WallStSmart

Constellation Energy Corp (CEG)vsNRG Energy Inc. (NRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 20% more annual revenue ($30.71B vs $25.53B). CEG leads profitability with a 9.1% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.35. NRG earns a higher WallStSmart Score of 54/100 (C-).

CEG

Hold

43

out of 100

Grade: D

Growth: 6.0Profit: 6.5Value: 4.7Quality: 7.0
Piotroski: 6/9Altman Z: 1.14

NRG

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 6.0Value: 7.3Quality: 5.3
Piotroski: 5/9Altman Z: 1.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CEGSignificantly Overvalued (-450.2%)

Margin of Safety

-450.2%

Fair Value

$50.32

Current Price

$281.99

$231.67 premium

UndervaluedFair: $50.32Overvalued
NRGSignificantly Overvalued (-480.3%)

Margin of Safety

-480.3%

Fair Value

$27.68

Current Price

$145.80

$118.12 premium

UndervaluedFair: $27.68Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CEG1 strengths · Avg: 9.0/10
Market CapQuality
$110.62B9/10

Large-cap with strong market position

NRG1 strengths · Avg: 10.0/10
Return on EquityProfitability
41.5%10/10

Every $100 of equity generates 42 in profit

Areas to Watch

CEG4 concerns · Avg: 2.0/10
PEG RatioValuation
3.742/10

Expensive relative to growth rate

P/E RatioValuation
41.3x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-48.9%2/10

Earnings declined 48.9%

Free Cash FlowQuality
$-181.00M2/10

Negative free cash flow — burning cash

NRG4 concerns · Avg: 3.5/10
P/E RatioValuation
38.0x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.704/10

Distress zone — elevated risk

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
4.3%3/10

Operating margin of 4.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : CEG

The strongest argument for CEG centers on Market Cap. Revenue growth of 12.9% demonstrates continued momentum.

Bull Case : NRG

The strongest argument for NRG centers on Return on Equity. Revenue growth of 13.7% demonstrates continued momentum. PEG of 1.35 suggests the stock is reasonably priced for its growth.

Bear Case : CEG

The primary concerns for CEG are PEG Ratio, P/E Ratio, EPS Growth. A P/E of 41.3x leaves little room for execution misses.

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 1.26 — expect wider price swings.

NRG is growing revenue faster at 13.7% — sustainability is the question.

NRG generates stronger free cash flow (-175M), providing more financial flexibility.

Monitor UTILITIES - INDEPENDENT POWER PRODUCERS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NRG scores higher overall (54/100 vs 43/100) and 13.7% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Constellation Energy Corp

UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA

Constellation Energy Corporation is an energy producer in the United States. The company is headquartered in Baltimore, Maryland.

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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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