NRG Energy Inc. (NRG)vsAT&T Inc. (T)
NRG
NRG Energy Inc.
$138.11
-2.64%
UTILITIES · Cap: $30.18B
T
AT&T Inc.
$25.16
-0.40%
COMMUNICATION SERVICES · Cap: $175.52B
Smart Verdict
WallStSmart Research — data-driven comparison
AT&T Inc. generates 312% more annual revenue ($126.53B vs $30.71B). T leads profitability with a 16.9% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.34. T earns a higher WallStSmart Score of 64/100 (C+).
NRG
Buy56
out of 100
Grade: C
T
Buy64
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
+21.5%
Fair Value
$32.17
Current Price
$25.16
$7.01 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 42 in profit
Attractively priced relative to earnings
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 22.7%
Generating 2.7B in free cash flow
Areas to Watch
Distress zone — elevated risk
2.8% margin — thin
Operating margin of 4.3%
Premium valuation, high expectations priced in
Expensive relative to growth rate
2.9% revenue growth
Earnings 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 : T
The strongest argument for T centers on P/E Ratio, Market Cap, Price/Book. Profitability is solid with margins at 16.9% and operating margin at 22.7%.
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 : T
The primary concerns for T are PEG Ratio, Revenue Growth, EPS Growth.
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.
T generates stronger free cash flow (2.7B), providing more financial flexibility.
Monitor UTILITIES - INDEPENDENT POWER PRODUCERS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
T scores higher overall (64/100 vs 56/100), backed by strong 16.9% 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.
AT&T Inc.
COMMUNICATION SERVICES · TELECOM SERVICES · USA
AT&T Inc. is an American multinational conglomerate holding company, Delaware-registered but headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world largest telecommunications company, and the second largest provider of mobile telephone services.
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