Critical Survey: Talen Energy (NASDAQ:TLN) and EDP – Energias de Portugal (OTCMKTS:EDPFY)

EDP – Energias de Portugal (OTCMKTS:EDPFY) and Talen Energy (NASDAQ:TLN) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Earnings & Valuation

This table compares EDP – Energias de Portugal and Talen Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EDP – Energias de Portugal	$21.76 billion	N/A	$715.52 million	N/A	N/A
Talen Energy	$2.55 billion	3.84	$613.00 million	N/A	N/A

EDP – Energias de Portugal has higher revenue and earnings than Talen Energy.

Insider and Institutional Ownership

0.4% of Talen Energy shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for EDP – Energias de Portugal and Talen Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EDP – Energias de Portugal	0	0	0	0	0.00
Talen Energy	0	0	9	0	3.00

Talen Energy has a consensus target price of $205.33, suggesting a potential upside of 6.87%. Given Talen Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Talen Energy is more favorable than EDP – Energias de Portugal.

Profitability

This table compares EDP – Energias de Portugal and Talen Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EDP – Energias de Portugal	N/A	N/A	N/A
Talen Energy	41.79%	2.27%	0.82%

Summary

Talen Energy beats EDP – Energias de Portugal on 7 of the 9 factors compared between the two stocks.

About EDP – Energias de Portugal

EDP – Energias de Portugal, S.A. engages in the generation, transmission, distribution, and supply of electricity in Portugal, Spain, France, Poland, Romania, Italy, Belgium, the United Kingdom, Greece, Colombia, Brazil, North America, and internationally. It operates through Renewables, Networks, and Client Solutions & Energy Management segments. The company primarily generates and sells electricity through hydro, CCGT, coal, wind, solar, nuclear, and cogeneration and waste sources. It has an installed capacity of 28 GW; and operates 380,788 kilometers of distribution network lines. The company is also involved in the supply of natural gas. In addition, it offers engineering, laboratory tests, professional training, and energy services, as well as property management services. The company's electricity and gas customers include domestic, industrial, commercial, agricultural, and others. The company was incorporated in 1976 and is headquartered in Lisbon, Portugal.

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.