Head to Head Survey: Engie Brasil Energia (OTCMKTS:EGIEY) and Talen Energy (NASDAQ:TLN)

Engie Brasil Energia (OTCMKTS:EGIEY) and Talen Energy (NASDAQ:TLN) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Volatility & Risk

Engie Brasil Energia has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Talen Energy has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500.

Earnings and Valuation

This table compares Engie Brasil Energia and Talen Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Engie Brasil Energia	$2.15 billion	2.41	$686.94 million	$0.99	6.43
Talen Energy	$2.55 billion	4.75	$613.00 million	$18.68	12.78

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

Institutional & Insider Ownership

0.4% of Talen Energy shares are held by institutional investors. 0.2% of Talen Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Engie Brasil Energia	39.47%	27.48%	6.89%
Talen Energy	50.48%	8.59%	3.13%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Engie Brasil Energia and Talen Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Engie Brasil Energia	1	0	0	0	1.00
Talen Energy	0	0	11	0	3.00

Talen Energy has a consensus price target of $232.00, indicating a potential downside of 2.82%. Given Talen Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Talen Energy is more favorable than Engie Brasil Energia.

Summary

Talen Energy beats Engie Brasil Energia on 11 of the 14 factors compared between the two stocks.

About Engie Brasil Energia

Engie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. The company operates 76 plants, including 11 hydroelectric power plants; 1 thermal power plants; 50 wind farms; 3 biomass; 9 photovoltaic and solar power plant; and 2 small hydroelectric plants. As of December 31, 2022, it had an installed capacity of 8,453.3 megawatts. The company also transports natural gas through 4,500 km of gas pipelines. In addition, it manufactures, wholesales, retails, operates, and maintains solar panels. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company was founded in 2005 and is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltda.

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.