Reviewing Talen Energy (NASDAQ:TLN) & Oklo (NYSE:OKLO)

Oklo (NYSE:OKLO) and Talen Energy (NASDAQ:TLN) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Insider & Institutional Ownership

85.0% of Oklo shares are owned by institutional investors. Comparatively, 0.4% of Talen Energy shares are owned by institutional investors. 18.9% of Oklo shares are owned by company insiders. Comparatively, 0.2% of Talen Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Oklo has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Talen Energy has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oklo	N/A	-22.57%	-20.19%
Talen Energy	28.51%	11.47%	3.36%

Analyst Recommendations

This is a breakdown of current recommendations for Oklo and Talen Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oklo	0	3	4	1	2.75
Talen Energy	0	0	14	0	3.00

Oklo presently has a consensus price target of $58.50, suggesting a potential upside of 8.39%. Talen Energy has a consensus price target of $255.25, suggesting a potential downside of 6.21%. Given Oklo’s higher probable upside, equities research analysts plainly believe Oklo is more favorable than Talen Energy.

Valuation & Earnings

This table compares Oklo and Talen Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oklo	N/A	N/A	-$73.62 million	($5.41)	-9.98
Talen Energy	$2.12 billion	5.86	$998.00 million	$9.63	28.26

Talen Energy has higher revenue and earnings than Oklo. Oklo is trading at a lower price-to-earnings ratio than Talen Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Talen Energy beats Oklo on 10 of the 14 factors compared between the two stocks.

About Oklo

Oklo Inc. designs and develops fission power plants to provide reliable and commercial-scale energy to customers in the United States. It also provides used nuclear fuel recycling services. The company was founded in 2013 and is based in Santa Clara, California.

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.