Contrasting Consolidated Edison (ED) & Vistra Energy (VST)

Consolidated Edison (NYSE: ED) and Vistra Energy (NYSE:VST) are both mid-cap utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Profitability

This table compares Consolidated Edison and Vistra Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Consolidated Edison 10.42% 8.42% 2.52%
Vistra Energy 416.84% 352.77% 158.86%

Insider and Institutional Ownership

55.5% of Consolidated Edison shares are owned by institutional investors. 0.2% of Consolidated Edison shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Consolidated Edison and Vistra Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Consolidated Edison $12.08 billion 2.18 $1.25 billion $4.00 21.20
Vistra Energy $5.16 billion 1.51 $22.69 billion N/A N/A

Vistra Energy has lower revenue, but higher earnings than Consolidated Edison.

Dividends

Consolidated Edison pays an annual dividend of $2.76 per share and has a dividend yield of 3.3%. Vistra Energy does not pay a dividend. Consolidated Edison pays out 69.0% of its earnings in the form of a dividend. Vistra Energy has increased its dividend for 42 consecutive years.

Analyst Ratings

This is a summary of current ratings and price targets for Consolidated Edison and Vistra Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Consolidated Edison 4 5 1 0 1.70
Vistra Energy 0 2 8 0 2.80

Consolidated Edison currently has a consensus target price of $78.94, indicating a potential downside of 6.89%. Vistra Energy has a consensus target price of $20.45, indicating a potential upside of 12.61%. Given Vistra Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Vistra Energy is more favorable than Consolidated Edison.

Summary

Vistra Energy beats Consolidated Edison on 9 of the 14 factors compared between the two stocks.

About Consolidated Edison

Consolidated Edison, Inc. (Con Edison) is a holding company. The Company operates through its subsidiaries, which include Consolidated Edison Company of New York, Inc. (CECONY), Orange and Rockland Utilities, Inc. (O&R), Con Edison Clean Energy Businesses, Inc. (the Clean Energy Businesses) and Con Edison Transmission, Inc. (Con Edison Transmission). CECONY’s principal business operations are its regulated electric, gas and steam delivery businesses. CECONY provides electricity, natural gas and steam to customers in New York City and Westchester County. O&R’s principal business operations are its regulated electric and gas delivery businesses. The Clean Energy Businesses develop, own and operate renewable and energy infrastructure projects and provide energy-related products and services to wholesale and retail customers. Con Edison Transmission, through its subsidiaries, invests in electric transmission facilities and gas pipeline and storage facilities.

About Vistra Energy

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.

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