NRG Energy Inc. (NRG)vsConstellation Brands Inc Class A (STZ)
NRG
NRG Energy Inc.
$138.11
-2.64%
UTILITIES · Cap: $30.18B
STZ
Constellation Brands Inc Class A
$148.21
-1.36%
CONSUMER DEFENSIVE · Cap: $25.88B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 236% more annual revenue ($30.71B vs $9.14B). STZ leads profitability with a 18.5% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.34. STZ earns a higher WallStSmart Score of 56/100 (C).
NRG
Buy56
out of 100
Grade: C
STZ
Buy56
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
Intrinsic value data unavailable for STZ.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 42 in profit
Every $100 of equity generates 23 in profit
Attractively priced relative to earnings
Strong operational efficiency at 26.7%
Areas to Watch
Distress zone — elevated risk
2.8% margin — thin
Operating margin of 4.3%
Premium valuation, high expectations priced in
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 11.3%
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 : STZ
The strongest argument for STZ centers on Return on Equity, P/E Ratio, Operating Margin. Profitability is solid with margins at 18.5% and operating margin at 26.7%.
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 : STZ
The primary concerns for STZ are Altman Z-Score, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
NRG profiles as a value stock while STZ is a declining 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.
STZ generates stronger free cash flow (344M), providing more financial flexibility.
Bottom Line
NRG scores higher overall (56/100 vs 56/100) 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.
Constellation Brands Inc Class A
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.
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