Comparing GE Vernova (NYSE:GEV) and Talen Energy (NASDAQ:TLN)

GE Vernova (NYSE:GEV) and Talen Energy (NASDAQ:TLN) are both large-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

0.4% of Talen Energy shares are owned by institutional investors. 0.2% of GE Vernova 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GE Vernova	4.52%	17.07%	3.24%
Talen Energy	8.75%	17.81%	4.52%

Analyst Ratings

This is a summary of recent recommendations for GE Vernova and Talen Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE Vernova	2	8	19	4	2.76
Talen Energy	0	3	13	1	2.88

GE Vernova presently has a consensus price target of $607.81, suggesting a potential upside of 7.51%. Talen Energy has a consensus price target of $395.64, suggesting a potential downside of 2.57%. Given GE Vernova’s higher probable upside, equities research analysts clearly believe GE Vernova is more favorable than Talen Energy.

Risk and Volatility

GE Vernova has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Talen Energy has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500.

Valuation & Earnings

This table compares GE Vernova and Talen Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GE Vernova	$34.94 billion	4.39	$1.55 billion	$6.14	92.08
Talen Energy	$2.12 billion	8.77	$998.00 million	$3.53	115.04

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

Summary

Talen Energy beats GE Vernova on 8 of the 15 factors compared between the two stocks.

About GE Vernova

GE Vernova LLC, an energy business company, generates electricity. It operates under three segments: Power, Wind, and Electrification. The Power segments generates and sells electricity through hydro, gas, nuclear, and steam power. Wind segment engages in the manufacturing and sale of wind turbine blades; and Electrification segment provides grid solutions, power conversion, solar, and storage solutions. The company was incorporated in 2023 and is based in Cambridge, Massachusetts.

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.