VST vs AES

For growth investors, The AES Corporation (AES) is the stronger pick with -0.

4% revenue growth year-over-year, versus -12. 4% for Vistra Corp. (VST). The AES Corporation (AES) offers the better valuation at 11. 4x trailing P/E (6. 2x forward), making it the more compelling value choice. Analysts rate Vistra Corp. (VST) a "Buy" — based on 21 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, The AES Corporation (AES) is the cheapest at 11.

4x versus Vistra Corp. at 72. 6x. On forward P/E, The AES Corporation is actually cheaper at 6. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The AES Corporation wins at 0. 08x versus Vistra Corp. 's 1. 67x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Vistra Corp.

(VST) delivered a total return of +910. 9%, compared to -33. 1% for The AES Corporation (AES). Over 10 years, the gap is even starker: VST returned +983. 1% versus AES's +83. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The AES Corporation (AES) is the lower-risk stock at 1.

01β versus Vistra Corp. 's 1. 56β — meaning VST is approximately 55% more volatile than AES relative to the S&P 500. On balance sheet safety, The AES Corporation (AES) carries a lower debt/equity ratio of 3% versus 4% for Vistra Corp. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The AES Corporation (AES) is pulling ahead at -0.

4% versus -12. 4% for Vistra Corp. (VST). On earnings-per-share growth, the picture is similar: The AES Corporation grew EPS -46. 6% year-over-year, compared to -68. 4% for Vistra Corp.. Over a 3-year CAGR, AES leads at -1. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

The AES Corporation (AES) is the more profitable company, earning 7.

8% net margin versus 5. 6% for Vistra Corp. — meaning it keeps 7. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AES leads at 16. 1% versus 7. 9% for VST. At the gross margin level — before operating expenses — AES leads at 18. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, The AES Corporation (AES) is the more undervalued stock at a PEG of 0. 08x versus Vistra Corp. 's 1. 67x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, The AES Corporation (AES) trades at 6. 2x forward P/E versus 18. 7x for Vistra Corp. — 12. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for VST: 41. 9% to $227. 60.

All stocks in this comparison pay dividends.

The AES Corporation (AES) offers the highest yield at 4. 9%, versus 0. 6% for Vistra Corp. (VST).

For long-horizon retirement investors, Vistra Corp.

(VST) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0. 6% yield, +983. 1% 10Y return). Both have compounded well over 10 years (VST: +983. 1%, AES: +83. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: VST is a mid-cap quality compounder stock; AES is a mid-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.