Financial Survey: Talen Energy (NASDAQ:TLN) vs. Principal Solar (OTCMKTS:PSWW)

Principal Solar (OTCMKTS:PSWW) and Talen Energy (NASDAQ:TLN) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Profitability

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

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

Valuation & Earnings

This table compares Principal Solar and Talen Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Principal Solar	N/A	N/A	N/A	N/A	N/A
Talen Energy	$2.55 billion	4.36	$613.00 million	$18.68	11.71

Talen Energy has higher revenue and earnings than Principal Solar.

Institutional & Insider Ownership

0.4% of Talen Energy shares are held by institutional investors. 39.2% of Principal Solar shares are held by insiders. Comparatively, 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 stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Principal Solar and Talen Energy, as provided by MarketBeat.

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

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

Volatility & Risk

Principal Solar has a beta of 6.41, suggesting that its share price is 541% more volatile than the S&P 500. Comparatively, Talen Energy has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Summary

Talen Energy beats Principal Solar on 8 of the 10 factors compared between the two stocks.

About Principal Solar

Principal Solar, Inc. does not have significant operations. It focuses on renewable energy and natural gas sectors. The company is headquartered in Dallas Texas.

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.