WallStSmart

American States Water Company (AWR)vsNRG Energy Inc. (NRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 4567% more annual revenue ($30.71B vs $658.07M). AWR leads profitability with a 19.8% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.37. AWR earns a higher WallStSmart Score of 56/100 (C).

AWR

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 4.0Quality: 4.5
Piotroski: 2/9Altman Z: 1.17

NRG

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 6.0Value: 6.7Quality: 5.3
Piotroski: 5/9Altman Z: 1.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWRFair Value (-3.5%)

Margin of Safety

-3.5%

Fair Value

$68.55

Current Price

$75.29

$6.74 premium

UndervaluedFair: $68.55Overvalued
NRGUndervalued (+59.0%)

Margin of Safety

+59.0%

Fair Value

$391.91

Current Price

$155.58

$236.33 discount

UndervaluedFair: $391.91Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWR2 strengths · Avg: 8.0/10
Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.8%8/10

Strong operational efficiency at 28.8%

NRG1 strengths · Avg: 10.0/10
Return on EquityProfitability
41.5%10/10

Every $100 of equity generates 42 in profit

Areas to Watch

AWR4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.862/10

Expensive relative to growth rate

EPS GrowthGrowth
-1.2%2/10

Earnings declined 1.2%

Free Cash FlowQuality
$-35.98M2/10

Negative free cash flow — burning cash

NRG4 concerns · Avg: 3.5/10
P/E RatioValuation
37.2x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.704/10

Distress zone — elevated risk

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
4.3%3/10

Operating margin of 4.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : AWR

The strongest argument for AWR centers on Price/Book, Operating Margin. Profitability is solid with margins at 19.8% and operating margin at 28.8%. Revenue growth of 14.8% 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 : AWR

The primary concerns for AWR are Piotroski F-Score, PEG Ratio, EPS Growth.

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

AWR 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.

AWR is growing revenue faster at 14.8% — sustainability is the question.

AWR generates stronger free cash flow (-36M), providing more financial flexibility.

Bottom Line

AWR scores higher overall (56/100 vs 54/100), backed by strong 19.8% margins and 14.8% 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.

American States Water Company

UTILITIES · UTILITIES - REGULATED WATER · USA

American States Water Company provides water and electricity services to residential, commercial, industrial and other customers in the United States. The company is headquartered in San Dimas, California.

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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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