Southern Company is favored over Vistra in the utility sector due to lower debt usage and valuation.

From Nasdaq: 2025-06-26 12:09:00

The Utility-Electric Power industry offers a stable investment opportunity with rising demand for electricity and clean energy infrastructure. VST and SO are key players in renewable energy, positioning them well for the energy transition. Vistra focuses on nuclear energy, while Southern Company emphasizes clean energy integration.

VST’s 2025 and 2026 earnings growth projections have increased, while SO’s estimates have seen slight changes. VST boasts a higher ROE of 87.03% compared to SO’s 12.7%. Both companies offer dividend yields below the industry average of 3.27%.

Vistra’s sales estimates show strong growth in 2025 and 2026, while Southern Company’s estimates reflect steady growth. Both companies utilize debt for capital investments, with Vistra having a higher debt-to-capital ratio.

Vistra trades at a premium to Southern Company based on Price/Earnings Forward 12-month basis. Despite both stocks carrying a Zacks Rank #3, SO’s lower debt usage, cheaper valuation, and higher dividend yield give it an edge in the utility sector. Research Chief names a top stock pick with significant growth potential.

A company targeting millennial and Gen Z audiences, generating substantial revenue, is highlighted as a potential investment opportunity with explosive upside. This stock pick is expected to outperform previous high-growth stocks like Nano-X Imaging.

For more stock analysis reports and recommendations from Zacks Investment Research, investors can access free reports on Southern Company and Vistra Corp. Conclusion: Southern Company holds a slight advantage over Vistra in the utility sector due to its lower debt usage, valuation, and dividend yield.



Read more at Nasdaq: Vistra or Southern Company: Which Utility Stock Offers Better Upside?