AEE vs. TLN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AEE and TLN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AEE’s market capitalization of 26.57 billion USD is substantially larger than TLN’s 13.03 billion USD, indicating a significant difference in their market valuations.
TLN carries a higher beta at 1.49, indicating it’s more sensitive to market moves, while AEE (beta: 0.51) exhibits greater stability.
| Symbol | AEE | TLN |
|---|---|---|
| Company Name | Ameren Corporation | Talen Energy Corporation |
| Country | US | US |
| Sector | Utilities | Utilities |
| Industry | Regulated Electric | Independent Power Producers |
| CEO | Martin J. Lyons Jr. | Mark Allen McFarland |
| Price | 96.02 USD | 286.31 USD |
| Market Cap | 26.57 billion USD | 13.03 billion USD |
| Beta | 0.51 | 1.49 |
| Exchange | NYSE | NASDAQ |
| IPO Date | January 2, 1998 | June 2, 2023 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AEE and TLN by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AEE
10.15%
Regulated Electric Industry
- Max
- 18.07%
- Q3
- 12.49%
- Median
- 10.00%
- Q1
- 8.48%
- Min
- 5.02%
AEE’s Return on Equity of 10.15% is on par with the norm for the Regulated Electric industry, indicating its profitability relative to shareholder equity is typical for the sector.
TLN
30.49%
Independent Power Producers Industry
- Max
- 47.87%
- Q3
- 44.92%
- Median
- 37.16%
- Q1
- 23.52%
- Min
- 2.99%
TLN’s Return on Equity of 30.49% is on par with the norm for the Independent Power Producers industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
AEE
3.42%
Regulated Electric Industry
- Max
- 5.26%
- Q3
- 4.57%
- Median
- 3.97%
- Q1
- 3.33%
- Min
- 1.92%
AEE’s Return on Invested Capital of 3.42% is in line with the norm for the Regulated Electric industry, reflecting a standard level of efficiency in generating profits from its capital base.
TLN
1.62%
Independent Power Producers Industry
- Max
- 12.59%
- Q3
- 7.91%
- Median
- 1.68%
- Q1
- 1.19%
- Min
- -2.93%
TLN’s Return on Invested Capital of 1.62% is in line with the norm for the Independent Power Producers industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
AEE
15.31%
Regulated Electric Industry
- Max
- 22.24%
- Q3
- 15.98%
- Median
- 13.10%
- Q1
- 11.03%
- Min
- 3.79%
AEE’s Net Profit Margin of 15.31% is aligned with the median group of its peers in the Regulated Electric industry. This indicates its ability to convert revenue into profit is typical for the sector.
TLN
31.23%
Independent Power Producers Industry
- Max
- 33.58%
- Q3
- 32.41%
- Median
- 13.40%
- Q1
- 3.33%
- Min
- -15.14%
TLN’s Net Profit Margin of 31.23% is aligned with the median group of its peers in the Independent Power Producers industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AEE
19.93%
Regulated Electric Industry
- Max
- 31.57%
- Q3
- 25.65%
- Median
- 21.93%
- Q1
- 17.87%
- Min
- 8.99%
AEE’s Operating Profit Margin of 19.93% is around the midpoint for the Regulated Electric industry, indicating that its efficiency in managing core business operations is typical for the sector.
TLN
5.60%
Independent Power Producers Industry
- Max
- 21.41%
- Q3
- 17.04%
- Median
- 9.17%
- Q1
- 6.05%
- Min
- 5.60%
TLN’s Operating Profit Margin of 5.60% is in the lower quartile for the Independent Power Producers industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | AEE | TLN |
|---|---|---|
| Return on Equity (TTM) | 10.15% | 30.49% |
| Return on Assets (TTM) | 2.65% | 9.70% |
| Return on Invested Capital (TTM) | 3.42% | 1.62% |
| Net Profit Margin (TTM) | 15.31% | 31.23% |
| Operating Profit Margin (TTM) | 19.93% | 5.60% |
| Gross Profit Margin (TTM) | 61.78% | 33.70% |
Financial Strength
Current Ratio
AEE
0.86
Regulated Electric Industry
- Max
- 1.48
- Q3
- 1.06
- Median
- 0.86
- Q1
- 0.73
- Min
- 0.28
AEE’s Current Ratio of 0.86 aligns with the median group of the Regulated Electric industry, indicating that its short-term liquidity is in line with its sector peers.
TLN
1.62
Independent Power Producers Industry
- Max
- 1.85
- Q3
- 1.84
- Median
- 1.62
- Q1
- 0.96
- Min
- 0.84
TLN’s Current Ratio of 1.62 aligns with the median group of the Independent Power Producers industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AEE
0.00
Regulated Electric Industry
- Max
- 2.38
- Q3
- 1.97
- Median
- 1.65
- Q1
- 1.28
- Min
- 0.27
At 0.00, AEE’s Debt-to-Equity Ratio is unusually low for the Regulated Electric industry. This highlights a conservative capital structure, suggesting the company prioritizes financial stability over aggressive growth funded by debt.
TLN
2.54
Independent Power Producers Industry
- Max
- 3.96
- Q3
- 3.42
- Median
- 2.61
- Q1
- 1.23
- Min
- 0.64
TLN’s Debt-to-Equity Ratio of 2.54 is typical for the Independent Power Producers industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
AEE
2.30
Regulated Electric Industry
- Max
- 3.07
- Q3
- 2.63
- Median
- 2.41
- Q1
- 2.30
- Min
- 1.87
AEE’s Interest Coverage Ratio of 2.30 is positioned comfortably within the norm for the Regulated Electric industry, indicating a standard and healthy capacity to cover its interest payments.
TLN
0.40
Independent Power Producers Industry
- Max
- 4.38
- Q3
- 3.24
- Median
- 1.20
- Q1
- 0.44
- Min
- -1.77
TLN’s Interest Coverage Ratio of 0.40 is a critical concern. A value below 1.0 means operating earnings are insufficient to cover interest expenses, indicating severe financial strain and high default risk.
Financial Strength at a Glance
| Symbol | AEE | TLN |
|---|---|---|
| Current Ratio (TTM) | 0.86 | 1.62 |
| Quick Ratio (TTM) | 0.62 | 1.20 |
| Debt-to-Equity Ratio (TTM) | 0.00 | 2.54 |
| Debt-to-Asset Ratio (TTM) | 0.00 | 0.51 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.00 | 2.31 |
| Interest Coverage Ratio (TTM) | 2.30 | 0.40 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AEE and TLN. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AEE
2.87%
Regulated Electric Industry
- Max
- 6.60%
- Q3
- 4.03%
- Median
- 3.30%
- Q1
- 3.06%
- Min
- 0.00%
AEE’s Dividend Yield of 2.87% is in the lower quartile for the Regulated Electric industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
TLN
0.00%
Independent Power Producers Industry
- Max
- 12.31%
- Q3
- 1.36%
- Median
- 0.46%
- Q1
- 0.00%
- Min
- 0.00%
TLN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio
AEE
60.08%
Regulated Electric Industry
- Max
- 123.06%
- Q3
- 69.07%
- Median
- 62.27%
- Q1
- 52.66%
- Min
- 0.00%
AEE’s Dividend Payout Ratio of 60.08% is within the typical range for the Regulated Electric industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
TLN
0.00%
Independent Power Producers Industry
- Max
- 233.96%
- Q3
- 32.48%
- Median
- 25.36%
- Q1
- 5.20%
- Min
- 0.00%
TLN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | AEE | TLN |
|---|---|---|
| Dividend Yield (TTM) | 2.87% | 0.00% |
| Dividend Payout Ratio (TTM) | 60.08% | 0.00% |
Valuation
Price-to-Earnings Ratio
AEE
21.43
Regulated Electric Industry
- Max
- 26.46
- Q3
- 21.71
- Median
- 19.07
- Q1
- 17.74
- Min
- 12.74
AEE’s P/E Ratio of 21.43 is within the middle range for the Regulated Electric industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
TLN
23.07
Independent Power Producers Industry
- Max
- 27.32
- Q3
- 26.49
- Median
- 23.81
- Q1
- 10.35
- Min
- 3.54
TLN’s P/E Ratio of 23.07 is within the middle range for the Independent Power Producers industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AEE
2.80
Regulated Electric Industry
- Max
- 4.21
- Q3
- 3.10
- Median
- 2.78
- Q1
- 2.34
- Min
- 1.46
AEE’s Forward PEG Ratio of 2.80 is within the middle range of its peers in the Regulated Electric industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
TLN
0.31
Independent Power Producers Industry
- Max
- 5.73
- Q3
- 4.40
- Median
- 2.18
- Q1
- 1.13
- Min
- 0.32
TLN’s Forward PEG Ratio of 0.31 is below the typical range for the Independent Power Producers industry. This is a strong indicator that the stock may be undervalued, as its price appears low given its future growth prospects.
Price-to-Sales Ratio
AEE
3.36
Regulated Electric Industry
- Max
- 3.88
- Q3
- 3.19
- Median
- 2.68
- Q1
- 1.96
- Min
- 0.27
AEE’s P/S Ratio of 3.36 is in the upper echelon for the Regulated Electric industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
TLN
7.15
Independent Power Producers Industry
- Max
- 3.66
- Q3
- 3.17
- Median
- 1.99
- Q1
- 1.36
- Min
- 0.62
With a P/S Ratio of 7.15, TLN trades at a valuation that eclipses even the highest in the Independent Power Producers industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
AEE
2.12
Regulated Electric Industry
- Max
- 2.95
- Q3
- 2.37
- Median
- 1.89
- Q1
- 1.43
- Min
- 0.55
AEE’s P/B Ratio of 2.12 is within the conventional range for the Regulated Electric industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
TLN
11.12
Independent Power Producers Industry
- Max
- 13.74
- Q3
- 11.59
- Median
- 7.05
- Q1
- 1.63
- Min
- 1.18
TLN’s P/B Ratio of 11.12 is within the conventional range for the Independent Power Producers industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AEE | TLN |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 21.43 | 23.07 |
| Forward PEG Ratio (TTM) | 2.80 | 0.31 |
| Price-to-Sales Ratio (P/S, TTM) | 3.36 | 7.15 |
| Price-to-Book Ratio (P/B, TTM) | 2.12 | 11.12 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -14.65 | 868.66 |
| EV-to-EBITDA (TTM) | 7.41 | 13.43 |
| EV-to-Sales (TTM) | 3.36 | 8.64 |