Head to Head Contrast: Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY) and Vistra (NYSE:VST)

Vistra (NYSE:VST) and Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY) are both large-cap utilities companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Risk and Volatility

Vistra has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Terna Rete Elettrica Nazionale has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Profitability

This table compares Vistra and Terna Rete Elettrica Nazionale’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vistra	6.70%	64.88%	4.45%
Terna Rete Elettrica Nazionale	N/A	N/A	N/A

Institutional & Insider Ownership

90.9% of Vistra shares are held by institutional investors. 1.4% of Vistra shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Vistra and Terna Rete Elettrica Nazionale”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vistra	$17.22 billion	3.75	$2.66 billion	$6.27	30.41
Terna Rete Elettrica Nazionale	N/A	N/A	N/A	N/A	N/A

Vistra has higher revenue and earnings than Terna Rete Elettrica Nazionale.

Analyst Recommendations

This is a summary of recent ratings and target prices for Vistra and Terna Rete Elettrica Nazionale, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vistra	0	2	12	4	3.11
Terna Rete Elettrica Nazionale	1	1	1	0	2.00

Vistra presently has a consensus price target of $234.21, indicating a potential upside of 22.85%. Given Vistra’s stronger consensus rating and higher probable upside, research analysts plainly believe Vistra is more favorable than Terna Rete Elettrica Nazionale.

Dividends

Vistra pays an annual dividend of $0.90 per share and has a dividend yield of 0.5%. Terna Rete Elettrica Nazionale pays an annual dividend of $1.29 per share and has a dividend yield of 4.1%. Vistra pays out 14.4% of its earnings in the form of a dividend. Vistra has raised its dividend for 6 consecutive years.

Summary

Vistra beats Terna Rete Elettrica Nazionale on 12 of the 14 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 Terna Rete Elettrica Nazionale

Terna S.p.A., together with its subsidiaries, provides electricity transmission and dispatching services in Italy, other Euro-area countries, and internationally. It operates through Regulated, Non-Regulated, and International segments. The company is involved in the design, construction, management, development, operation, and maintenance of national transmission grid; dispatching and metering; and construction of storage systems. It also supplies transformers and cables; provides energy and connectivity services; and installs and operates interconnecting lines. In addition, the company designs, produces, commercializes, and repairs power transformers for electricity transmission and distribution grids; industrial transformers for the steel and metals industries; special transformers for convertors used in electrochemical production; produces and sells marine and terrestrial cables; develops renewable energy projects; and undertakes private interconnector projects. Terna S.p.A. was founded in 1962 and is based in Rome, Italy.