WallStSmart

Entergy Corporation (ETR)vsNRG Energy Inc. (NRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 137% more annual revenue ($30.71B vs $12.95B). ETR leads profitability with a 13.6% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.29. NRG earns a higher WallStSmart Score of 54/100 (C-).

ETR

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 6.0Value: 4.0Quality: 3.8
Piotroski: 4/9Altman Z: 0.80

NRG

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 6.0Value: 4.0Quality: 5.3
Piotroski: 5/9Altman Z: 1.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ETRSignificantly Overvalued (-276.8%)

Margin of Safety

-276.8%

Fair Value

$26.59

Current Price

$109.88

$83.29 premium

UndervaluedFair: $26.59Overvalued
NRGSignificantly Overvalued (-490.6%)

Margin of Safety

-490.6%

Fair Value

$27.20

Current Price

$147.74

$120.54 premium

UndervaluedFair: $27.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ETR1 strengths · Avg: 8.0/10
Price/BookValuation
2.9x8/10

Reasonable price relative to book value

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

Every $100 of equity generates 42 in profit

Areas to Watch

ETR4 concerns · Avg: 3.0/10
PEG RatioValuation
2.094/10

Expensive relative to growth rate

P/E RatioValuation
28.1x4/10

Moderate valuation

EPS GrowthGrowth
-20.8%2/10

Earnings declined 20.8%

Free Cash FlowQuality
$-996.50M2/10

Negative free cash flow — burning cash

NRG4 concerns · Avg: 3.5/10
P/E RatioValuation
36.9x4/10

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 : ETR

The strongest argument for ETR centers on Price/Book.

Bull Case : NRG

The strongest argument for NRG centers on Return on Equity. Revenue growth of 13.7% demonstrates continued momentum. PEG of 1.29 suggests the stock is reasonably priced for its growth.

Bear Case : ETR

The primary concerns for ETR are PEG Ratio, P/E Ratio, EPS Growth.

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 - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ETR scores higher overall (54/100 vs 54/100). 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.

Entergy Corporation

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Entergy Corporation is a Fortune 500 integrated energy company engaged primarily in electric power production and retail distribution operations in the Deep South of the United States.

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.

Want to dig deeper into these stocks?