Contrasting Pinnacle West Capital (PNW) & Vistra Energy (VST)

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

Insider and Institutional Ownership

82.5% of Pinnacle West Capital shares are owned by institutional investors. 0.7% of Pinnacle West Capital 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Pinnacle West Capital and Vistra Energy, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pinnacle West Capital 1 8 0 0 1.89
Vistra Energy 0 2 9 0 2.82

Pinnacle West Capital currently has a consensus price target of $85.38, suggesting a potential upside of 12.20%. Vistra Energy has a consensus price target of $21.05, suggesting a potential upside of 15.28%. Given Vistra Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Vistra Energy is more favorable than Pinnacle West Capital.

Valuation & Earnings

This table compares Pinnacle West Capital and Vistra Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pinnacle West Capital $3.50 billion 2.43 $442.03 million $4.63 16.43
Vistra Energy $5.16 billion 1.51 $22.69 billion N/A N/A

Vistra Energy has higher revenue and earnings than Pinnacle West Capital.


Pinnacle West Capital pays an annual dividend of $2.78 per share and has a dividend yield of 3.7%. Vistra Energy does not pay a dividend. Pinnacle West Capital pays out 60.0% of its earnings in the form of a dividend. Vistra Energy has increased its dividend for 6 consecutive years.


This table compares Pinnacle West Capital and Vistra Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pinnacle West Capital 14.67% 10.31% 3.16%
Vistra Energy 416.84% 352.77% 158.86%


Vistra Energy beats Pinnacle West Capital on 10 of the 14 factors compared between the two stocks.

Pinnacle West Capital Company Profile

Pinnacle West Capital Corporation is a holding company that operates through its subsidiaries. The Company operates through regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses and related activities, and includes electricity generation, transmission and distribution. It owned and leased 6,236 megawatt (MW) of regulated generation capacity and the Company held a mix of both long-term and short-term purchased power agreements for additional capacity, including agreements for the purchase of renewable energy, as of December 31, 2016. Its subsidiaries include Arizona Public Service Company, which is a vertically-integrated electric utility that provides retail or wholesale electric service to the State of Arizona, with the exceptions of about one-half of the Phoenix metropolitan area, the Tucson metropolitan area and Mohave County in northwestern Arizona.

Vistra Energy Company Profile

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.

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