional investors. Comparatively, 75.2% of American Electric Power shares are owned by institutional investors. 0.1% of American Electric Power shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Talen Energy and American Electric Power’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Talen Energy | N/A | 1.93% | 0.67% |
| American Electric Power | 14.60% | 11.23% | 2.93% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talen Energy | 0 | 0 | 3 | 0 | 3.00 |
| American Electric Power | 1 | 5 | 6 | 0 | 2.42 |
Talen Energy presently has a consensus target price of $101.00, suggesting a potential downside of 8.56%. American Electric Power has a consensus target price of $88.62, suggesting a potential upside of 0.36%. Given American Electric Power’s higher possible upside, analysts clearly believe American Electric Power is more favorable than Talen Energy.
Earnings and Valuation
This table compares Talen Energy and American Electric Power’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Talen Energy | $2.55 billion | 2.55 | $613.00 million | N/A | N/A |
| American Electric Power | $19.32 billion | 2.41 | $2.21 billion | $5.39 | 16.38 |
American Electric Power has higher revenue and earnings than Talen Energy.
Summary
American Electric Power beats Talen Energy on 9 of the 11 factors compared between the two stocks.
About Talen Energy
Talen Energy Corporation, an independent power producer and infrastructure company, produces and sells electricity, capacity, and ancillary services into wholesale power markets in the United States. The company operates nuclear, fossil, solar, and coal power plants. It is also developing battery storage projects. The company owns and operates approximately 10.7 GW of power infrastructure. Talen Energy Corporation is headquartered in Houston, Texas.
About American Electric Power
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, natural gas, renewable, nuclear, hydro, solar, wind, and other energy sources. It also supplies and markets electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio.
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.
