WallStSmart

Stem Inc (STEM)vsTalen Energy Corporation (TLN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Talen Energy Corporation generates 2018% more annual revenue ($3.24B vs $152.75M). STEM leads profitability with a 94.2% profit margin vs -0.7%. TLN earns a higher WallStSmart Score of 48/100 (D+).

STEM

Hold

42

out of 100

Grade: D

Growth: 2.7Profit: 4.0Value: 6.7Quality: 5.0
Piotroski: 5/9Altman Z: -4.55

TLN

Hold

48

out of 100

Grade: D+

Growth: 8.0Profit: 4.0Value: 5.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.29
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

STEMUndervalued (+65.9%)

Margin of Safety

+65.9%

Fair Value

$33.73

Current Price

$9.04

$24.69 discount

UndervaluedFair: $33.73Overvalued

Intrinsic value data unavailable for TLN.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

STEM2 strengths · Avg: 10.0/10
Profit MarginProfitability
94.2%10/10

Keeps 94 of every $100 in revenue as profit

Debt/EquityHealth
-1.2410/10

Conservative balance sheet, low leverage

TLN2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
96.7%10/10

Revenue surging 96.7% year-over-year

EPS GrowthGrowth
34.5%8/10

Earnings expanding 34.5% YoY

Areas to Watch

STEM4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$68.97M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-5921.0%2/10

ROE of -5921.0% — below average capital efficiency

Revenue GrowthGrowth
-10.8%2/10

Revenue declined 10.8%

TLN4 concerns · Avg: 2.8/10
Price/BookValuation
15.4x4/10

Trading at 15.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-2.0%2/10

ROE of -2.0% — below average capital efficiency

Altman Z-ScoreHealth
0.292/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : STEM

The strongest argument for STEM centers on Profit Margin, Debt/Equity. Profitability is solid with margins at 94.2% and operating margin at -37.5%.

Bull Case : TLN

The strongest argument for TLN centers on Revenue Growth, EPS Growth. Revenue growth of 96.7% demonstrates continued momentum.

Bear Case : STEM

The primary concerns for STEM are EPS Growth, Market Cap, Return on Equity.

Bear Case : TLN

The primary concerns for TLN are Price/Book, Piotroski F-Score, Return on Equity. Debt-to-equity of 6.34 is elevated, increasing financial risk.

Key Dynamics to Monitor

STEM profiles as a declining stock while TLN is a hypergrowth play — different risk/reward profiles.

TLN carries more volatility with a beta of 1.60 — expect wider price swings.

TLN is growing revenue faster at 96.7% — sustainability is the question.

TLN generates stronger free cash flow (392M), providing more financial flexibility.

Bottom Line

TLN scores higher overall (48/100 vs 42/100) and 96.7% revenue growth. STEM offers better value entry with a 65.9% margin of safety. Both earn "Hold" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Stem Inc

UTILITIES · UTILITIES - RENEWABLE · USA

Stem, Inc. is an energy technology company in the United States. The company is headquartered in Millbrae, California.

Talen Energy Corporation

UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA

Talen Energy Corporation (Ticker: TLN) is a prominent power generation and infrastructure firm based in the United States, focused on delivering reliable and sustainable energy solutions through a diverse portfolio that encompasses both traditional and renewable sources. The company's strategic initiatives are aimed at addressing the increasing demand for electricity while enhancing environmental sustainability and grid resilience. With a commitment to innovation and technological advancement, Talen Energy is well-positioned to capitalize on the evolving energy landscape, making it an appealing investment opportunity for institutional investors seeking exposure to the transition toward cleaner energy alternatives.

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