Head-To-Head Analysis: Vistra (NYSE:VST) & Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY)

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

Volatility and Risk

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terna Rete Elettrica Nazionale	N/A	N/A	N/A	N/A	N/A
Vistra	$17.22 billion	3.37	$2.66 billion	$2.77	61.83

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

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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Terna Rete Elettrica Nazionale pays an annual dividend of $1.29 per share and has a dividend yield of 4.2%. Vistra pays an annual dividend of $0.90 per share and has a dividend yield of 0.5%. Vistra pays out 32.5% of its earnings in the form of a dividend. Vistra has increased its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations for Terna Rete Elettrica Nazionale and Vistra, as provided by MarketBeat.com.

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

Vistra has a consensus target price of $234.21, suggesting a potential upside of 36.76%. Given Vistra’s stronger consensus rating and higher probable upside, analysts plainly believe Vistra is more favorable than Terna Rete Elettrica Nazionale.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Terna Rete Elettrica Nazionale	N/A	N/A	N/A
Vistra	6.70%	64.04%	4.45%

Summary

Vistra beats Terna Rete Elettrica Nazionale on 12 of the 14 factors compared between the two stocks.

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.

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.