WallStSmart

NRG Energy Inc. (NRG)vsEssential Utilities Inc (WTRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 1190% more annual revenue ($33.12B vs $2.57B). WTRG leads profitability with a 21.6% profit margin vs 2.6%. NRG appears more attractively valued with a PEG of 0.46. NRG earns a higher WallStSmart Score of 60/100 (C+).

NRG

Buy

60

out of 100

Grade: C+

Growth: 3.3Profit: 6.0Value: 6.3Quality: 4.0
Piotroski: 4/9Altman Z: 1.61

WTRG

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 6.5Value: 6.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.75
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for NRG.

WTRGUndervalued (+45.1%)

Margin of Safety

+45.1%

Fair Value

$68.22

Current Price

$41.07

$27.15 discount

UndervaluedFair: $68.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NRG1 strengths · Avg: 10.0/10
PEG RatioValuation
0.4610/10

Growing faster than its price suggests

WTRG3 strengths · Avg: 9.0/10
Operating MarginProfitability
35.4%10/10

Strong operational efficiency at 35.4%

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

NRG4 concerns · Avg: 3.3/10
P/E RatioValuation
31.2x4/10

Premium valuation, high expectations priced in

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%

WTRG4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.1%4/10

3.1% revenue growth

Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Debt/EquityHealth
1.213/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 0.46 suggests the stock is reasonably priced for its growth.

Bull Case : WTRG

The strongest argument for WTRG centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.6% and operating margin at 35.4%.

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 : WTRG

The primary concerns for WTRG are Revenue Growth, Return on Equity, Debt/Equity.

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

NRG scores higher overall (60/100 vs 56/100) and 11.0% revenue growth. WTRG offers better value entry with a 45.1% 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.

Essential Utilities Inc

UTILITIES · UTILITIES - REGULATED WATER · USA

Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.

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