Analyzing Talen Energy (NASDAQ:TLN) & Excelerate Energy (NYSE:EE)

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

Institutional and Insider Ownership

21.8% of Excelerate Energy shares are owned by institutional investors. Comparatively, 0.4% of Talen Energy shares are owned by institutional investors. 1.8% of Excelerate Energy 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Excelerate Energy has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Talen Energy has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Excelerate Energy	3.19%	4.12%	2.31%
Talen Energy	-8.49%	22.58%	3.93%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Excelerate Energy	$1.23 billion	3.09	$39.20 million	$1.32	25.18
Talen Energy	$2.58 billion	5.68	-$219.00 million	($4.94)	-65.41

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

Analyst Ratings

This is a breakdown of recent ratings for Excelerate Energy and Talen Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Excelerate Energy	0	5	4	2	2.73
Talen Energy	1	2	12	0	2.73

Excelerate Energy currently has a consensus price target of $39.00, suggesting a potential upside of 17.36%. Talen Energy has a consensus price target of $438.17, suggesting a potential upside of 35.60%. Given Talen Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Talen Energy is more favorable than Excelerate Energy.

Summary

Talen Energy beats Excelerate Energy on 8 of the 15 factors compared between the two stocks.

About Excelerate Energy

Excelerate Energy, Inc. provides flexible liquefied natural gas (LNG) solutions worldwide. The company offers regasification services, including floating storage and regasification units (FSRUs), infrastructure development, and LNG and natural gas supply, procurement, and distribution services; LNG terminal services; and natural gas supply to-power projects. Excelerate Energy, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas. Excelerate Energy, Inc. is a subsidiary of Excelerate Energy Holdings, LLC.

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.