Vistra (VST) and The Competition Critical Contrast

Vistra (NYSE:VST) is one of 141 publicly-traded companies in the “Independent Power & Renewable Electricity Producers” industry, but how does it weigh in compared to its peers? We will compare Vistra to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Institutional and Insider Ownership

90.9% of Vistra shares are owned by institutional investors. Comparatively, 36.0% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by institutional investors. 0.9% of Vistra shares are owned by insiders. Comparatively, 21.5% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by 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.

Profitability

This table compares Vistra and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vistra	13.15%	123.66%	8.66%
Vistra Competitors	-33.87%	10.60%	0.76%

Volatility and Risk

Vistra has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Vistra’s peers have a beta of 0.62, indicating that their average stock price is 38% less volatile than the S&P 500.

Valuation and Earnings

This table compares Vistra and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Vistra	$20.59 billion	$944.00 million	17.70
Vistra Competitors	$35.63 billion	$816.69 million	0.07

Vistra’s peers have higher revenue, but lower earnings than Vistra. Vistra is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Vistra pays an annual dividend of $0.92 per share and has a dividend yield of 0.7%. Vistra pays out 12.4% of its earnings in the form of a dividend. As a group, “Independent Power & Renewable Electricity Producers” companies pay a dividend yield of 6.5% and pay out 191.0% of their earnings in the form of a dividend. Vistra has raised its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations for Vistra and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vistra	1	3	18	1	2.83
Vistra Competitors	963	2988	3826	189	2.41

Vistra currently has a consensus target price of $202.48, indicating a potential upside of 54.57%. As a group, “Independent Power & Renewable Electricity Producers” companies have a potential upside of 145.51%. Given Vistra’s peers higher probable upside, analysts clearly believe Vistra has less favorable growth aspects than its peers.

Summary

Vistra beats its peers on 11 of the 15 factors compared.

Vistra Company Profile

Vistra Corp. is an integrated energy company that generates and sells electricity and provides related services to residential, commercial and industrial customers. Its retail businesses offer electricity plans and energy services through brands that include TXU Energy and Ambit Energy. The company owns and operates a diverse generation fleet, including natural gas, nuclear, coal and solar facilities, as well as battery energy storage systems. Its operations serve customers and wholesale power markets across multiple U.S. regions, including Texas and the eastern and central United States.