Talen Energy (NASDAQ:TLN) & CLP (OTCMKTS:CLPHY) Financial Analysis

CLP (OTCMKTS:CLPHY) and Talen Energy (NASDAQ:TLN) are both large-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for CLP and Talen Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CLP	0	0	0	0	0.00
Talen Energy	0	0	11	0	3.00

Talen Energy has a consensus price target of $247.10, suggesting a potential upside of 12.93%. Given Talen Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Talen Energy is more favorable than CLP.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CLP	$11.13 billion	1.87	$867.59 million	N/A	N/A
Talen Energy	$2.55 billion	4.36	$613.00 million	$18.68	11.71

CLP has higher revenue and earnings than Talen Energy.

Volatility and Risk

CLP has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Talen Energy has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CLP	N/A	N/A	N/A
Talen Energy	50.48%	8.59%	3.13%

Insider & Institutional Ownership

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

Summary

Talen Energy beats CLP on 10 of the 12 factors compared between the two stocks.

About CLP

CLP Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, Mainland China, India Thailand, Taiwan, and Australia. The company generates electricity through coal, gas, nuclear, and renewable resources, such as wind, hydro, and solar. It is also involved in the provision of pumped storage services, and energy and infrastructure solutions; property investment activities; and retail of electricity and gas. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong.

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.