Over the past three months, the Independent Power and Renewable Electricity Producers (IPP) industry has been one of the top growth leaders in the S&P 500 index, up 54.2%.
Some of the largest (by market capitalization) companies in this industry are: Vistra ($52.5B) and NRG Energy ($20.5B), both of which are engaged in the production and supply of electricity in the United States.
Based on the latest quarterly reports, we analyzed each company’s profitability, strength, and efficiency criteria according to the methodology of Stanford University professor Joseph Piotroski.
As you can see, both companies are performing quite well in terms of fundamentals, but Vistra is outperforming NRG Energy in terms of profitability.
Over the past 3 months, Vistra’s shares have risen by +111.0%, while NRG Energy’s have increased by +27.4% (the S&P 500 index has risen by +9.4%). Vistra has not only outperformed its closest competitor, but also demonstrated better results compared to the index.
So, the winner in this issue is Vistra. Its shares show better returns, and the business outperforms its competitor in terms of accumulation.
* 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.
