NRG Energy Inc. (NRG)vsPublic Service Enterprise Group Inc (PEG)
NRG
NRG Energy Inc.
$155.58
+4.41%
UTILITIES · Cap: $31.65B
PEG
Public Service Enterprise Group Inc
$81.66
+2.60%
UTILITIES · Cap: $39.73B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 152% more annual revenue ($30.71B vs $12.17B). PEG leads profitability with a 17.3% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.37. PEG earns a higher WallStSmart Score of 64/100 (C+).
NRG
Buy54
out of 100
Grade: C-
PEG
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+59.0%
Fair Value
$391.91
Current Price
$155.58
$236.33 discount
Margin of Safety
-48.1%
Fair Value
$56.80
Current Price
$81.66
$24.86 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
18.3% revenue growth
Areas to Watch
Premium valuation, high expectations priced in
Distress zone — elevated risk
2.8% margin — thin
Operating margin of 4.3%
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
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 1.37 suggests the stock is reasonably priced for its growth.
Bull Case : PEG
The strongest argument for PEG centers on Price/Book, Revenue Growth. Profitability is solid with margins at 17.3% and operating margin at 18.1%. Revenue growth of 18.3% demonstrates continued momentum.
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.
Bear Case : PEG
The primary concerns for PEG are PEG Ratio, Free Cash Flow, Altman Z-Score.
Key Dynamics to Monitor
NRG profiles as a value stock while PEG is a growth play — different risk/reward profiles.
NRG carries more volatility with a beta of 1.34 — expect wider price swings.
PEG is growing revenue faster at 18.3% — sustainability is the question.
NRG generates stronger free cash flow (-175M), providing more financial flexibility.
Bottom Line
PEG scores higher overall (64/100 vs 54/100), backed by strong 17.3% margins and 18.3% 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.
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.
Public Service Enterprise Group Inc
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
The Public Service Enterprise Group (PSEG) is a publicly traded diversified energy company headquartered in Newark, New Jersey.
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