Analyzing Summer Energy (OTCMKTS:SUME) & Talen Energy (OTCMKTS:TLNE)

Summer Energy (OTCMKTS:SUME) and Talen Energy (OTCMKTS:TLNE) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Insider & Institutional Ownership

0.4% of Talen Energy shares are held by institutional investors. 56.8% of Summer Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summer Energy	$239.88 million	0.07	$13.74 million	N/A	N/A
Talen Energy	$2.55 billion	0.00	$613.00 million	N/A	N/A

Talen Energy has higher revenue and earnings than Summer Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Summer Energy	N/A	N/A	N/A
Talen Energy	N/A	1.87%	0.67%

Analyst Recommendations

This is a breakdown of current recommendations for Summer Energy and Talen Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summer Energy	0	0	0	0	N/A
Talen Energy	0	0	3	0	3.00

Talen Energy has a consensus price target of $101.00, suggesting a potential upside of ∞. Given Talen Energy’s higher possible upside, analysts plainly believe Talen Energy is more favorable than Summer Energy.

Summary

Talen Energy beats Summer Energy on 7 of the 8 factors compared between the two stocks.

About Summer Energy

Summer Energy Holdings, Inc., through its subsidiaries, operates as a retail electric provider in Texas, Massachusetts, New Hampshire, Ohio, and Illinois. It procures wholesale energy and resells to commercial and residential customers. The company was founded in 2011 and is headquartered in Houston, Texas.

About Talen Energy

Talen Energy Corporation, an independent power producer and infrastructure company, produces and sells electricity, capacity, and ancillary services into wholesale power markets in the United States. The company operates nuclear, fossil, solar, and coal power plants. It is also developing battery storage projects. The company owns and operates approximately 10.7 GW of power infrastructure. Talen Energy Corporation is headquartered in Houston, Texas.