WallStSmart

Moodys Corporation (MCO)vsNRG Energy Inc. (NRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 290% more annual revenue ($30.71B vs $7.87B). MCO leads profitability with a 31.7% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.34. MCO earns a higher WallStSmart Score of 61/100 (C+).

MCO

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 9.5Value: 4.3Quality: 6.8
Piotroski: 6/9Altman Z: 2.99

NRG

Buy

56

out of 100

Grade: C

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for MCO.

NRGUndervalued (+58.9%)

Margin of Safety

+58.9%

Fair Value

$391.20

Current Price

$138.11

$253.09 discount

UndervaluedFair: $391.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCO4 strengths · Avg: 9.8/10
Return on EquityProfitability
71.4%10/10

Every $100 of equity generates 71 in profit

Profit MarginProfitability
31.7%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
45.7%10/10

Strong operational efficiency at 45.7%

Market CapQuality
$79.84B9/10

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

MCO3 concerns · Avg: 3.3/10
PEG RatioValuation
2.044/10

Expensive relative to growth rate

P/E RatioValuation
32.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
26.3x2/10

Trading at 26.3x book value

NRG4 concerns · Avg: 3.0/10
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%

P/E RatioValuation
157.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : MCO

The strongest argument for MCO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.7% and operating margin at 45.7%.

Bull Case : NRG

The strongest argument for NRG centers on Return on Equity. Revenue growth of 13.7% demonstrates continued momentum. PEG of 1.34 suggests the stock is reasonably priced for its growth.

Bear Case : MCO

The primary concerns for MCO are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : NRG

The primary concerns for NRG are Altman Z-Score, Profit Margin, Operating Margin. A P/E of 157.6x leaves little room for execution misses. Thin 2.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

MCO profiles as a mature stock while NRG is a value play — different risk/reward profiles.

MCO carries more volatility with a beta of 1.37 — expect wider price swings.

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

MCO generates stronger free cash flow (844M), providing more financial flexibility.

Bottom Line

MCO scores higher overall (61/100 vs 56/100), backed by strong 31.7% margins. NRG offers better value entry with a 58.9% 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.

Moodys Corporation

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

Moody's Corporation, often referred to as Moody's, is an American business and financial services company. It is the holding company for Moody's Investors Service (MIS), an American credit rating agency, and Moody's Analytics (MA), an American provider of financial analysis software and services.

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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