WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 4649% more annual revenue ($33.12B vs $697.48M). AWR leads profitability with a 20.5% profit margin vs 2.6%. NRG appears more attractively valued with a PEG of 0.46. AWR earns a higher WallStSmart Score of 66/100 (B-).

AWR

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 4.0Quality: 4.5
Piotroski: 4/9Altman Z: 1.23

NRG

Buy

60

out of 100

Grade: C+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWROvervalued (-9.1%)

Margin of Safety

-9.1%

Fair Value

$65.05

Current Price

$86.48

$21.43 premium

UndervaluedFair: $65.05Overvalued

Intrinsic value data unavailable for NRG.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWR3 strengths · Avg: 9.0/10
Operating MarginProfitability
35.8%10/10

Strong operational efficiency at 35.8%

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

EPS GrowthGrowth
25.8%8/10

Earnings expanding 25.8% YoY

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

Growing faster than its price suggests

Areas to Watch

AWR3 concerns · Avg: 2.0/10
PEG RatioValuation
2.982/10

Expensive relative to growth rate

Free Cash FlowQuality
$-3.60M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.232/10

Distress zone — elevated risk

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%

Comparative Analysis Report

WallStSmart Research

Bull Case : AWR

The strongest argument for AWR centers on Operating Margin, Profit Margin, EPS Growth. Profitability is solid with margins at 20.5% and operating margin at 35.8%. Revenue growth of 11.2% demonstrates continued momentum.

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.

Bear Case : AWR

The primary concerns for AWR are PEG Ratio, Free Cash Flow, Altman Z-Score.

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.

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 1.17 — expect wider price swings.

AWR is growing revenue faster at 11.2% — sustainability is the question.

NRG generates stronger free cash flow (779M), providing more financial flexibility.

Bottom Line

AWR scores higher overall (66/100 vs 60/100), backed by strong 20.5% margins and 11.2% revenue growth. 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.

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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