FuelCell Energy (NASDAQ:FCEL – Get Free Report) and Talen Energy (NASDAQ:TLN – Get Free Report) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.
Profitability
This table compares FuelCell Energy and Talen Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FuelCell Energy | -108.52% | -21.16% | -15.03% |
| Talen Energy | 8.75% | 17.81% | 4.52% |
Analyst Ratings
This is a summary of recent recommendations for FuelCell Energy and Talen Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FuelCell Energy | 1 | 5 | 0 | 0 | 1.83 |
| Talen Energy | 0 | 0 | 16 | 0 | 3.00 |
Institutional & Insider Ownership
42.8% of FuelCell Energy shares are owned by institutional investors. Comparatively, 0.4% of Talen Energy shares are owned by institutional investors. 0.4% of FuelCell Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
FuelCell Energy has a beta of 4.15, indicating that its share price is 315% more volatile than the S&P 500. Comparatively, Talen Energy has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500.
Earnings and Valuation
This table compares FuelCell Energy 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 | |
| FuelCell Energy | $112.13 million | 0.86 | -$126.01 million | ($7.52) | -0.56 |
| Talen Energy | $2.12 billion | 7.68 | $998.00 million | $3.53 | 100.72 |
Talen Energy has higher revenue and earnings than FuelCell Energy. FuelCell Energy 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 FuelCell Energy on 10 of the 14 factors compared between the two stocks.
About FuelCell Energy
FuelCell Energy, Inc., together with its subsidiaries, manufactures and sells stationary fuel cell and electrolysis platforms that decarbonize power and produce hydrogen. The company provides various configurations and applications of its platform, including on-site power, utility grid support, and microgrid, as well as distributed hydrogen; solid oxide-based electrolysis; solutions for long duration hydrogen-based energy storage and electrolysis technology; and carbon capture, separation, and utilization systems. It also offers technology to produce electricity, heat, hydrogen, and water. In addition, the company provides turn-key solutions, including development, engineering, procurement, construction, interconnection, and operation services. It serves various markets, including utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, commercial and hospitality, microgrids, manufacturing, industrial hydrogen, port, oil and gas, wind and solar projects, food and beverage, hydrogen for mobility and material handling, and hydrogen fuel for heat, as well as engineering, procurement, and construction firms. The company primarily operates in the United States, South Korea, and Europe. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.
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.
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