WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Pinnacle West Capital Corp generates 48% more annual revenue ($5.55B vs $3.74B). PNW leads profitability with a 11.5% profit margin vs -5.0%. PNW earns a higher WallStSmart Score of 55/100 (C-).

PNW

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 6.0Value: 4.0Quality: 2.5
Piotroski: 1/9Altman Z: 0.57

TLN

Hold

44

out of 100

Grade: D

Growth: 8.0Profit: 2.5Value: 5.0Quality: 2.5
Piotroski: 3/9Altman Z: 0.30
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PNWSignificantly Overvalued (-24.9%)

Margin of Safety

-24.9%

Fair Value

$76.91

Current Price

$93.16

$16.25 premium

UndervaluedFair: $76.91Overvalued

Intrinsic value data unavailable for TLN.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PNW3 strengths · Avg: 8.0/10
P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.3%8/10

Strong operational efficiency at 21.3%

TLN2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
111.2%10/10

Revenue surging 111.2% year-over-year

EPS GrowthGrowth
34.5%8/10

Earnings expanding 34.5% YoY

Areas to Watch

PNW4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.623/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.622/10

Expensive relative to growth rate

EPS GrowthGrowth
-9.5%2/10

Earnings declined 9.5%

TLN4 concerns · Avg: 2.8/10
Price/BookValuation
8.9x4/10

Trading at 8.9x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-11.4%2/10

ROE of -11.4% — below average capital efficiency

Free Cash FlowQuality
$-546.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : PNW

The strongest argument for PNW centers on P/E Ratio, Price/Book, Operating Margin.

Bull Case : TLN

The strongest argument for TLN centers on Revenue Growth, EPS Growth. Revenue growth of 111.2% demonstrates continued momentum.

Bear Case : PNW

The primary concerns for PNW are Debt/Equity, Piotroski F-Score, PEG Ratio. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Bear Case : TLN

The primary concerns for TLN are Price/Book, Piotroski F-Score, Return on Equity. Debt-to-equity of 5.92 is elevated, increasing financial risk.

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 1.63 — expect wider price swings.

TLN is growing revenue faster at 111.2% — sustainability is the question.

PNW generates stronger free cash flow (-335M), providing more financial flexibility.

Bottom Line

PNW scores higher overall (55/100 vs 44/100). 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 prominent player in the U.S. power generation and infrastructure sector, committed to delivering reliable energy solutions through a robust portfolio that includes both traditional and renewable resources. The company emphasizes environmental sustainability and grid resilience, adapting to the increasing demand for electricity in a rapidly evolving energy landscape. With a strategic focus on innovation and advanced technology, Talen is well-positioned to capitalize on the transition to cleaner energy alternatives, making it an attractive investment opportunity for institutional investors.

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