Vistra (NYSE:VST – Get Free Report) and Duke Energy (NYSE:DUK – Get Free Report) are both large-cap utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.
Dividends
Vistra pays an annual dividend of $0.91 per share and has a dividend yield of 0.6%. Duke Energy pays an annual dividend of $4.26 per share and has a dividend yield of 3.7%. Vistra pays out 32.9% of its earnings in the form of a dividend. Duke Energy pays out 67.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Vistra has increased its dividend for 6 consecutive years and Duke Energy has increased its dividend for 20 consecutive years. Duke Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Vistra and Duke Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vistra | 6.70% | 64.04% | 4.45% |
| Duke Energy | 15.76% | 9.98% | 2.69% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vistra | $17.22 billion | 3.04 | $2.66 billion | $2.77 | 55.82 |
| Duke Energy | $30.36 billion | 2.98 | $4.52 billion | $6.36 | 18.28 |
Duke Energy has higher revenue and earnings than Vistra. Duke Energy is trading at a lower price-to-earnings ratio than Vistra, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Vistra and Duke Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vistra | 0 | 3 | 12 | 4 | 3.05 |
| Duke Energy | 1 | 6 | 11 | 1 | 2.63 |
Vistra presently has a consensus target price of $231.40, indicating a potential upside of 49.64%. Duke Energy has a consensus target price of $136.50, indicating a potential upside of 17.41%. Given Vistra’s stronger consensus rating and higher probable upside, research analysts plainly believe Vistra is more favorable than Duke Energy.
Institutional & Insider Ownership
90.9% of Vistra shares are owned by institutional investors. Comparatively, 65.3% of Duke Energy shares are owned by institutional investors. 1.4% of Vistra shares are owned by company insiders. Comparatively, 0.1% of Duke Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Vistra has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Duke Energy has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.
Summary
Vistra beats Duke Energy on 12 of the 18 factors compared between the two stocks.
About Vistra
Vistra Corp., together with its subsidiaries, operates as an integrated retail electricity and power generation company. The company operates through six segments: Retail, Texas, East, West, Sunset, and Asset Closure. It retails electricity and natural gas to residential, commercial, and industrial customers across states in the United States and the District of Columbia. In addition, the company is involved in the electricity generation, wholesale energy purchases and sales, commodity risk management, fuel production, and fuel logistics management activities. It serves approximately 4 million customers with a generation capacity of approximately 37,000 megawatts with a portfolio of natural gas, nuclear, coal, solar, and battery energy storage facilities. The company was formerly known as Vistra Energy Corp. and changed its name to Vistra Corp. in July 2020. Vistra Corp. was founded in 1882 and is based in Irving, Texas.
About Duke Energy
Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through two segments: Electric Utilities and Infrastructure (EU&I), and Gas Utilities and Infrastructure (GU&I). The EU&I segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest. It generates electricity through coal, hydroelectric, natural gas, oil, solar and wind sources, renewables, and nuclear fuel. This segment also engages in the wholesale of electricity to municipalities, electric cooperative utilities, and load-serving entities. The GU&I segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and invests in pipeline transmission projects, renewable natural gas projects, and natural gas storage facilities. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2006. Duke Energy Corporation was founded in 1904 and is headquartered in Charlotte, North Carolina.
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