NRG Energy Inc. (NRG)vsU.S. Bancorp (USB)
NRG
NRG Energy Inc.
$138.11
-2.64%
UTILITIES · Cap: $30.18B
USB
U.S. Bancorp
$55.53
+0.40%
FINANCIAL SERVICES · Cap: $85.86B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 15% more annual revenue ($30.71B vs $26.65B). USB leads profitability with a 29.3% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.34. USB earns a higher WallStSmart Score of 71/100 (B).
NRG
Buy56
out of 100
Grade: C
USB
Strong Buy71
out of 100
Grade: B
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 USB.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 42 in profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 37.8%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 1.3B 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
4.6% revenue growth
Distress zone — elevated risk
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 : USB
The strongest argument for USB centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 29.3% and operating margin at 37.8%.
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 : USB
The primary concerns for USB are PEG Ratio, Revenue Growth, Altman Z-Score.
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.
USB generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor UTILITIES - INDEPENDENT POWER PRODUCERS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
USB scores higher overall (71/100 vs 56/100), backed by strong 29.3% margins. NRG offers better value entry with a 58.9% margin of safety. 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.
U.S. Bancorp
FINANCIAL SERVICES · BANKS - REGIONAL · USA
U.S. Bancorp is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.
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