WallStSmart

NRG Energy Inc. (NRG)vsProcter & Gamble Company (PG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Procter & Gamble Company generates 182% more annual revenue ($86.72B vs $30.71B). PG leads profitability with a 19.2% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.34. PG earns a higher WallStSmart Score of 61/100 (C+).

NRG

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 6.0Value: 6.0Quality: 5.3
Piotroski: 5/9Altman Z: 1.70

PG

Buy

61

out of 100

Grade: C+

Growth: 5.3Profit: 8.5Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 3.01
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NRGUndervalued (+58.9%)

Margin of Safety

+58.9%

Fair Value

$391.20

Current Price

$138.11

$253.09 discount

UndervaluedFair: $391.20Overvalued
PGSignificantly Overvalued (-36.0%)

Margin of Safety

-36.0%

Fair Value

$107.43

Current Price

$146.42

$38.99 premium

UndervaluedFair: $107.43Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NRG1 strengths · Avg: 10.0/10
Return on EquityProfitability
41.5%10/10

Every $100 of equity generates 42 in profit

PG5 strengths · Avg: 9.2/10
Market CapQuality
$340.95B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
31.1%10/10

Every $100 of equity generates 31 in profit

Altman Z-ScoreHealth
3.0110/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
23.1%8/10

Strong operational efficiency at 23.1%

Free Cash FlowQuality
$3.03B8/10

Generating 3.0B in free cash flow

Areas to Watch

NRG4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.704/10

Distress zone — elevated risk

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
4.3%3/10

Operating margin of 4.3%

P/E RatioValuation
157.6x2/10

Premium valuation, high expectations priced in

PG1 concerns · Avg: 2.0/10
PEG RatioValuation
4.152/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : PG

The strongest argument for PG centers on Market Cap, Return on Equity, Altman Z-Score. Profitability is solid with margins at 19.2% and operating margin at 23.1%.

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 : PG

The primary concerns for PG are PEG Ratio.

Key Dynamics to Monitor

NRG profiles as a value stock while PG is a mature play — different risk/reward profiles.

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.

PG generates stronger free cash flow (3.0B), providing more financial flexibility.

Bottom Line

PG scores higher overall (61/100 vs 56/100), backed by strong 19.2% margins. 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.

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.

Procter & Gamble Company

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. It specializes in a wide range of personal health, consumer health, personal care, and hygiene products; these products are organized into several segments including Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine, & Family Care. Before the sale of Pringles to Kellogg's, its product portfolio also included food, snacks, and beverages.

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