PNW vs. TLN: Pinnacle West Capital vs. Talen Energy Stock Comparison

Company Profile

Pinnacle West Capital (PNW) and Talen Energy (TLN) both fall under the Utilities industry group, but PNW is classified in Electric Utilities while TLN is classified in Independent Power and Renewable Electricity Producers.

Pinnacle West Capital (PNW) has more than two decades of public-market history since February 21, 1973, whereas Talen Energy (TLN) listed on June 2, 2023 and has a much shorter record to draw on.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Talen Energy (TLN) has an aggressive beta of 1.53, indicating higher sensitivity to broad-market moves, while Pinnacle West Capital (PNW) is defensive at 0.48 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Talen Energy (TLN) reports a negative ROE of -16.54%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Pinnacle West Capital (PNW) reports 9.09%, ranking against industry peers normally.

Talen Energy (TLN) reports a negative net margin of -5.67%, usually indicating a net loss over the period. Meanwhile Pinnacle West Capital (PNW) reports 11.59%, ranking against industry peers normally.

Pinnacle West Capital (PNW) at 31.70% operates in the top operating margin quartile, ahead of Talen Energy (TLN) at 17.35%, which runs around its industry’s norm.

Profitability Metrics

Growth

Talen Energy (TLN) at 26.68% sits in the top revenue growth quartile, while Pinnacle West Capital (PNW) at 4.20% is closer to the peer norm — faster top-line expansion for TLN.

Pinnacle West Capital (PNW) at -3.63% is around its peer norm for EPS growth, while Talen Energy (TLN) at -127.11% falls below its industry range, a notably weak earnings reading.

Growth Metrics

Financial Strength

Both Pinnacle West Capital (PNW) at 0.71 and Talen Energy (TLN) at 0.89 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

Both balance sheets lean debt-heavy versus peers, but TLN is more stretched: Pinnacle West Capital (PNW) at 2.26 sits in the higher-leverage quartile and Talen Energy (TLN) at 5.97 is above its industry benchmark range.

Financial Strength Metrics

Dividends

Talen Energy (TLN) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Pinnacle West Capital (PNW) reports a yield of 3.51%, ranking against industry peers normally.

Talen Energy (TLN) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Pinnacle West Capital (PNW) reports a payout of 68.42%, ranking against industry peers normally.

Dividend Metrics

Valuation

An earnings multiple is available for just one side: Pinnacle West Capital (PNW) trades at 19.59 times trailing earnings, ranked against its peers, while Talen Energy (TLN) has no P/E ratio this period.

On P/S ratio, both Pinnacle West Capital (PNW) at 2.21 and Talen Energy (TLN) at 3.29 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

Pinnacle West Capital (PNW) at 1.69 sits near its industry’s typical P/B ratio, while Talen Energy (TLN) at 10.14 prices above its benchmark range — TLN looks rich relative to book.

Valuation Metrics