Analyzing Shell (NYSE:SHEL) and Vista Energy (NYSE:VIST)

Vista Energy (NYSE:VIST) and Shell (NYSE:SHEL) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vista Energy	$1.65 billion	2.52	$477.52 million	$5.55	7.85
Shell	$289.03 billion	0.74	$16.09 billion	$4.34	16.59

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

Volatility and Risk

Vista Energy has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Shell has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Insider and Institutional Ownership

63.8% of Vista Energy shares are held by institutional investors. Comparatively, 28.6% of Shell shares are held by institutional investors. 1.0% of Shell shares are held 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 ratings and price targets for Vista Energy and Shell, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vista Energy	0	0	4	2	3.33
Shell	0	3	10	2	2.93

Vista Energy presently has a consensus target price of $65.68, suggesting a potential upside of 50.82%. Shell has a consensus target price of $78.69, suggesting a potential upside of 9.30%. Given Vista Energy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Vista Energy is more favorable than Shell.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vista Energy	29.12%	12.02%	4.55%
Shell	4.93%	10.66%	5.01%

Summary

Vista Energy beats Shell on 8 of the 14 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 Shell

Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides electric vehicle charging services. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.