RWE (OTCMKTS:RWEOY – Get Free Report) and Vistra (NYSE:VST – Get Free Report) are both large-cap utilities companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.
Insider & Institutional Ownership
90.9% of Vistra shares are owned by institutional investors. 0.9% of Vistra shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for RWE and Vistra, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RWE | 0 | 5 | 2 | 0 | 2.29 |
| Vistra | 0 | 1 | 13 | 3 | 3.12 |
Valuation and Earnings
This table compares RWE and Vistra”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RWE | $19.94 billion | 2.39 | $3.54 billion | $3.79 | 17.33 |
| Vistra | $17.74 billion | 2.96 | $944.00 million | $5.97 | 26.12 |
RWE has higher revenue and earnings than Vistra. RWE is trading at a lower price-to-earnings ratio than Vistra, indicating that it is currently the more affordable of the two stocks.
Dividends
RWE pays an annual dividend of $1.00 per share and has a dividend yield of 1.5%. Vistra pays an annual dividend of $0.92 per share and has a dividend yield of 0.6%. RWE pays out 26.4% of its earnings in the form of a dividend. Vistra pays out 15.4% 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 raised its dividend for 6 consecutive years.
Volatility & Risk
RWE has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Vistra has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.
Profitability
This table compares RWE and Vistra’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RWE | 15.16% | 4.77% | 1.83% |
| Vistra | 11.52% | 105.64% | 7.22% |
Summary
Vistra beats RWE on 14 of the 18 factors compared between the two stocks.
About RWE
RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.
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.
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