Talen Energy (NASDAQ:TLN – Get Free Report) and Brookfield Renewable (NYSE:BEPC – Get Free Report) are both mid-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.
Analyst Ratings
This is a breakdown of recent ratings for Talen Energy and Brookfield Renewable, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talen Energy | 0 | 0 | 11 | 0 | 3.00 |
| Brookfield Renewable | 0 | 0 | 2 | 0 | 3.00 |
Talen Energy presently has a consensus price target of $246.00, suggesting a potential upside of 39.58%. Brookfield Renewable has a consensus price target of $32.50, suggesting a potential upside of 17.39%. Given Talen Energy’s higher probable upside, analysts clearly believe Talen Energy is more favorable than Brookfield Renewable.
Risk & Volatility
Institutional and Insider Ownership
0.4% of Talen Energy shares are owned by institutional investors. Comparatively, 75.1% of Brookfield Renewable shares are owned by institutional investors. 0.2% of Talen Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Talen Energy and Brookfield Renewable”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 | 3.91 | $613.00 million | $17.41 | 10.12 |
| Brookfield Renewable | $4.14 billion | 0.97 | $236.00 million | ($0.89) | -31.11 |
Talen Energy has higher earnings, but lower revenue than Brookfield Renewable. Brookfield Renewable 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 Talen Energy and Brookfield Renewable’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% |
| Brookfield Renewable | -0.15% | -0.06% | -0.02% |
Summary
Talen Energy beats Brookfield Renewable on 11 of the 13 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 Brookfield Renewable
Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.
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