Atmos Energy Corporation (ATO)vsNRG Energy Inc. (NRG)
ATO
Atmos Energy Corporation
$185.71
-0.76%
UTILITIES · Cap: $30.72B
NRG
NRG Energy Inc.
$149.01
-3.75%
UTILITIES · Cap: $31.65B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 531% more annual revenue ($30.71B vs $4.87B). ATO leads profitability with a 25.7% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.37. ATO earns a higher WallStSmart Score of 64/100 (C+).
ATO
Buy64
out of 100
Grade: C+
NRG
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ATO.
Margin of Safety
+59.0%
Fair Value
$391.91
Current Price
$149.01
$242.90 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 38.9%
Keeps 26 of every $100 in revenue as profit
Reasonable price relative to book value
Every $100 of equity generates 42 in profit
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
Premium valuation, high expectations priced in
Distress zone — elevated risk
2.8% margin — thin
Operating margin of 4.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : ATO
The strongest argument for ATO centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 25.7% and operating margin at 38.9%. Revenue growth of 14.2% demonstrates continued momentum.
Bull Case : NRG
The strongest argument for NRG centers on Return on Equity. Revenue growth of 13.7% demonstrates continued momentum. PEG of 1.37 suggests the stock is reasonably priced for its growth.
Bear Case : ATO
The primary concerns for ATO are PEG Ratio, Piotroski F-Score, Free Cash Flow.
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.
Key Dynamics to Monitor
ATO profiles as a mature stock while NRG is a value play — different risk/reward profiles.
NRG carries more volatility with a beta of 1.34 — expect wider price swings.
ATO is growing revenue faster at 14.2% — sustainability is the question.
NRG generates stronger free cash flow (-175M), providing more financial flexibility.
Bottom Line
ATO scores higher overall (64/100 vs 54/100), backed by strong 25.7% margins and 14.2% revenue growth. NRG offers better value entry with a 59.0% 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.
Atmos Energy Corporation
UTILITIES · UTILITIES - REGULATED GAS · USA
Atmos Energy Corporation, headquartered in Dallas, Texas, is one of the United States' largest natural-gas-only distributors.
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.
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