Critical Comparison: OGE Energy Corporation (OGE) vs. Vistra Energy Corp. (VST)

OGE Energy Corporation (NYSE: OGE) and Vistra Energy Corp. (NYSE:VST) are both mid-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Dividends

OGE Energy Corporation pays an annual dividend of $1.21 per share and has a dividend yield of 3.3%. Vistra Energy Corp. pays an annual dividend of $2.32 per share and has a dividend yield of 13.0%. OGE Energy Corporation pays out 63.4% of its earnings in the form of a dividend. Vistra Energy Corp. has raised its dividend for 10 consecutive years. Vistra Energy Corp. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares OGE Energy Corporation and Vistra Energy Corp.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
OGE Energy Corporation $2.32 billion 3.13 $811.70 million $1.91 19.01
Vistra Energy Corp. $5.53 billion 1.37 $1.55 billion N/A N/A

Vistra Energy Corp. has higher revenue and earnings than OGE Energy Corporation.

Insider and Institutional Ownership

62.5% of OGE Energy Corporation shares are held by institutional investors. 0.5% of OGE Energy Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares OGE Energy Corporation and Vistra Energy Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OGE Energy Corporation 16.50% 11.06% 3.80%
Vistra Energy Corp. N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings for OGE Energy Corporation and Vistra Energy Corp., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OGE Energy Corporation 0 4 2 0 2.33
Vistra Energy Corp. 0 1 3 0 2.75

OGE Energy Corporation currently has a consensus target price of $35.60, indicating a potential downside of 1.96%. Vistra Energy Corp. has a consensus target price of $19.50, indicating a potential upside of 9.67%. Given Vistra Energy Corp.’s stronger consensus rating and higher probable upside, analysts plainly believe Vistra Energy Corp. is more favorable than OGE Energy Corporation.

Summary

Vistra Energy Corp. beats OGE Energy Corporation on 8 of the 15 factors compared between the two stocks.

About OGE Energy Corporation

OGE Energy Corp. (OGE Energy) is an energy and energy services provider offering physical delivery and related services for both electricity and natural gas primarily in the south central United States. The Company operates through two segments: electric utility and natural gas midstream operations. The electric utility segment generates, transmits, distributes and sells electric energy in Oklahoma and western Arkansas. Its operations are conducted through Oklahoma Gas and Electric Company (OG&E). OG&E is an electric utility in Oklahoma and its franchised service territory includes Fort Smith, Arkansas and the surrounding communities. The natural gas midstream operations segment represents the Company’s investment in Enable Midstream Partners, LP (Enable) through subsidiaries, and ultimately OGE Enogex Holdings LLC (OGE Holdings). Enable’s assets and operations are organized into two segments: gathering and processing, and transportation and storage.

About Vistra Energy Corp.

Vistra Energy Corp, formerly TCEH Corp. is a holding company. The Company is an energy company, which is focused on energy and power generation markets through operation as a generator and retailer of electricity in Texas market. Its portfolio of businesses consists primarily of Luminant and TXU Energy. It is engaged in electricity market activities in Texas, including electricity generation, wholesale energy sales and purchases, commodity risk management activities and retail electricity operations. Luminant generates and sells electricity and related products from its fleet of generation facilities totaling approximately 17,000 megawatts of generation in Texas, including 2,300 megawatts fueled by nuclear power, 8,000 megawatts fueled by coal and 6,000 megawatts fueled by natural gas. The Company is a purchaser of wind-generated electricity. TXU Energy sells retail electricity and services to approximately 1.7 million residential and business customers in Texas.

Receive News & Ratings for OGE Energy Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for OGE Energy Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply