WallStSmart

Edison International (EIX)vsNRG Energy Inc. (NRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 71% more annual revenue ($33.12B vs $19.42B). EIX leads profitability with a 19.3% profit margin vs 2.6%. NRG appears more attractively valued with a PEG of 0.46. EIX earns a higher WallStSmart Score of 71/100 (B).

EIX

Strong Buy

71

out of 100

Grade: B

Growth: 5.3Profit: 8.0Value: 5.3Quality: 3.0
Piotroski: 4/9Altman Z: 0.68

NRG

Buy

60

out of 100

Grade: C+

Growth: 3.3Profit: 6.0Value: 6.3Quality: 4.0
Piotroski: 4/9Altman Z: 1.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EIXOvervalued (-12.8%)

Margin of Safety

-12.8%

Fair Value

$59.45

Current Price

$56.00

$3.45 premium

UndervaluedFair: $59.45Overvalued

Intrinsic value data unavailable for NRG.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EIX5 strengths · Avg: 9.4/10
P/E RatioValuation
6.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
55.1%10/10

Earnings expanding 55.1% YoY

Return on EquityProfitability
21.9%9/10

Every $100 of equity generates 22 in profit

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

NRG1 strengths · Avg: 10.0/10
PEG RatioValuation
0.4610/10

Growing faster than its price suggests

Areas to Watch

EIX4 concerns · Avg: 2.0/10
PEG RatioValuation
2.522/10

Expensive relative to growth rate

Revenue GrowthGrowth
-4.1%2/10

Revenue declined 4.1%

Free Cash FlowQuality
$-576.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.682/10

Distress zone — elevated risk

NRG4 concerns · Avg: 3.3/10
P/E RatioValuation
31.2x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.614/10

Distress zone — elevated risk

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

EPS GrowthGrowth
-85.6%2/10

Earnings declined 85.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : EIX

The strongest argument for EIX centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 19.3% and operating margin at 26.9%.

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 : EIX

The primary concerns for EIX are PEG Ratio, Revenue Growth, Free Cash Flow. Debt-to-equity of 2.48 is elevated, increasing financial risk.

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

EIX profiles as a declining 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

EIX scores higher overall (71/100 vs 60/100), backed by strong 19.3% margins. Both earn "Strong 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.

Edison International

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Edison International is a public utility holding company based in Rosemead, California. Its subsidiaries include Southern California Edison, and unregulated non-utility business assets Edison Energy.

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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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