NRG vs. TLN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at NRG and TLN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | NRG | TLN |
|---|---|---|
| Company Name | NRG Energy, Inc. | Talen Energy Corporation |
| Country | United States | United States |
| GICS Sector | Utilities | Utilities |
| GICS Industry | Electric Utilities | Independent Power and Renewable Electricity Producers |
| Market Capitalization | 32.16 billion USD | 20.03 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | December 2, 2003 | June 2, 2023 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of NRG 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.
Historical Performance at a Glance
| Symbol | NRG | TLN |
|---|---|---|
| 5-Day Price Return | 0.57% | 5.55% |
| 13-Week Price Return | 4.98% | 57.12% |
| 26-Week Price Return | 74.19% | 119.80% |
| 52-Week Price Return | 79.78% | 142.48% |
| Month-to-Date Return | 2.67% | 2.04% |
| Year-to-Date Return | 84.31% | 115.45% |
| 10-Day Avg. Volume | 2.52M | 0.74M |
| 3-Month Avg. Volume | 2.84M | 1.11M |
| 3-Month Volatility | 42.67% | 59.65% |
| Beta | 1.26 | 1.49 |
Profitability
Return on Equity (TTM)
NRG
20.75%
Electric Utilities Industry
- Max
- 25.46%
- Q3
- 14.70%
- Median
- 10.64%
- Q1
- 6.99%
- Min
- 0.02%
In the upper quartile for the Electric Utilities industry, NRG’s Return on Equity of 20.75% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
TLN
12.06%
Independent Power and Renewable Electricity Producers Industry
- Max
- 25.91%
- Q3
- 13.69%
- Median
- 7.86%
- Q1
- 4.13%
- Min
- -6.69%
TLN’s Return on Equity of 12.06% is on par with the norm for the Independent Power and Renewable Electricity Producers industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
NRG
1.78%
Electric Utilities Industry
- Max
- 29.56%
- Q3
- 16.54%
- Median
- 11.20%
- Q1
- 7.30%
- Min
- 0.01%
Falling into the lower quartile for the Electric Utilities industry, NRG’s Net Profit Margin of 1.78% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
TLN
8.75%
Independent Power and Renewable Electricity Producers Industry
- Max
- 23.58%
- Q3
- 14.30%
- Median
- 8.59%
- Q1
- 5.08%
- Min
- -2.06%
TLN’s Net Profit Margin of 8.75% is aligned with the median group of its peers in the Independent Power and Renewable Electricity Producers industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
NRG
3.87%
Electric Utilities Industry
- Max
- 38.77%
- Q3
- 25.54%
- Median
- 18.87%
- Q1
- 14.12%
- Min
- 0.02%
NRG’s Operating Profit Margin of 3.87% is in the lower quartile for the Electric Utilities industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
TLN
6.27%
Independent Power and Renewable Electricity Producers Industry
- Max
- 31.45%
- Q3
- 22.28%
- Median
- 16.08%
- Q1
- 11.37%
- Min
- 4.97%
TLN’s Operating Profit Margin of 6.27% is in the lower quartile for the Independent Power and Renewable Electricity Producers industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | NRG | TLN |
|---|---|---|
| Return on Equity (TTM) | 20.75% | 12.06% |
| Return on Assets (TTM) | 2.16% | 3.03% |
| Net Profit Margin (TTM) | 1.78% | 8.75% |
| Operating Profit Margin (TTM) | 3.87% | 6.27% |
| Gross Profit Margin (TTM) | 15.25% | 62.61% |
Financial Strength
Current Ratio (MRQ)
NRG
0.93
Electric Utilities Industry
- Max
- 1.82
- Q3
- 1.23
- Median
- 0.98
- Q1
- 0.72
- Min
- 0.13
NRG’s Current Ratio of 0.93 aligns with the median group of the Electric Utilities industry, indicating that its short-term liquidity is in line with its sector peers.
TLN
1.84
Independent Power and Renewable Electricity Producers Industry
- Max
- 1.84
- Q3
- 1.25
- Median
- 0.81
- Q1
- 0.66
- Min
- 0.27
TLN’s Current Ratio of 1.84 is in the upper quartile for the Independent Power and Renewable Electricity Producers industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
NRG
4.78
Electric Utilities Industry
- Max
- 3.72
- Q3
- 1.90
- Median
- 1.27
- Q1
- 0.62
- Min
- 0.00
With a Debt-to-Equity Ratio of 4.78, NRG operates with exceptionally high leverage compared to the Electric Utilities industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
TLN
2.46
Independent Power and Renewable Electricity Producers Industry
- Max
- 4.71
- Q3
- 2.80
- Median
- 1.91
- Q1
- 1.17
- Min
- 0.18
TLN’s Debt-to-Equity Ratio of 2.46 is typical for the Independent Power and Renewable Electricity 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 (TTM)
NRG
4.43
Electric Utilities Industry
- Max
- 18.68
- Q3
- 9.89
- Median
- 3.33
- Q1
- 2.62
- Min
- -3.31
NRG’s Interest Coverage Ratio of 4.43 is positioned comfortably within the norm for the Electric Utilities industry, indicating a standard and healthy capacity to cover its interest payments.
TLN
28.78
Independent Power and Renewable Electricity Producers Industry
- Max
- 10.03
- Q3
- 7.41
- Median
- 2.59
- Q1
- 1.32
- Min
- -1.62
With an Interest Coverage Ratio of 28.78, TLN demonstrates a superior capacity to service its debt, placing it well above the typical range for the Independent Power and Renewable Electricity Producers industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | NRG | TLN |
|---|---|---|
| Current Ratio (MRQ) | 0.93 | 1.84 |
| Quick Ratio (MRQ) | 0.77 | 1.34 |
| Debt-to-Equity Ratio (MRQ) | 4.78 | 2.46 |
| Interest Coverage Ratio (TTM) | 4.43 | 28.78 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
NRG
1.26%
Electric Utilities Industry
- Max
- 6.61%
- Q3
- 4.66%
- Median
- 3.55%
- Q1
- 2.23%
- Min
- 0.00%
NRG’s Dividend Yield of 1.26% is in the lower quartile for the Electric Utilities industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
TLN
0.00%
Independent Power and Renewable Electricity Producers Industry
- Max
- 7.43%
- Q3
- 5.56%
- Median
- 3.97%
- Q1
- 2.26%
- 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 (TTM)
NRG
13.61%
Electric Utilities Industry
- Max
- 140.33%
- Q3
- 84.46%
- Median
- 60.94%
- Q1
- 31.83%
- Min
- 0.00%
NRG’s Dividend Payout Ratio of 13.61% is in the lower quartile for the Electric Utilities industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
TLN
0.00%
Independent Power and Renewable Electricity Producers Industry
- Max
- 113.12%
- Q3
- 82.87%
- Median
- 49.83%
- Q1
- 22.46%
- 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 | NRG | TLN |
|---|---|---|
| Dividend Yield (TTM) | 1.26% | 0.00% |
| Dividend Payout Ratio (TTM) | 13.61% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
NRG
62.11
Electric Utilities Industry
- Max
- 34.39
- Q3
- 21.23
- Median
- 15.47
- Q1
- 10.17
- Min
- 3.08
At 62.11, NRG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Electric Utilities industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
TLN
107.13
Independent Power and Renewable Electricity Producers Industry
- Max
- 43.87
- Q3
- 23.80
- Median
- 10.75
- Q1
- 8.70
- Min
- 4.34
At 107.13, TLN’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Independent Power and Renewable Electricity Producers industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Price-to-Sales Ratio (TTM)
NRG
1.10
Electric Utilities Industry
- Max
- 6.03
- Q3
- 3.06
- Median
- 1.89
- Q1
- 1.06
- Min
- 0.00
NRG’s P/S Ratio of 1.10 aligns with the market consensus for the Electric Utilities industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
TLN
9.37
Independent Power and Renewable Electricity Producers Industry
- Max
- 7.59
- Q3
- 3.75
- Median
- 2.31
- Q1
- 0.81
- Min
- 0.42
With a P/S Ratio of 9.37, TLN trades at a valuation that eclipses even the highest in the Independent Power and Renewable Electricity Producers industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
NRG
13.72
Electric Utilities Industry
- Max
- 2.97
- Q3
- 1.86
- Median
- 1.46
- Q1
- 1.01
- Min
- 0.27
At 13.72, NRG’s P/B Ratio is at an extreme premium to the Electric Utilities industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
TLN
10.62
Independent Power and Renewable Electricity Producers Industry
- Max
- 3.43
- Q3
- 2.06
- Median
- 1.40
- Q1
- 0.88
- Min
- 0.33
At 10.62, TLN’s P/B Ratio is at an extreme premium to the Independent Power and Renewable Electricity Producers industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | NRG | TLN |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 62.11 | 107.13 |
| Price-to-Sales Ratio (TTM) | 1.10 | 9.37 |
| Price-to-Book Ratio (MRQ) | 13.72 | 10.62 |
| Price-to-Free Cash Flow Ratio (TTM) | 21.95 | 108.88 |