NRG Energy Inc. (NRG)vsUnion Pacific Corporation (UNP)
NRG
NRG Energy Inc.
$151.04
-0.06%
UTILITIES · Cap: $32.08B
UNP
Union Pacific Corporation
$241.33
+0.69%
INDUSTRIALS · Cap: $142.22B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 25% more annual revenue ($30.71B vs $24.51B). UNP leads profitability with a 29.1% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.29. UNP earns a higher WallStSmart Score of 60/100 (C).
NRG
Buy54
out of 100
Grade: C-
UNP
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-490.6%
Fair Value
$27.20
Current Price
$151.04
$123.84 premium
Margin of Safety
-13.1%
Fair Value
$211.98
Current Price
$241.33
$29.35 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 42 in profit
Every $100 of equity generates 40 in profit
Strong operational efficiency at 40.9%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 1.2B in free cash flow
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
Revenue declined 0.6%
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 1.29 suggests the stock is reasonably priced for its growth.
Bull Case : UNP
The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.1% and operating margin at 40.9%.
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 : UNP
The primary concerns for UNP are PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
NRG profiles as a value stock while UNP is a declining play — different risk/reward profiles.
NRG carries more volatility with a beta of 1.26 — expect wider price swings.
NRG is growing revenue faster at 13.7% — sustainability is the question.
UNP generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
UNP scores higher overall (60/100 vs 54/100), backed by strong 29.1% margins. 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.
Union Pacific Corporation
INDUSTRIALS · RAILROADS · USA
The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.
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