Analyzing ENEVA S A/S (OTCMKTS:ENEVY) and Talen Energy (NASDAQ:TLN)

ENEVA S A/S (OTCMKTS:ENEVY) and Talen Energy (NASDAQ:TLN) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Earnings & Valuation

This table compares ENEVA S A/S and Talen Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENEVA S A/S	$856.12 million	2.25	$242.92 million	N/A	N/A
Talen Energy	$2.55 billion	4.23	$613.00 million	$18.68	11.38

Talen Energy has higher revenue and earnings than ENEVA S A/S.

Institutional and Insider Ownership

0.4% of Talen Energy shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for ENEVA S A/S and Talen Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENEVA S A/S	0	0	0	0	0.00
Talen Energy	0	0	9	0	3.00

Talen Energy has a consensus target price of $210.33, suggesting a potential downside of 1.08%. Given Talen Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Talen Energy is more favorable than ENEVA S A/S.

Profitability

This table compares ENEVA S A/S and Talen Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ENEVA S A/S	28.38%	15.15%	7.51%
Talen Energy	50.48%	8.59%	3.13%

Summary

Talen Energy beats ENEVA S A/S on 8 of the 11 factors compared between the two stocks.

About ENEVA S A/S

Eneva S.A., together with its subsidiaries, operates as an integrated energy company in Brazil. It generates electricity through coal, natural gas, hydro, and solar energy. The company has an operational installed capacity of 2.2 GWs. It also engages in the exploration, development, and production of natural gas; and energy trading activities. The company was formerly known as MPX Energia S.A. and changed its name to Eneva S.A. in October 2013. Eneva S.A. was founded in 2001 and is headquartered in Rio de Janeiro, Brazil.

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.