Black Hills Corporation (BKH)vsNRG Energy Inc. (NRG)
BKH
Black Hills Corporation
$74.31
-1.24%
UTILITIES · Cap: $5.65B
NRG
NRG Energy Inc.
$155.58
+4.41%
UTILITIES · Cap: $31.65B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 1230% more annual revenue ($30.71B vs $2.31B). BKH leads profitability with a 12.6% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.37. BKH earns a higher WallStSmart Score of 57/100 (C).
BKH
Buy57
out of 100
Grade: C
NRG
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+16.7%
Fair Value
$87.12
Current Price
$74.31
$12.81 discount
Margin of Safety
+59.0%
Fair Value
$391.91
Current Price
$155.58
$236.33 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 26.2%
Every $100 of equity generates 42 in profit
Areas to Watch
0.9% earnings growth
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Premium valuation, high expectations priced in
Distress zone — elevated risk
2.8% margin — thin
Operating margin of 4.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : BKH
The strongest argument for BKH centers on Price/Book, Operating Margin.
Bull Case : NRG
The strongest argument for NRG centers on Return on Equity. Revenue growth of 13.7% demonstrates continued momentum. PEG of 1.37 suggests the stock is reasonably priced for its growth.
Bear Case : BKH
The primary concerns for BKH are EPS Growth, PEG Ratio, Free Cash Flow.
Bear Case : NRG
The primary concerns for NRG are P/E Ratio, Altman Z-Score, Profit Margin. Thin 2.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
NRG carries more volatility with a beta of 1.34 — expect wider price swings.
NRG is growing revenue faster at 13.7% — sustainability is the question.
BKH generates stronger free cash flow (-102M), providing more financial flexibility.
Monitor UTILITIES - REGULATED GAS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BKH scores higher overall (57/100 vs 54/100). NRG offers better value entry with a 59.0% margin of safety. 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.
Black Hills Corporation
UTILITIES · UTILITIES - REGULATED GAS · USA
Black Hills Corporation is a natural gas and electric utility company in the United States. The company is headquartered in Rapid City, South Dakota.
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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