



Over the past three months, one of the leaders of growth in the S&P 500 index has been the renewable energy industry (Independent Power and Renewable Electricity Producers) +25.4%.
Some of the largest (by market capitalization) companies in this industry are: Vistra ($54.7B), which has 41 gigawatts of generation capacity from nuclear, coal, gas and solar power, as well as one of the world’s largest utility-scale battery storage projects, and NRG Energy ($20.1B), one of the largest retail electricity suppliers in the US with 6 million customers.
Based on the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria using the methodology of Stanford University professor Joseph Piotroski.
As you can see, in terms of fundamental data, Vistra outperforms NRG Energy in terms of profitability.
Over the past 3 months, Vistra’s shares have fallen by -21.4%, while NRG Energy’s have risen by +31.0% (the S&P 500 index is up +3.7%). NRG Energy Discovery not only outperformed its closest competitor, but also demonstrated better results compared to the index.
So, there is no winner in this issue. Although NRG Energy’s business is superior in terms of accumulation, NRG Energy shares show better returns.
* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.