Talen Energy (NASDAQ:TLN) and American Power Group (OTCMKTS:APGI) Critical Review

American Power Group (OTCMKTS:APGI) and Talen Energy (NASDAQ:TLN) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Volatility and Risk

American Power Group has a beta of -0.5, indicating that its share price is 150% less volatile than the S&P 500. Comparatively, Talen Energy has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Power Group	N/A	N/A	N/A
Talen Energy	9.83%	13.52%	2.99%

Analyst Ratings

This is a summary of recent recommendations for American Power Group and Talen Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Power Group	0	0	0	0	0.00
Talen Energy	0	3	11	0	2.79

Talen Energy has a consensus target price of $410.83, suggesting a potential upside of 8.10%. Given Talen Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Talen Energy is more favorable than American Power Group.

Insider & Institutional Ownership

0.4% of Talen Energy shares are owned by institutional investors. 75.8% of American Power Group 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares American Power Group and Talen Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Power Group	$2.13 million	5.08	-$1.71 million	N/A	N/A
Talen Energy	$2.12 billion	8.21	$998.00 million	$4.62	82.26

Talen Energy has higher revenue and earnings than American Power Group.

Summary

Talen Energy beats American Power Group on 11 of the 12 factors compared between the two stocks.

About American Power Group

American Power Group Corporation provides patented dual fuel conversion system for primary and back-up diesel generators, and mid-to heavy-duty vehicular diesel engines in North America and internationally. It operates through two segments, Dual Fuel Conversion Operations and Natural Gas Liquids Operations. The company's dual fuel conversion system is a fuel delivery enhancement system that converts existing diesel engines into engines, which run on diesel fuel and compressed natural gas or liquefied natural gas; diesel fuel and pipeline gas, well-head gas, or approved bio-methane; and diesel. It also provides flare capture and recovery services to oil and gas production companies. The company was formerly known as GreenMan Technologies, Inc. and changed its name to American Power Group Corporation in August 2012. American Power Group Corporation was founded in 1992 and is headquartered in Algona, Iowa.

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.