Reviewing Texas Pacific Land (NYSE:TPL) & Talen Energy (NASDAQ:TLN)

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

Earnings and Valuation

This table compares Texas Pacific Land 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
Texas Pacific Land	$772.40 million	25.67	$453.96 million	$20.70	41.68
Talen Energy	$2.12 billion	7.95	$998.00 million	$4.62	79.65

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Texas Pacific Land and Talen Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Pacific Land	1	1	1	0	2.00
Talen Energy	0	3	14	0	2.82

Texas Pacific Land currently has a consensus price target of $1,050.00, indicating a potential upside of 21.71%. Talen Energy has a consensus price target of $395.07, indicating a potential upside of 7.37%. Given Texas Pacific Land’s higher probable upside, equities analysts plainly believe Texas Pacific Land is more favorable than Talen Energy.

Insider and Institutional Ownership

59.9% of Texas Pacific Land shares are owned by institutional investors. Comparatively, 0.4% of Talen Energy shares are owned by institutional investors. 6.9% of Texas Pacific Land shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Texas Pacific Land	62.16%	39.47%	35.65%
Talen Energy	9.83%	13.52%	2.99%

Volatility & Risk

Texas Pacific Land has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Talen Energy has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.

Summary

Texas Pacific Land beats Talen Energy on 8 of the 14 factors compared between the two stocks.

About Texas Pacific Land

Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. The company owns a 1/128th nonparticipating perpetual oil and gas royalty interest (NPRI) under approximately 85,000 acres of land; a 1/16th NPRI under approximately 371,000 acres of land; and approximately 4,000 additional net royalty acres, total of approximately 195,000 NRA located in the western part of Texas. The Land and Resource Management segment manages surface acres of land, and oil and gas royalty interest in West Texas. This segment also engages in easements, such as transporting oil, gas and related hydrocarbons, power line and utility, and subsurface wellbore easements. In addition, this segment leases its land for processing, storage, and compression facilities and roads; and is involved in sale of materials, such as caliche, sand, and other material, as well as sells land. The Water Services and Operations segment provides full-service water offerings, including water sourcing, produced-water treatment, infrastructure development, and disposal solutions to operators in the Permian Basin. This segment also holds produced water royalties. Texas Pacific Land Corporation was founded in 1888 and is headquartered in Dallas, Texas.

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.