Vermilion Energy (NYSE:VET – Get Free Report) and Vista Energy (NYSE:VIST – Get Free Report) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.
Profitability
This table compares Vermilion Energy and Vista Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vermilion Energy | -22.78% | 4.25% | 1.63% |
| Vista Energy | 19.66% | 20.79% | 7.60% |
Risk and Volatility
Vermilion Energy has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Vista Energy has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Valuation and Earnings
This table compares Vermilion Energy and Vista Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vermilion Energy | $1.30 billion | 1.22 | -$467.78 million | ($2.28) | -4.59 |
| Vista Energy | $4.11 billion | 1.55 | $719.06 million | $7.19 | 7.99 |
Vista Energy has higher revenue and earnings than Vermilion Energy. Vermilion Energy is trading at a lower price-to-earnings ratio than Vista Energy, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
31.9% of Vermilion Energy shares are owned by institutional investors. Comparatively, 63.8% of Vista Energy shares are owned by institutional investors. 2.6% of Vermilion Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Dividends
Vermilion Energy pays an annual dividend of $0.39 per share and has a dividend yield of 3.7%. Vista Energy pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Vermilion Energy pays out -17.1% of its earnings in the form of a dividend. Vista Energy pays out 2.8% 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. Vermilion Energy has raised its dividend for 3 consecutive years. Vermilion Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Vermilion Energy and Vista Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vermilion Energy | 1 | 6 | 2 | 0 | 2.11 |
| Vista Energy | 0 | 0 | 5 | 1 | 3.17 |
Vermilion Energy currently has a consensus price target of $15.00, suggesting a potential upside of 43.43%. Vista Energy has a consensus price target of $82.04, suggesting a potential upside of 42.76%. Given Vermilion Energy’s higher possible upside, equities analysts clearly believe Vermilion Energy is more favorable than Vista Energy.
Summary
Vista Energy beats Vermilion Energy on 13 of the 18 factors compared between the two stocks.
About Vermilion Energy
Vermilion Energy Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and production of petroleum and natural gas. The company has properties in West Central Alberta, southeast Saskatchewan, Manitoba, and West Pembina in Canada; Wyoming in the United States; southwest Bordeaux and Paris Basin in France; the Netherlands; Germany; Ireland; Croatia; Slovakia; and Australia. The company was founded in 1994 and is headquartered in Calgary, Canada.
About Vista Energy
Vista Energy, S.A.B. de C.V., through its subsidiaries, engages in the exploration and production of oil and gas in Latin America. The company's principal assets located in Neuquina basin, Argentina and Vaca Muerta. It owns producing assets in Argentina and Mexico. In addition, the company involved in drilling and workover activities located in Argentina. The company was formerly known as Vista Oil & Gas, S.A.B. de C.V. and changed its name to Vista Energy, S.A.B. de C.V. in April 2022. Vista Energy, S.A.B. de C.V. was incorporated in 2017 and is based in Mexico City, Mexico.
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