American Water Works (AWK)vsNRG Energy Inc. (NRG)
AWK
American Water Works
$124.47
+1.82%
UTILITIES · Cap: $24.67B
NRG
NRG Energy Inc.
$133.36
+3.93%
UTILITIES · Cap: $26.47B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 522% more annual revenue ($32.38B vs $5.21B). AWK leads profitability with a 21.2% profit margin vs 0.7%. NRG appears more attractively valued with a PEG of 0.43. AWK earns a higher WallStSmart Score of 60/100 (C).
AWK
Buy60
out of 100
Grade: C
NRG
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.5%
Fair Value
$100.98
Current Price
$124.47
$23.49 premium
Intrinsic value data unavailable for NRG.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.2%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Growing faster than its price suggests
19.5% revenue growth
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Earnings declined 4.8%
Distress zone — elevated risk
ROE of 4.9% — below average capital efficiency
0.7% margin — thin
Operating margin of 3.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : AWK
The strongest argument for AWK centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.2% and operating margin at 33.2%.
Bull Case : NRG
The strongest argument for NRG centers on PEG Ratio, Revenue Growth. Revenue growth of 19.5% demonstrates continued momentum. PEG of 0.43 suggests the stock is reasonably priced for its growth.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Debt/Equity, Piotroski F-Score.
Bear Case : NRG
The primary concerns for NRG are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 136.4x leaves little room for execution misses. Debt-to-equity of 4.79 is elevated, increasing financial risk.
Key Dynamics to Monitor
AWK profiles as a mature stock while NRG is a growth play — different risk/reward profiles.
NRG carries more volatility with a beta of 1.22 — expect wider price swings.
NRG is growing revenue faster at 19.5% — sustainability is the question.
AWK generates stronger free cash flow (-354M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (60/100 vs 51/100), backed by strong 21.2% 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.
American Water Works
UTILITIES · UTILITIES - REGULATED WATER · USA
American Water is an American public utility company operating in the United States and Canada.
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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