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CEG vs. VST: Which Nuclear Stock Has the Edge in the Utility Sector?
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Key Takeaways
Vistra Energy holds a marginal edge over Constellation Energy based on growth, ROE and valuation metrics.
VST projects stronger earnings growth and boasts higher ROE with a lower forward P/E than peers.
Constellation Energy leads in nuclear capacity, while both firms expand clean energy and hydrogen efforts.
Nuclear energy is emerging as a vital pillar of the utility sector as electricity demand rises and the transition to cleaner power accelerates. Unlike solar and wind, which depend on weather conditions, nuclear plants provide reliable, around-the-clock electricity, ensuring a steady and uninterrupted power supply.
The energy sector is undergoing a major transition, with many utilities committing to lowering emissions from their power generation. In this shift, nuclear energy stands out as one of the most reliable sources of large-scale clean electricity. Compared with other clean energy options, nuclear plants require significantly less land to generate the same amount of power. While all conventional energy sources produce waste during electricity generation, nuclear energy remains unique in that its waste is strictly regulated and carefully stored to ensure safety.
Amid the rising importance of nuclear energy in clean electricity generation, let’s focus on Constellation Energy Corporation (CEG - Free Report) and Vistra Energy Corp. (VST - Free Report) , which are prominent U.S. utilities with significant nuclear operations.
Constellation Energy holds a leading position in clean, carbon-free power generation in the United States. The company operates the nation’s largest fleet of nuclear power plants, delivering reliable, around-the-clock electricity to customers, with an average capacity factor exceeding 93%. It has also issued green bonds to support financing for its nuclear energy projects. Beyond nuclear power, the company is expanding into emerging areas such as clean hydrogen and energy storage to strengthen its clean energy portfolio.
Vistra Energy is emerging as a significant player in the nuclear energy sector. Its 2023 acquisition of Energy Harbor greatly expanded Vistra Energy’s nuclear portfolio and led to the creation of a dedicated subsidiary, Vistra Vision, focused on zero-carbon power generation. The company is also exploring clean hydrogen projects linked to its nuclear operations.
Both companies are major players in the utility sector. Let us take a closer look at their fundamentals to evaluate which stock presents the stronger investment opportunity for investors.
CEG & VST’s Earnings Growth Projections
The Zacks Consensus Estimate for Constellation Energy’s 2026 and 2027 earnings indicates year-over-year growth of 23.86% and 11.45%, respectively. Long-term (three to five years) earnings growth per share is pegged at 15.42%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Vistra Energy’s 2026 and 2027 earnings implies year-over-year growth of 65.59% and 26.07%, respectively. Long-term earnings growth per share is pegged at 18.89%.
Image Source: Zacks Investment Research
Nuclear Energy Generation Capacity
Constellation Energy has a total generation capacity of nearly 31,676 MWhs at the end of 2025, out of that 22,069 MWhs or 69.7% comes from nuclear energy.
Vistra Energy has a total generation capacity of 43,641 MWh at the end of 2025, out of which 6,448 MWh or 15% came from nuclear energy units.
Return on Equity
Return on Equity (“ROE”) is an important measure of financial performance that indicates how efficiently a company converts shareholder equity into profits. It highlights management’s effectiveness in utilizing invested capital to grow earnings and enhance shareholder value.
CEG’s current ROE is 20.77% compared with VST’s 81.09%.
Long-Term Capital Expenditure Plans
Constellation Energy’s strategic investment plans and focus on expanding its renewable portfolio drive its earnings performance. The company expects capital expenditures of nearly $5.7 billion and $4.7 billion for 2026 and 2027, respectively. Nearly 29% of projected capital expenditures are for the acquisition of nuclear fuel, which includes additional nuclear fuel to increase inventory levels.
Vistra Energy plans to invest nearly $2.6 billion in 2026 to maintain its nuclear assets, to procure nuclear fuel and for solar and energy storage development.
Valuation
Constellation Energy currently appears to trade at a premium compared with Vistra Energy on a Price/Earnings Forward 12-month basis. (P/E- F12M).
CEG and VST are currently trading at 24.71X and 16.41X, respectively.
Image Source: Zacks Investment Research
CEG & VST’s Dividend Yield
Utility companies generally distribute dividends and increase shareholders’ value. Currently, the dividend yield for Constellation Energy is 0.59%, while the same for Vistra Energy is 0.60%. The dividend yields of both companies are lower than the Zacks S&P 500 composite’s average of 1.49%.
Price Performance
In the past three months, VST’s shares have lost 5.6%, narrower than 18.2% decline of CEG’s shares.
Price Performance (Three months)
Image Source: Zacks Investment Research
Summing Up
CEG's substantial nuclear capacity, efficient operations and systematic capital investment to strengthen its nuclear generation capacity position it as a leader in the transition to clean energy. VST is also actively pursuing opportunities in clean energy to enhance its growth prospects. Both CEG and VST are major energy providers with substantial investments in nuclear power generation, positioning them as key players in the clean energy transition.
Based on the above discussion, VST has a marginal edge over CEG, given its better earnings estimate movements, stronger ROE and a cheaper valuation. The weakness in the share price can be considered a perfect opportunity to invest in a quality stock in the energy space.
Vistra Energy and Constellation Energy currently have a Zacks Rank #3 (Hold) each.
View the Zacks #1 Rank List
Image: Bigstock
CEG vs. VST: Which Nuclear Stock Has the Edge in the Utility Sector?
Key Takeaways
Nuclear energy is emerging as a vital pillar of the utility sector as electricity demand rises and the transition to cleaner power accelerates. Unlike solar and wind, which depend on weather conditions, nuclear plants provide reliable, around-the-clock electricity, ensuring a steady and uninterrupted power supply.
The energy sector is undergoing a major transition, with many utilities committing to lowering emissions from their power generation. In this shift, nuclear energy stands out as one of the most reliable sources of large-scale clean electricity. Compared with other clean energy options, nuclear plants require significantly less land to generate the same amount of power. While all conventional energy sources produce waste during electricity generation, nuclear energy remains unique in that its waste is strictly regulated and carefully stored to ensure safety.
Amid the rising importance of nuclear energy in clean electricity generation, let’s focus on Constellation Energy Corporation (CEG - Free Report) and Vistra Energy Corp. (VST - Free Report) , which are prominent U.S. utilities with significant nuclear operations.
Constellation Energy holds a leading position in clean, carbon-free power generation in the United States. The company operates the nation’s largest fleet of nuclear power plants, delivering reliable, around-the-clock electricity to customers, with an average capacity factor exceeding 93%. It has also issued green bonds to support financing for its nuclear energy projects. Beyond nuclear power, the company is expanding into emerging areas such as clean hydrogen and energy storage to strengthen its clean energy portfolio.
Vistra Energy is emerging as a significant player in the nuclear energy sector. Its 2023 acquisition of Energy Harbor greatly expanded Vistra Energy’s nuclear portfolio and led to the creation of a dedicated subsidiary, Vistra Vision, focused on zero-carbon power generation. The company is also exploring clean hydrogen projects linked to its nuclear operations.
Both companies are major players in the utility sector. Let us take a closer look at their fundamentals to evaluate which stock presents the stronger investment opportunity for investors.
CEG & VST’s Earnings Growth Projections
The Zacks Consensus Estimate for Constellation Energy’s 2026 and 2027 earnings indicates year-over-year growth of 23.86% and 11.45%, respectively. Long-term (three to five years) earnings growth per share is pegged at 15.42%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Vistra Energy’s 2026 and 2027 earnings implies year-over-year growth of 65.59% and 26.07%, respectively. Long-term earnings growth per share is pegged at 18.89%.
Image Source: Zacks Investment Research
Nuclear Energy Generation Capacity
Constellation Energy has a total generation capacity of nearly 31,676 MWhs at the end of 2025, out of that 22,069 MWhs or 69.7% comes from nuclear energy.
Vistra Energy has a total generation capacity of 43,641 MWh at the end of 2025, out of which 6,448 MWh or 15% came from nuclear energy units.
Return on Equity
Return on Equity (“ROE”) is an important measure of financial performance that indicates how efficiently a company converts shareholder equity into profits. It highlights management’s effectiveness in utilizing invested capital to grow earnings and enhance shareholder value.
CEG’s current ROE is 20.77% compared with VST’s 81.09%.
Long-Term Capital Expenditure Plans
Constellation Energy’s strategic investment plans and focus on expanding its renewable portfolio drive its earnings performance. The company expects capital expenditures of nearly $5.7 billion and $4.7 billion for 2026 and 2027, respectively. Nearly 29% of projected capital expenditures are for the acquisition of nuclear fuel, which includes additional nuclear fuel to increase inventory levels.
Vistra Energy plans to invest nearly $2.6 billion in 2026 to maintain its nuclear assets, to procure nuclear fuel and for solar and energy storage development.
Valuation
Constellation Energy currently appears to trade at a premium compared with Vistra Energy on a Price/Earnings Forward 12-month basis. (P/E- F12M).
CEG and VST are currently trading at 24.71X and 16.41X, respectively.
Image Source: Zacks Investment Research
CEG & VST’s Dividend Yield
Utility companies generally distribute dividends and increase shareholders’ value. Currently, the dividend yield for Constellation Energy is 0.59%, while the same for Vistra Energy is 0.60%. The dividend yields of both companies are lower than the Zacks S&P 500 composite’s average of 1.49%.
Price Performance
In the past three months, VST’s shares have lost 5.6%, narrower than 18.2% decline of CEG’s shares.
Price Performance (Three months)
Image Source: Zacks Investment Research
Summing Up
CEG's substantial nuclear capacity, efficient operations and systematic capital investment to strengthen its nuclear generation capacity position it as a leader in the transition to clean energy. VST is also actively pursuing opportunities in clean energy to enhance its growth prospects. Both CEG and VST are major energy providers with substantial investments in nuclear power generation, positioning them as key players in the clean energy transition.
Based on the above discussion, VST has a marginal edge over CEG, given its better earnings estimate movements, stronger ROE and a cheaper valuation. The weakness in the share price can be considered a perfect opportunity to invest in a quality stock in the energy space.
Vistra Energy and Constellation Energy currently have a Zacks Rank #3 (Hold) each.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.