Vista Energy (NYSE:VIST – Get Free Report) and Vermilion Energy (NYSE:VET – Get Free Report) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares Vista Energy and Vermilion Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vista Energy | 19.66% | 20.79% | 7.60% |
| Vermilion Energy | -22.78% | 4.25% | 1.63% |
Insider and Institutional Ownership
63.8% of Vista Energy shares are owned by institutional investors. Comparatively, 31.9% of Vermilion Energy shares are owned by institutional investors. 2.6% of Vermilion Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Vista Energy and Vermilion Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vista Energy | 0 | 0 | 5 | 1 | 3.17 |
| Vermilion Energy | 1 | 6 | 2 | 0 | 2.11 |
Vista Energy currently has a consensus price target of $82.04, suggesting a potential upside of 45.57%. Vermilion Energy has a consensus price target of $15.00, suggesting a potential upside of 41.46%. Given Vista Energy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Vista Energy is more favorable than Vermilion Energy.
Valuation and Earnings
This table compares Vista Energy and Vermilion Energy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vista Energy | $2.47 billion | 2.52 | $719.06 million | $7.19 | 7.84 |
| Vermilion Energy | $1.30 billion | 1.23 | -$467.78 million | ($2.28) | -4.65 |
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.
Risk and Volatility
Vista Energy has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Vermilion Energy has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.
Summary
Vista Energy beats Vermilion Energy on 14 of the 15 factors compared between the two stocks.
About Vista Energy
Vista Energy is an independent energy company focused on the exploration, development and production of oil and natural gas in Argentina. Its operations are concentrated in the Vaca Muerta shale formation, one of the country’s major unconventional oil and gas regions. The company produces crude oil, natural gas and natural gas liquids, serving domestic and international markets. It was established in 2017 by Miguel Galuccio, its chief executive officer, and began operations the following year.
About Vermilion Energy
Vermilion Energy Inc. is a Calgary-based oil and natural gas producer with operations in North America and Europe. The company explores for, develops and produces conventional energy resources, including crude oil and natural gas. Its operating areas include Canada, the United States, France, the Netherlands, Germany and Croatia. Vermilion’s European natural gas production provides exposure to regional energy markets, while its North American business includes oil and gas assets. The company traces its roots to 1994 and has expanded through the development and acquisition of producing assets.
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