Morgan Stanley (MS)vsNRG Energy Inc. (NRG)
MS
Morgan Stanley
$193.09
+1.54%
FINANCIAL SERVICES · Cap: $299.95B
NRG
NRG Energy Inc.
$138.11
-2.64%
UTILITIES · Cap: $30.18B
Smart Verdict
WallStSmart Research — data-driven comparison
Morgan Stanley generates 138% more annual revenue ($73.17B vs $30.71B). MS leads profitability with a 24.7% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.34. MS earns a higher WallStSmart Score of 73/100 (B).
MS
Strong Buy73
out of 100
Grade: B
NRG
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for MS.
Margin of Safety
+58.9%
Fair Value
$391.20
Current Price
$138.11
$253.09 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 40.6%
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
16.3% revenue growth
Every $100 of equity generates 42 in profit
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
2.8% margin — thin
Operating margin of 4.3%
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : MS
The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 40.6%. Revenue growth of 16.3% 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 1.34 suggests the stock is reasonably priced for its growth.
Bear Case : MS
The primary concerns for MS are PEG Ratio, Piotroski F-Score, Free Cash Flow.
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
MS profiles as a growth stock while NRG is a value play — different risk/reward profiles.
NRG carries more volatility with a beta of 1.31 — expect wider price swings.
MS is growing revenue faster at 16.3% — sustainability is the question.
NRG generates stronger free cash flow (-486M), providing more financial flexibility.
Bottom Line
MS scores higher overall (73/100 vs 56/100), backed by strong 24.7% margins and 16.3% revenue growth. NRG offers better value entry with a 58.9% margin of safety. 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.
Morgan Stanley
FINANCIAL SERVICES · CAPITAL MARKETS · USA
Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City.
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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