Financial Comparison: Talen Energy (NASDAQ:TLN) versus Expand Energy (NASDAQ:EXE)

Talen Energy (NASDAQ:TLN) and Expand Energy (NASDAQ:EXE) are both large-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Talen Energy	8.75%	17.81%	4.52%
Expand Energy	2.41%	5.76%	3.73%

Volatility and Risk

Talen Energy has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500. Comparatively, Expand Energy has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Talen Energy and Expand Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talen Energy	0	3	13	0	2.81
Expand Energy	0	3	18	2	2.96

Talen Energy presently has a consensus target price of $391.31, indicating a potential upside of 2.79%. Expand Energy has a consensus target price of $127.62, indicating a potential upside of 22.25%. Given Expand Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Expand Energy is more favorable than Talen Energy.

Institutional and Insider Ownership

0.4% of Talen Energy shares are held by institutional investors. Comparatively, 97.9% of Expand Energy shares are held by institutional investors. 0.2% of Talen Energy shares are held by insiders. Comparatively, 0.2% of Expand Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talen Energy	$2.13 billion	8.17	$998.00 million	$3.53	107.84
Expand Energy	$4.24 billion	5.87	-$714.00 million	$0.39	267.67

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

Summary

Expand Energy beats Talen Energy on 8 of the 15 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 Expand Energy

Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.