Vista Energy (NYSE:VIST) versus Braskem (NYSE:BAK) Critical Comparison

Braskem (NYSE:BAK) and Vista Energy (NYSE:VIST) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Braskem and Vista Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Braskem	-6.95%	N/A	-0.53%
Vista Energy	32.66%	15.92%	5.77%

Insider & Institutional Ownership

63.8% of Vista Energy shares are owned by institutional investors. 0.0% of Braskem shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Braskem and Vista Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Braskem	2	5	0	0	1.71
Vista Energy	0	1	4	3	3.25

Braskem currently has a consensus price target of $4.40, suggesting a potential upside of 51.46%. Vista Energy has a consensus price target of $69.28, suggesting a potential upside of 38.68%. Given Braskem’s higher probable upside, analysts clearly believe Braskem is more favorable than Vista Energy.

Valuation and Earnings

This table compares Braskem and Vista Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Braskem	$14.36 billion	0.08	-$2.10 billion	($2.28)	-1.27
Vista Energy	$1.65 billion	3.16	$477.52 million	$6.80	7.35

Vista Energy has lower revenue, but higher earnings than Braskem. Braskem is trading at a lower price-to-earnings ratio than Vista Energy, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Braskem has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, Vista Energy has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Summary

Vista Energy beats Braskem on 11 of the 15 factors compared between the two stocks.

About Braskem

Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. The company operates through three segments: Brazil, United States and Europe, and Mexico. The Brazil segment produces and sells olefins, including ethylene, polymer and chemical grade propylene, butadiene, and butene-1; benzene, toluene, and xylenes products; fuels, such as automotive gasoline, liquefied petroleum gas, ethyl tertiary-butyl ether, and methyl tertiary-butyl ether; intermediates, such as cumene; aliphatics, aromatics, and hydrogenated solvents; and specialties comprising isoprene, dicyclopentadiene, piperylene, nonene, tetramer, polyisobutylene, and hydrocarbon resins. This segment also produces and sells polyethylene (PE) and polypropylene (PP); supplies electricity and other inputs to second-generation producers; produces and sells of PE, including the production of green PE from renewable resources; and produces and sells polyvinyl chloride and caustic soda. The United States and Europe segment produces and sells PP in the United States and Germany. The Mexico segment produces and sells ethylene, high-density PE, and low-density PE in Mexico. It also manufactures, sells, imports, and exports chemicals, petrochemicals, and fules; produces, supplies, and sells utilities, such as steam, water, compressed air, and industrial gases; and provides industrial services. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is headquartered in São Paulo, Brazil.

About Vista Energy

Vista Energy, S.A.B. de C.V., through its subsidiaries, engages in the exploration and production of oil and gas in Latin America. The company's principal assets located in Neuquina basin, Argentina and Vaca Muerta. It owns producing assets in Argentina and Mexico. In addition, the company involved in drilling and workover activities located in Argentina. The company was formerly known as Vista Oil & Gas, S.A.B. de C.V. and changed its name to Vista Energy, S.A.B. de C.V. in April 2022. Vista Energy, S.A.B. de C.V. was incorporated in 2017 and is based in Mexico City, Mexico.