Analyzing Brookfield Renewable (NYSE:BEPC) & Talen Energy (NASDAQ:TLN)

Brookfield Renewable (NYSE:BEPC) and Talen Energy (NASDAQ:TLN) are both mid-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Brookfield Renewable and Talen Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Renewable	0	0	2	0	3.00
Talen Energy	0	0	12	0	3.00

Brookfield Renewable currently has a consensus price target of $32.50, suggesting a potential upside of 12.44%. Talen Energy has a consensus price target of $241.36, suggesting a potential upside of 21.23%. Given Talen Energy’s higher probable upside, analysts clearly believe Talen Energy is more favorable than Brookfield Renewable.

Insider & Institutional Ownership

75.1% of Brookfield Renewable shares are held by institutional investors. Comparatively, 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Renewable	$4.14 billion	1.01	$236.00 million	($0.89)	-32.48
Talen Energy	$2.07 billion	4.41	$613.00 million	$17.41	11.44

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

Risk & Volatility

Brookfield Renewable has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Talen Energy has a beta of 2, meaning that its stock price is 100% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brookfield Renewable	-0.15%	-0.06%	-0.02%
Talen Energy	50.48%	8.59%	3.13%

Summary

Talen Energy beats Brookfield Renewable on 11 of the 13 factors compared between the two stocks.

About Brookfield Renewable

Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.

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.