Talen Energy vs Essential Utilities
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KIRAβs take AI analyst
I put Talen Energy and Essential Utilities side by side, using each oneβs latest annual report. Here is what stands out:
- Talen Energy is the larger business, with $2.6B of revenue in fiscal 2025 against $2.5B for Essential Utilities.
- Talen Energy grew revenue faster (22.0%, against 18.6%).
- Essential Utilities kept more of each dollar of sales as operating profit (37.2% operating margin, against β3.5%).
- Talen Energy turned more of its sales into free cash flow (23.5% FCF margin, against β17.0%).
- Essential Utilities earned a higher return on the capital invested in it (6.4%, against β1.3%).
Who comes out ahead
Of the 8 measures where higher (or lower) is clearly better, how many each company leads.
Talen Energy
TLN
3/8
Revenue growthFCF marginShare count change
Essential Utilities
WTRG
5/8
Operating marginNet marginReturn on capitalReturn on equityNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | TLN FY25 | WTRG FY25 |
|---|---|---|
| Size | ||
| Market cap | $15.5B | $12.1B |
| Revenue | $2.6B | $2.5B |
| Free cash flow | $606M | β$420M |
| Net income | β$219M | $616M |
| Growth | ||
| Revenue growth | 22.0% | 18.6% |
| 5-year growth | β | 11.1% |
| Share count change | β19.1% | 2.3% |
| Profitability | ||
| Gross margin | β | β |
| Operating margin | β3.5% | 37.2% |
| Net margin | β8.5% | 24.9% |
| FCF margin | 23.5% | β17.0% |
| Return on capital | β1.3% | 6.4% |
| Return on equity | β17.7% | 9.4% |
| Balance sheet | ||
| Net debt | $6.1B | $8.1B |
| Net debt / EBITDA | 32.4x | 6.1x |
| Dividends and buybacks | $103M | $376M |
| Valuation & quality | ||
| P/E | β | 21.8x |
| Piotroski F-score | β | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.