American Water Works (AWK)vsNRG Energy Inc. (NRG)
AWK
American Water Works
$137.69
-1.54%
UTILITIES · Cap: $27.90B
NRG
NRG Energy Inc.
$113.46
+1.62%
UTILITIES · Cap: $25.15B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 527% more annual revenue ($33.12B vs $5.28B). AWK leads profitability with a 21.3% profit margin vs 2.6%. NRG appears more attractively valued with a PEG of 0.46. AWK earns a higher WallStSmart Score of 64/100 (C+).
AWK
Buy64
out of 100
Grade: C+
NRG
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.4%
Fair Value
$101.07
Current Price
$137.69
$36.62 premium
Intrinsic value data unavailable for NRG.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 40.7%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
Distress zone — elevated risk
2.6% margin — thin
Earnings declined 85.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : AWK
The strongest argument for AWK centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.3% and operating margin at 40.7%.
Bull Case : NRG
The strongest argument for NRG centers on PEG Ratio. Revenue growth of 11.0% demonstrates continued momentum. PEG of 0.46 suggests the stock is reasonably priced for its growth.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Debt/Equity, Piotroski F-Score.
Bear Case : NRG
The primary concerns for NRG are P/E Ratio, Altman Z-Score, Profit Margin. Debt-to-equity of 4.83 is elevated, increasing financial risk. Thin 2.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
AWK profiles as a mature stock while NRG is a value play — different risk/reward profiles.
NRG carries more volatility with a beta of 1.17 — expect wider price swings.
NRG is growing revenue faster at 11.0% — sustainability is the question.
NRG generates stronger free cash flow (779M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (64/100 vs 60/100), backed by strong 21.3% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
American Water Works
UTILITIES · UTILITIES - REGULATED WATER · USA
American Water is an American public utility company operating in the United States and Canada.
NRG Energy Inc.
UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA
NRG Energy, Inc. is a large American energy company, headquartered in Houston, Texas. It was formerly the wholesale arm of Northern States Power Company (NSP), which became Xcel Energy, but became independent in 2000. NRG Energy is involved in energy generation and retail electricity.
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