WallStSmart

NRG Energy Inc. (NRG)vsPPL Corporation (PPL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 252% more annual revenue ($33.12B vs $9.40B). PPL leads profitability with a 13.5% profit margin vs 2.6%. NRG appears more attractively valued with a PEG of 0.40. PPL earns a higher WallStSmart Score of 67/100 (B-).

NRG

Buy

60

out of 100

Grade: C+

Growth: 3.3Profit: 6.0Value: 7.0Quality: 4.0
Piotroski: 4/9Altman Z: 1.61

PPL

Strong Buy

67

out of 100

Grade: B-

Growth: 5.3Profit: 6.5Value: 4.7Quality: 3.5
Piotroski: 4/9Altman Z: 0.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for NRG.

PPLSignificantly Overvalued (-41.9%)

Margin of Safety

-41.9%

Fair Value

$25.37

Current Price

$32.88

$7.51 premium

UndervaluedFair: $25.37Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NRG1 strengths · Avg: 10.0/10
PEG RatioValuation
0.4010/10

Growing faster than its price suggests

PPL3 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.6%8/10

Strong operational efficiency at 23.6%

EPS GrowthGrowth
21.2%8/10

Earnings expanding 21.2% YoY

Areas to Watch

NRG4 concerns · Avg: 3.3/10
P/E RatioValuation
26.9x4/10

Moderate valuation

Altman Z-ScoreHealth
1.614/10

Distress zone — elevated risk

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

EPS GrowthGrowth
-85.6%2/10

Earnings declined 85.6%

PPL4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Debt/EquityHealth
1.323/10

Elevated debt levels

Free Cash FlowQuality
$-475.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.742/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : NRG

The strongest argument for NRG centers on PEG Ratio. Revenue growth of 11.0% demonstrates continued momentum. PEG of 0.40 suggests the stock is reasonably priced for its growth.

Bull Case : PPL

The strongest argument for PPL centers on Price/Book, Operating Margin, EPS Growth. PEG of 1.22 suggests the stock is reasonably priced for its growth.

Bear Case : NRG

The primary concerns for NRG are P/E Ratio, Altman Z-Score, Profit Margin. Debt-to-equity of 4.83 is elevated, increasing financial risk. Thin 2.6% margins leave little buffer for downturns.

Bear Case : PPL

The primary concerns for PPL are Revenue Growth, Debt/Equity, Free Cash Flow.

Key Dynamics to Monitor

NRG carries more volatility with a beta of 1.17 — expect wider price swings.

NRG is growing revenue faster at 11.0% — sustainability is the question.

NRG generates stronger free cash flow (779M), providing more financial flexibility.

Monitor UTILITIES - INDEPENDENT POWER PRODUCERS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PPL scores higher overall (67/100 vs 60/100). Both earn "Strong 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.

PPL Corporation

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

PPL Corporation is an energy company headquartered in Allentown, Pennsylvania, United States.

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