WallStSmart

Talen Energy Corporation (TLN)vsTXNM Energy, Inc. (TXNM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Talen Energy Corporation generates 54% more annual revenue ($3.37B vs $2.19B). TXNM leads profitability with a 6.7% profit margin vs -0.6%. TXNM earns a higher WallStSmart Score of 49/100 (D+).

TLN

Hold

48

out of 100

Grade: D+

Growth: 8.0Profit: 4.0Value: 4.0Quality: 5.3
Piotroski: 4/9Altman Z: 0.70

TXNM

Hold

49

out of 100

Grade: D+

Growth: 2.7Profit: 5.0Value: 3.3Quality: 3.3
Piotroski: 2/9Altman Z: 0.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TLNSignificantly Overvalued (-76.5%)

Margin of Safety

-76.5%

Fair Value

$200.88

Current Price

$386.37

$185.49 premium

UndervaluedFair: $200.88Overvalued
TXNMOvervalued (-10.8%)

Margin of Safety

-10.8%

Fair Value

$53.56

Current Price

$58.99

$5.43 premium

UndervaluedFair: $53.56Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TLN2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
78.9%10/10

Revenue surging 78.9% year-over-year

EPS GrowthGrowth
34.5%8/10

Earnings expanding 34.5% YoY

TXNM1 strengths · Avg: 8.0/10
Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

TLN4 concerns · Avg: 2.3/10
Price/BookValuation
16.2x4/10

Trading at 16.2x book value

Return on EquityProfitability
-1.9%2/10

ROE of -1.9% — below average capital efficiency

Altman Z-ScoreHealth
0.702/10

Distress zone — elevated risk

Profit MarginProfitability
-0.6%1/10

Currently unprofitable

TXNM4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Return on EquityProfitability
5.4%3/10

ROE of 5.4% — below average capital efficiency

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : TLN

The strongest argument for TLN centers on Revenue Growth, EPS Growth. Revenue growth of 78.9% demonstrates continued momentum.

Bull Case : TXNM

The strongest argument for TXNM centers on Price/Book.

Bear Case : TLN

The primary concerns for TLN are Price/Book, Return on Equity, Altman Z-Score.

Bear Case : TXNM

The primary concerns for TXNM are Revenue Growth, Return on Equity, Profit Margin. A P/E of 42.0x leaves little room for execution misses.

Key Dynamics to Monitor

TLN profiles as a hypergrowth stock while TXNM is a value play — different risk/reward profiles.

TLN carries more volatility with a beta of 1.67 — expect wider price swings.

TLN is growing revenue faster at 78.9% — sustainability is the question.

TLN generates stronger free cash flow (461M), providing more financial flexibility.

Bottom Line

TXNM scores higher overall (49/100 vs 48/100). 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.

Talen Energy Corporation

UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA

Talen Energy Corporation (Ticker: TLN) is a leading power generation and infrastructure company based in the United States, specializing in the development and operation of reliable and sustainable energy solutions. With a diverse portfolio that includes both traditional and renewable energy sources, Talen Energy is committed to supporting the evolving energy landscape while prioritizing environmental stewardship. The company is strategically positioned to meet growing electricity demand, leverage technological advancements, and enhance grid resilience, making it an attractive investment opportunity for institutional investors focused on the energy sector's transformation.

TXNM Energy, Inc.

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

TXNM Energy, Inc., provides electricity and electric services in the United States. The company is headquartered in Albuquerque, New Mexico.

Want to dig deeper into these stocks?