Talen Energy Corporation (TLN) vs Vistra Corp. (VST)

Talen Energy Corporation and Vistra Corp. are both Utilities Independent Power Producers companies. Vistra Corp. is the larger, with a market value of $46.7B against $14.8B — 3.1× the size. Talen Energy Corporation has negative trailing earnings, so its P/E is not meaningful; Vistra Corp. trades at 23.1×. Talen Energy Corporation grew revenue faster over the last twelve months: 60.8% against 3.80%. Vistra Corp. has the higher net margin (10.6% vs −5.38%) and the higher return on invested capital (9.05% vs 0.50%). Across the 19 metrics below, Vistra Corp. leads on 15 and Talen Energy Corporation on 4.

Valuation

Metric TLN VST Utilities Independent Power Producers median
P/E n/m 23.08 25.63
P/S 4.07 2.43 2.78
P/B 8.53 15.45 3.29
Price to free cash flow 31.47 19.24 —
EV/EBITDA 48.26 10.37 13.69
EV/Sales 6.78 3.42 3.62
Earnings yield (1.33%) 4.33% 2.03%
Free cash flow yield 3.18% 5.20% (1.89%)

Profitability

Metric TLN VST Utilities Independent Power Producers median
Gross margin 53.86% 37.99% 37.99%
Operating margin 2.56% 18.55% 4.83%
Net margin (5.38%) 10.55% 1.18%
Free cash flow margin 12.92% 12.62% 0.50%
Return on equity (12.82%) 75.38% 1.70%
Return on assets (1.77%) 5.02% 0.93%
Return on invested capital 0.50% 9.05% 2.93%

Growth

Metric TLN VST Utilities Independent Power Producers median
Revenue growth (TTM) 60.83% 3.80% 12.80%
EPS growth (last fiscal year) (127.11%) (68.86%) —
Revenue growth, 5-year CAGR — 9.16% 15.82%
Net income growth, 5-year CAGR — 3.41% 1.71%

Health

Metric TLN VST Utilities Independent Power Producers median
Debt to equity 5.84 3.57 0.74
Current ratio 0.78 0.97 1.21
Net debt to EBITDA 21.19 3.71 3.88

Dividend

Metric TLN VST Utilities Independent Power Producers median
Dividend yield — 1.95% —
Payout ratio — 0.22 0.17

Size

Metric TLN VST Utilities Independent Power Producers median
Market cap 14.81b 46.65b 11.01b

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