WallStSmart

Sempra Energy (SRE)vsTalen Energy Corporation (TLN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sempra Energy generates 262% more annual revenue ($13.55B vs $3.74B). SRE leads profitability with a 16.8% profit margin vs -5.0%. SRE earns a higher WallStSmart Score of 68/100 (B-).

SRE

Strong Buy

68

out of 100

Grade: B-

Growth: 4.7Profit: 6.5Value: 5.3Quality: 4.5
Piotroski: 4/9Altman Z: 0.97

TLN

Hold

42

out of 100

Grade: D

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SRESignificantly Overvalued (-36.8%)

Margin of Safety

-36.8%

Fair Value

$60.93

Current Price

$83.34

$22.41 premium

UndervaluedFair: $60.93Overvalued

Intrinsic value data unavailable for TLN.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SRE5 strengths · Avg: 8.6/10
EPS GrowthGrowth
71.3%10/10

Earnings expanding 71.3% YoY

Market CapQuality
$54.50B9/10

Large-cap with strong market position

PEG RatioValuation
0.708/10

Growing faster than its price suggests

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.3%8/10

Strong operational efficiency at 28.3%

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

SRE4 concerns · Avg: 2.5/10
Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Debt/EquityHealth
1.123/10

Elevated debt levels

Revenue GrowthGrowth
-0.1%2/10

Revenue declined 0.1%

Free Cash FlowQuality
$-1.57B2/10

Negative free cash flow — burning cash

TLN4 concerns · Avg: 2.8/10
Price/BookValuation
9.3x4/10

Trading at 9.3x 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 : SRE

The strongest argument for SRE centers on EPS Growth, Market Cap, PEG Ratio. Profitability is solid with margins at 16.8% and operating margin at 28.3%. PEG of 0.70 suggests the stock is reasonably priced for its growth.

Bull Case : TLN

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

Bear Case : SRE

The primary concerns for SRE are Return on Equity, Debt/Equity, Revenue Growth.

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

SRE profiles as a declining 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.

TLN generates stronger free cash flow (-546M), providing more financial flexibility.

Bottom Line

SRE scores higher overall (68/100 vs 42/100), backed by strong 16.8% margins. Both earn "Strong 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.

Sempra Energy

UTILITIES · UTILITIES - DIVERSIFIED · USA

Sempra Energy is a North American energy infrastructure company based in San Diego, California. Sempra Energy's focus is on electric and natural gas infrastructure. Its operating companies include: Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E) in Southern California; Oncor Electric Delivery Company (Oncor) in Texas; Sempra LNG; and IEnova, based in Mexico.

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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