WallStSmart

Pinnacle West Capital Corp (PNW)vsTalen Energy Corporation (TLN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Pinnacle West Capital Corp generates 62% more annual revenue ($5.46B vs $3.37B). PNW leads profitability with a 12.0% profit margin vs -0.6%. PNW earns a higher WallStSmart Score of 55/100 (C-).

PNW

Buy

55

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 4.0Quality: 2.8
Piotroski: 1/9Altman Z: 0.71

TLN

Hold

48

out of 100

Grade: D+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PNWFair Value (-2.9%)

Margin of Safety

-2.9%

Fair Value

$93.31

Current Price

$99.25

$5.94 premium

UndervaluedFair: $93.31Overvalued
TLNSignificantly Overvalued (-76.5%)

Margin of Safety

-76.5%

Fair Value

$200.88

Current Price

$386.37

$185.49 premium

UndervaluedFair: $200.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PNW1 strengths · Avg: 8.0/10
Price/BookValuation
1.7x8/10

Reasonable price relative to book value

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

Areas to Watch

PNW4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.6%4/10

0.6% earnings growth

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.012/10

Expensive relative to growth rate

Free Cash FlowQuality
$-393.06M2/10

Negative free cash flow — burning cash

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

Comparative Analysis Report

WallStSmart Research

Bull Case : PNW

The strongest argument for PNW centers on Price/Book. Revenue growth of 11.4% demonstrates continued momentum.

Bull Case : TLN

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

Bear Case : PNW

The primary concerns for PNW are EPS Growth, Piotroski F-Score, PEG Ratio.

Bear Case : TLN

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

Key Dynamics to Monitor

PNW profiles as a value stock while TLN is a hypergrowth 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

PNW scores higher overall (55/100 vs 48/100) and 11.4% revenue growth. Both earn "Buy" 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.

Pinnacle West Capital Corp

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Pinnacle West Capital is a utility holding company that owns Arizona Public Service and Bright Canyon Energy.

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.

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