Constellation Energy (CEG) operates the largest U.S. nuclear power portfolio, boasting over 22 gigawatts of capacity by fiscal 2025. In contrast, Vistra (VST) has a smaller capacity of 6,448 megawatts but is expanding through long-term contracts with tech companies that require reliable power for data centers.
Currently, Constellation carries a higher valuation at 22.4 times its forward earnings compared to Vistra’s 14.4. This valuation disparity is crucial for potential investors.
### Constellation’s Revenue Visibility
Constellation has secured long-term agreements with major firms like Microsoft and Meta for substantial power supply, significantly boosting its revenue visibility. The company anticipates annual base earnings per share growth of over 20% from 2026 to 2029.
### Vistra’s Opportunities
Vistra has also established significant contracts, including a 20-year deal with Meta covering 2,609 megawatts. They project a 2027 adjusted EBITDA of $7.4 to $7.8 billion and have reduced their share count by approximately 30% since late 2021, enhancing earnings per share without solely depending on accelerated business growth.
### Conclusion
While Constellation Energy merits a premium due to its market position and future contracts, Vistra presents a more attractive risk-reward balance currently.
