Enlight Renewable Energy (NASDAQ:ENLT – Get Free Report) and Talen Energy (NASDAQ:TLN – Get Free Report) are both large-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Risk and Volatility
Enlight Renewable Energy has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Talen Energy has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.
Valuation & Earnings
This table compares Enlight Renewable Energy and Talen Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enlight Renewable Energy | $582.26 million | 21.87 | $132.10 million | $0.43 | 249.81 |
| Talen Energy | $2.58 billion | 6.80 | -$219.00 million | ($0.67) | -577.31 |
Enlight Renewable Energy has higher earnings, but lower revenue than Talen Energy. Talen Energy is trading at a lower price-to-earnings ratio than Enlight Renewable Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Enlight Renewable Energy and Talen Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enlight Renewable Energy | 9.47% | 2.48% | 0.61% |
| Talen Energy | -0.63% | 41.58% | 6.00% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Enlight Renewable Energy and Talen Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enlight Renewable Energy | 2 | 2 | 3 | 0 | 2.14 |
| Talen Energy | 0 | 3 | 12 | 0 | 2.80 |
Enlight Renewable Energy currently has a consensus price target of $63.17, suggesting a potential downside of 41.20%. Talen Energy has a consensus price target of $448.58, suggesting a potential upside of 15.97%. Given Talen Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Talen Energy is more favorable than Enlight Renewable Energy.
Insider & Institutional Ownership
38.9% of Enlight Renewable Energy shares are owned by institutional investors. Comparatively, 0.4% of Talen Energy shares are owned by institutional investors. 0.8% of Talen Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Talen Energy beats Enlight Renewable Energy on 8 of the 14 factors compared between the two stocks.
About Enlight Renewable Energy
Enlight Renewable Energy Ltd operates a renewable energy platform in Israel, Central-Eastern Europe, Western Europe, and the United States. The company develops, finances, constructs, owns, and operates utility-scale renewable energy projects. It develops wind energy and solar energy projects, as well as energy storage projects. The company was incorporated in 1981 and is headquartered in Rosh Haayin, Israel.
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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