Critical Comparison: Vitesse Energy (NYSE:VTS) vs. Vista Energy (NYSE:VIST)

Vista Energy (NYSE:VIST) and Vitesse Energy (NYSE:VTS) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Valuation and Earnings

This table compares Vista Energy and Vitesse Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vista Energy	$1.33 billion	3.33	$396.95 million	$4.32	10.64
Vitesse Energy	$252.15 million	2.81	-$19.74 million	$0.84	28.64

Vista Energy has higher revenue and earnings than Vitesse Energy. Vista Energy is trading at a lower price-to-earnings ratio than Vitesse Energy, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Vista Energy has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, Vitesse Energy has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Dividends

Vista Energy pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. Vitesse Energy pays an annual dividend of $2.10 per share and has a dividend yield of 8.7%. Vista Energy pays out 4.6% of its earnings in the form of a dividend. Vitesse Energy pays out 250.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Vista Energy and Vitesse Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vista Energy	33.08%	38.04%	17.31%
Vitesse Energy	10.78%	7.94%	5.57%

Institutional and Insider Ownership

63.8% of Vista Energy shares are held by institutional investors. Comparatively, 51.6% of Vitesse Energy shares are held by institutional investors. 15.8% of Vitesse Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Vista Energy and Vitesse Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vista Energy	0	1	4	0	2.80
Vitesse Energy	0	0	3	0	3.00

Vista Energy currently has a consensus target price of $59.80, suggesting a potential upside of 30.08%. Vitesse Energy has a consensus target price of $28.17, suggesting a potential upside of 17.07%. Given Vista Energy’s higher possible upside, research analysts clearly believe Vista Energy is more favorable than Vitesse Energy.

Summary

Vista Energy beats Vitesse Energy on 12 of the 16 factors compared between the two stocks.

About Vista Energy

Vista Energy, S.A.B. de C.V., through its subsidiaries, engages in the exploration and production of oil and gas in Latin America. The company's principal assets located in Neuquina basin, Argentina and Vaca Muerta. It owns producing assets in Argentina and Mexico. In addition, the company involved in drilling and workover activities located in Argentina. The company was formerly known as Vista Oil & Gas, S.A.B. de C.V. and changed its name to Vista Energy, S.A.B. de C.V. in April 2022. Vista Energy, S.A.B. de C.V. was incorporated in 2017 and is based in Mexico City, Mexico.

About Vitesse Energy

Vitesse Energy, Inc., together with its subsidiaries, engages in the acquisition, development, and production of non-operated oil and natural gas properties in the United States. It owns and acquires non-operated working interest and royalty interest ownership in the Williston Basin properties located in North Dakota and Montana. The company also owns non-operated interests in the Central Rockies properties located in Colorado and Wyoming. Vitesse Energy, Inc. was founded in 2014 and is based in Centennial, Colorado.