ATO vs. TLN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ATO and TLN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ATO’s market capitalization of 24.19 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 ATO (beta: 0.70) exhibits greater stability.
| Symbol | ATO | TLN |
|---|---|---|
| Company Name | Atmos Energy Corporation | Talen Energy Corporation |
| Country | US | US |
| Sector | Utilities | Utilities |
| Industry | Regulated Gas | Independent Power Producers |
| CEO | John Kevin Akers | Mark Allen McFarland |
| Price | 152.28 USD | 286.31 USD |
| Market Cap | 24.19 billion USD | 13.03 billion USD |
| Beta | 0.70 | 1.49 |
| Exchange | NYSE | NASDAQ |
| IPO Date | December 28, 1983 | June 2, 2023 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ATO 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
ATO
9.05%
Regulated Gas Industry
- Max
- 11.45%
- Q3
- 11.45%
- Median
- 9.01%
- Q1
- 7.53%
- Min
- 6.41%
ATO’s Return on Equity of 9.05% is on par with the norm for the Regulated Gas 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
ATO
4.73%
Regulated Gas Industry
- Max
- 8.99%
- Q3
- 5.97%
- Median
- 4.43%
- Q1
- 0.25%
- Min
- 0.00%
ATO’s Return on Invested Capital of 4.73% is in line with the norm for the Regulated Gas 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
ATO
25.35%
Regulated Gas Industry
- Max
- 25.35%
- Q3
- 14.67%
- Median
- 8.48%
- Q1
- 4.66%
- Min
- -6.69%
A Net Profit Margin of 25.35% places ATO in the upper quartile for the Regulated Gas industry, signifying strong profitability and more effective cost management than most of its peers.
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
ATO
33.30%
Regulated Gas Industry
- Max
- 45.15%
- Q3
- 28.16%
- Median
- 19.42%
- Q1
- 14.26%
- Min
- 3.90%
An Operating Profit Margin of 33.30% places ATO in the upper quartile for the Regulated Gas industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
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 | ATO | TLN |
|---|---|---|
| Return on Equity (TTM) | 9.05% | 30.49% |
| Return on Assets (TTM) | 4.21% | 9.70% |
| Return on Invested Capital (TTM) | 4.73% | 1.62% |
| Net Profit Margin (TTM) | 25.35% | 31.23% |
| Operating Profit Margin (TTM) | 33.30% | 5.60% |
| Gross Profit Margin (TTM) | 54.44% | 33.70% |
Financial Strength
Current Ratio
ATO
1.33
Regulated Gas Industry
- Max
- 1.57
- Q3
- 1.15
- Median
- 1.00
- Q1
- 0.69
- Min
- 0.38
ATO’s Current Ratio of 1.33 is in the upper quartile for the Regulated Gas industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its 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
ATO
0.65
Regulated Gas Industry
- Max
- 1.67
- Q3
- 1.53
- Median
- 1.38
- Q1
- 0.83
- Min
- 0.02
Falling into the lower quartile for the Regulated Gas industry, ATO’s Debt-to-Equity Ratio of 0.65 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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
ATO
8.02
Regulated Gas Industry
- Max
- 4.65
- Q3
- 3.07
- Median
- 2.65
- Q1
- 1.77
- Min
- 1.22
With an Interest Coverage Ratio of 8.02, ATO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Regulated Gas industry. This stems from either robust earnings or a conservative debt load.
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 | ATO | TLN |
|---|---|---|
| Current Ratio (TTM) | 1.33 | 1.62 |
| Quick Ratio (TTM) | 1.25 | 1.20 |
| Debt-to-Equity Ratio (TTM) | 0.65 | 2.54 |
| Debt-to-Asset Ratio (TTM) | 0.32 | 0.51 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.49 | 2.31 |
| Interest Coverage Ratio (TTM) | 8.02 | 0.40 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ATO 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
ATO
2.24%
Regulated Gas Industry
- Max
- 6.99%
- Q3
- 4.15%
- Median
- 4.00%
- Q1
- 2.73%
- Min
- 0.00%
ATO’s Dividend Yield of 2.24% is in the lower quartile for the Regulated Gas 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
ATO
46.20%
Regulated Gas Industry
- Max
- 87.89%
- Q3
- 74.00%
- Median
- 60.41%
- Q1
- 45.73%
- Min
- 0.00%
ATO’s Dividend Payout Ratio of 46.20% is within the typical range for the Regulated Gas 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 | ATO | TLN |
|---|---|---|
| Dividend Yield (TTM) | 2.24% | 0.00% |
| Dividend Payout Ratio (TTM) | 46.20% | 0.00% |
Valuation
Price-to-Earnings Ratio
ATO
21.32
Regulated Gas Industry
- Max
- 23.74
- Q3
- 22.05
- Median
- 16.86
- Q1
- 15.06
- Min
- 10.79
ATO’s P/E Ratio of 21.32 is within the middle range for the Regulated Gas 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
ATO
3.14
Regulated Gas Industry
- Max
- 3.70
- Q3
- 3.36
- Median
- 3.17
- Q1
- 2.55
- Min
- 2.21
ATO’s Forward PEG Ratio of 3.14 is within the middle range of its peers in the Regulated Gas 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
ATO
5.39
Regulated Gas Industry
- Max
- 3.36
- Q3
- 2.16
- Median
- 1.35
- Q1
- 1.06
- Min
- 0.32
With a P/S Ratio of 5.39, ATO trades at a valuation that eclipses even the highest in the Regulated Gas industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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
ATO
1.84
Regulated Gas Industry
- Max
- 2.11
- Q3
- 1.88
- Median
- 1.55
- Q1
- 1.24
- Min
- 1.10
ATO’s P/B Ratio of 1.84 is within the conventional range for the Regulated Gas 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 | ATO | TLN |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 21.32 | 23.07 |
| Forward PEG Ratio (TTM) | 3.14 | 0.31 |
| Price-to-Sales Ratio (P/S, TTM) | 5.39 | 7.15 |
| Price-to-Book Ratio (P/B, TTM) | 1.84 | 11.12 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -18.53 | 868.66 |
| EV-to-EBITDA (TTM) | 14.09 | 13.43 |
| EV-to-Sales (TTM) | 7.17 | 8.64 |