Talen Energy (OTCMKTS:TLNE) & Algonquin Power & Utilities (NYSE:AQN) Head to Head Contrast

Talen Energy (OTCMKTS:TLNE) and Algonquin Power & Utilities (NYSE:AQN) are both mid-cap oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Profitability

This table compares Talen Energy and Algonquin Power & Utilities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Talen Energy	N/A	N/A	N/A
Algonquin Power & Utilities	1.06%	5.64%	2.05%

Earnings and Valuation

This table compares Talen Energy and Algonquin Power & Utilities’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talen Energy	$2.55 billion	2.34	$613.00 million	N/A	N/A
Algonquin Power & Utilities	$2.70 billion	1.67	$28.67 million	$0.03	217.83

Talen Energy has higher earnings, but lower revenue than Algonquin Power & Utilities.

Insider and Institutional Ownership

0.4% of Talen Energy shares are held by institutional investors. Comparatively, 62.3% of Algonquin Power & Utilities shares are held by institutional investors. 0.1% of Algonquin Power & Utilities shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Talen Energy and Algonquin Power & Utilities, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talen Energy	0	0	3	0	3.00
Algonquin Power & Utilities	0	6	2	0	2.25

Talen Energy currently has a consensus target price of $92.67, indicating a potential downside of 8.48%. Algonquin Power & Utilities has a consensus target price of $7.67, indicating a potential upside of 17.32%. Given Algonquin Power & Utilities’ higher probable upside, analysts clearly believe Algonquin Power & Utilities is more favorable than Talen Energy.

Summary

Algonquin Power & Utilities beats Talen Energy on 7 of the 11 factors compared between the two stocks.

About Talen Energy

Talen Energy Corporation, together with its subsidiaries, operates as a power generation and infrastructure company in the United States. The company operates in two segments: PJM, and ERCOT and WECC. It produces and sells electricity, capacity, and ancillary services. The company also operates nuclear, fossil, solar, gas, and coal power plants, as well as engages in marketing activities. In addition, it develops battery storage projects. As of December 31, 2023, the company operates 12,374 megawatts of generating capacity in the wholesale power markets. Talen Energy Corporation was incorporated in 2014 and is headquartered in Houston, Texas.

About Algonquin Power & Utilities

Algonquin Power & Utilities Corp. operates in the power and utility industries in the United States, Canada, and other regions. The company operates in two segments, Regulated Services Group and Renewable Energy Group. The company primarily owns and operates a regulated electric, water distribution and wastewater collection, and natural gas utility systems and transmission operations. As of December 31, 2023, it provided distribution services to approximately 1,256,000 customer connections in the electric (approximately 309,000 customer connections), water and wastewater (approximately 572,000 customer connections), and natural gas sectors (approximately 375,000 customer connections). The company's electrical distribution utility systems and related transmission and generation assets are located in the states of Arkansas, California, Kansas, Missouri, Nevada, New Hampshire, and Oklahoma, and in Bermuda. Its regulated water distribution and wastewater collection utility systems are located in the states of Arizona, Arkansas, California, Illinois, Missouri, New York and Texas, and in Chile. The company's regulated natural gas distribution utility systems located in the province of New Brunswick and the states of Georgia, Illinois, Iowa, Massachusetts, Missouri, New Hampshire and New York. It also owns and operates generating assets with a gross capacity of approximately 2.0 gigawatt (GW) and has investments in generating assets with approximately 0.3 GW of net generation capacity. The company generates and sells electrical energy, capacity, ancillary products, and renewable attributes produced by its renewable and clean power generation facilities. It has economic interests in hydroelectric, wind, solar, renewable natural gas, and thermal facilities. As of December 31, 2023, it had a combined net generating capacity attributable to the Renewable Energy Group of approximately 2.7 GW. The company was incorporated in 1988 and is headquartered in Oakville, Canada.