Talen Energy (NASDAQ:TLN) vs. Central Puerto (NYSE:CEPU) Financial Analysis

Central Puerto (NYSE:CEPU) and Talen Energy (NASDAQ:TLN) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Insider & Institutional Ownership

3.0% of Central Puerto shares are owned by institutional investors. Comparatively, 0.4% of Talen Energy shares are owned by institutional investors. 0.1% of Central Puerto shares are owned by insiders. Comparatively, 0.2% of Talen Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Central Puerto and Talen Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Puerto	$354.50 billion	0.00	$562.57 million	$2.45	4.58
Talen Energy	$2.55 billion	3.47	$613.00 million	N/A	N/A

Talen Energy has lower revenue, but higher earnings than Central Puerto.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Central Puerto	52.54%	21.76%	14.28%
Talen Energy	41.79%	2.27%	0.82%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Central Puerto and Talen Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Puerto	0	1	0	0	2.00
Talen Energy	0	0	9	0	3.00

Central Puerto currently has a consensus price target of $12.00, indicating a potential upside of 6.86%. Talen Energy has a consensus price target of $205.33, indicating a potential upside of 18.09%. Given Talen Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Talen Energy is more favorable than Central Puerto.

Summary

Talen Energy beats Central Puerto on 6 of the 11 factors compared between the two stocks.

About Central Puerto

Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.

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.