Siemens Energy (OTCMKTS:SMNEY – Get Free Report) and Talen Energy (NASDAQ:TLN – Get Free Report) are both large-cap energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.
Valuation and Earnings
This table compares Siemens Energy and Talen Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Siemens Energy | $43.21 billion | 3.48 | $1.56 billion | $1.77 | 99.23 |
| Talen Energy | $2.58 billion | 5.97 | -$219.00 million | ($4.94) | -68.69 |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Siemens Energy and Talen Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Siemens Energy | 0 | 3 | 7 | 2 | 2.92 |
| Talen Energy | 1 | 2 | 12 | 0 | 2.73 |
Talen Energy has a consensus price target of $437.17, indicating a potential upside of 28.84%. Given Talen Energy’s higher probable upside, analysts clearly believe Talen Energy is more favorable than Siemens Energy.
Profitability
This table compares Siemens Energy and Talen Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Siemens Energy | 4.75% | 18.48% | 3.50% |
| Talen Energy | -8.49% | 22.58% | 3.93% |
Volatility & Risk
Siemens Energy has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500. Comparatively, Talen Energy has a beta of 2.15, suggesting that its stock price is 115% more volatile than the S&P 500.
Insider and Institutional Ownership
0.4% of Talen Energy shares are held by institutional investors. 0.8% of Talen Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Talen Energy beats Siemens Energy on 8 of the 15 factors compared between the two stocks.
About Siemens Energy
Siemens Energy AG operates as an energy technology company worldwide. It operates through Gas Services, Grid Technologies, Transformation of Industry, and Siemens Gamesa segments. The company provides gas and steam turbines, generators, and heat pumps, as well as performance enhancement, maintenance, customer training, and professional consulting services for central and distributed power generation; and high voltage direct current transmission systems, offshore windfarm grid connections, transformers, flexible alternating current transmission systems, high voltage substations, air and gas-insulated switchgears, digital grid solutions and components, and storage solutions. It also offers electrolyzers, industrial steam turbines, industrial generators, turbo and reciprocating compressors, compressor trains, and other systems and solutions; onshore and onshore wind turbines; design, engineering, manufacturing, and installation solutions for onshore markets; offshore wind turbine equipment design, manufacturing, and installation solutions; and operation and maintenance services for wind farms. The company serves utilities, independent power producers, project developers, oil and gas, transmission and distribution system operators, and industrial and infrastructure customers. Siemens Energy AG was founded in 1866 and is based in Munich, Germany.
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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