Northrop Grumman Corporation (NOC)vsNRG Energy Inc. (NRG)
NOC
Northrop Grumman Corporation
$549.52
-0.50%
INDUSTRIALS · Cap: $78.44B
NRG
NRG Energy Inc.
$138.11
-2.64%
UTILITIES · Cap: $30.18B
Smart Verdict
WallStSmart Research — data-driven comparison
Northrop Grumman Corporation generates 38% more annual revenue ($42.37B vs $30.71B). NOC leads profitability with a 10.8% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.34. NOC earns a higher WallStSmart Score of 63/100 (C+).
NOC
Buy63
out of 100
Grade: C+
NRG
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.9%
Fair Value
$421.87
Current Price
$549.52
$127.65 premium
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
Earnings expanding 84.9% YoY
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Attractively priced relative to earnings
Every $100 of equity generates 42 in profit
Areas to Watch
4.4% revenue growth
Grey zone — moderate risk
Elevated debt levels
Weak financial health signals
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 : NOC
The strongest argument for NOC centers on EPS Growth, Market Cap, Return on Equity.
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 : NOC
The primary concerns for NOC are Revenue Growth, Altman Z-Score, Debt/Equity.
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
NRG carries more volatility with a beta of 1.31 — expect wider price swings.
NRG is growing revenue faster at 13.7% — sustainability is the question.
NRG generates stronger free cash flow (-486M), providing more financial flexibility.
Monitor AEROSPACE & DEFENSE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NOC scores higher overall (63/100 vs 56/100). 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.
Northrop Grumman Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Northrop Grumman Corporation (NYSE: NOC) is an American multinational aerospace and defense technology company.
Visit Website →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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