NRG Energy Inc. (NRG)vsNorthWestern Corporation (NWE)
NRG
NRG Energy Inc.
$138.11
-2.64%
UTILITIES · Cap: $30.18B
NWE
NorthWestern Corporation
$72.39
-0.03%
UTILITIES · Cap: $4.37B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 1771% more annual revenue ($30.71B vs $1.64B). NWE leads profitability with a 10.2% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.34. NRG earns a higher WallStSmart Score of 56/100 (C).
NRG
Buy56
out of 100
Grade: C
NWE
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.9%
Fair Value
$391.20
Current Price
$138.11
$253.09 discount
Margin of Safety
-5.1%
Fair Value
$65.14
Current Price
$72.39
$7.25 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 42 in profit
Reasonable price relative to book value
Strong operational efficiency at 23.0%
Areas to Watch
Distress zone — elevated risk
2.8% margin — thin
Operating margin of 4.3%
Premium valuation, high expectations priced in
Moderate valuation
ROE of 5.8% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : NWE
The strongest argument for NWE centers on Price/Book, Operating Margin.
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.
Bear Case : NWE
The primary concerns for NWE are P/E Ratio, Return on Equity, Debt/Equity.
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.
NWE generates stronger free cash flow (43M), providing more financial flexibility.
Monitor UTILITIES - INDEPENDENT POWER PRODUCERS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NRG scores higher overall (56/100 vs 55/100) and 13.7% revenue growth. 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.
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.
NorthWestern Corporation
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
NorthWestern Corporation, doing business as NorthWestern Energy, provides electricity and natural gas to residential, commercial and industrial customers. The company is headquartered in Sioux Falls, South Dakota.
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