Vistra Energy Corp. (NYSE: VST) and FirstEnergy Corporation (NYSE:FE) are both mid-cap utilities companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.
Earnings and Valuation
This table compares Vistra Energy Corp. and FirstEnergy Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Vistra Energy Corp.||$5.53 billion||1.50||$1.55 billion||N/A||N/A|
|FirstEnergy Corporation||$13.76 billion||1.06||$3.96 billion||($11.70)||-2.82|
FirstEnergy Corporation has higher revenue and earnings than Vistra Energy Corp..
Insider and Institutional Ownership
80.1% of FirstEnergy Corporation shares are held by institutional investors. 0.3% of FirstEnergy Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and recommmendations for Vistra Energy Corp. and FirstEnergy Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vistra Energy Corp.||0||2||7||0||2.78|
Vistra Energy Corp. currently has a consensus target price of $20.28, suggesting a potential upside of 4.31%. FirstEnergy Corporation has a consensus target price of $34.21, suggesting a potential upside of 3.82%. Given Vistra Energy Corp.’s stronger consensus rating and higher probable upside, analysts plainly believe Vistra Energy Corp. is more favorable than FirstEnergy Corporation.
Vistra Energy Corp. pays an annual dividend of $2.32 per share and has a dividend yield of 11.9%. FirstEnergy Corporation pays an annual dividend of $1.44 per share and has a dividend yield of 4.4%. FirstEnergy Corporation pays out -12.3% of its earnings in the form of a dividend.
This table compares Vistra Energy Corp. and FirstEnergy Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vistra Energy Corp.||N/A||N/A||N/A|
FirstEnergy Corporation beats Vistra Energy Corp. on 7 of the 13 factors compared between the two stocks.
About Vistra Energy Corp.
Vistra Energy Corp, formerly TCEH Corp. is a holding company. The Company is an energy company, which is focused on energy and power generation markets through operation as a generator and retailer of electricity in Texas market. Its portfolio of businesses consists primarily of Luminant and TXU Energy. It is engaged in electricity market activities in Texas, including electricity generation, wholesale energy sales and purchases, commodity risk management activities and retail electricity operations. Luminant generates and sells electricity and related products from its fleet of generation facilities totaling approximately 17,000 megawatts of generation in Texas, including 2,300 megawatts fueled by nuclear power, 8,000 megawatts fueled by coal and 6,000 megawatts fueled by natural gas. The Company is a purchaser of wind-generated electricity. TXU Energy sells retail electricity and services to approximately 1.7 million residential and business customers in Texas.
About FirstEnergy Corporation
FirstEnergy Corp. is a holding company. The Company is engaged in holding, directly or indirectly, all of the outstanding equity of its principal subsidiaries. Its segments include Regulated Distribution, Regulated Transmission, Competitive Energy Services (CES) and Corporate/Other. As of December 31, 2016, the Regulated Distribution segment distributed electricity through the Company’s 10 utility operating companies, serving approximately six million customers, and purchased power for its provider of last resort (POLR), standard offer service (SOS), standard offer service (SSO) and default service requirements in Ohio, Pennsylvania, New Jersey and Maryland. The Regulated Transmission segment transmits electricity through transmission facilities owned and operated by American Transmission Systems, Incorporated (ATSI) and Trans-Allegheny Interstate Line Company (TrAIL). The CES segment primarily supplies electricity to end use customers through retail and wholesale arrangements.
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