NewJersey Resources Corporation (NJR)vsNRG Energy Inc. (NRG)
NJR
NewJersey Resources Corporation
$55.40
-1.44%
UTILITIES · Cap: $5.59B
NRG
NRG Energy Inc.
$155.58
+4.41%
UTILITIES · Cap: $31.65B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 1327% more annual revenue ($30.71B vs $2.15B). NJR leads profitability with a 15.2% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.37. NJR earns a higher WallStSmart Score of 61/100 (C+).
NJR
Buy61
out of 100
Grade: C+
NRG
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-34.7%
Fair Value
$39.24
Current Price
$55.40
$16.16 premium
Margin of Safety
+59.0%
Fair Value
$391.91
Current Price
$155.58
$236.33 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 29.6%
Revenue surging 23.9% year-over-year
Every $100 of equity generates 42 in profit
Areas to Watch
Expensive relative to growth rate
Earnings declined 7.6%
Negative free cash flow — burning cash
Distress zone — elevated risk
Premium valuation, high expectations priced in
Distress zone — elevated risk
2.8% margin — thin
Operating margin of 4.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : NJR
The strongest argument for NJR centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 15.2% and operating margin at 29.6%. Revenue growth of 23.9% 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 1.37 suggests the stock is reasonably priced for its growth.
Bear Case : NJR
The primary concerns for NJR are PEG Ratio, EPS Growth, Free Cash Flow.
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
NJR profiles as a growth stock while NRG is a value play — different risk/reward profiles.
NRG carries more volatility with a beta of 1.34 — expect wider price swings.
NJR is growing revenue faster at 23.9% — sustainability is the question.
NJR generates stronger free cash flow (-140M), providing more financial flexibility.
Bottom Line
NJR scores higher overall (61/100 vs 54/100), backed by strong 15.2% margins and 23.9% revenue growth. NRG offers better value entry with a 59.0% 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.
NewJersey Resources Corporation
UTILITIES · UTILITIES - REGULATED GAS · USA
New Jersey Resources Corporation, an energy services portfolio company, provides regulated gas distribution and retail and wholesale energy services. The company is headquartered in Wall, New Jersey.
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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