Brookfield Business Partners LP (BBU)vsNRG Energy Inc. (NRG)
BBU
Brookfield Business Partners LP
$32.62
+6.60%
INDUSTRIALS · Cap: $2.71B
NRG
NRG Energy Inc.
$151.04
-0.06%
UTILITIES · Cap: $32.08B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 12% more annual revenue ($30.71B vs $27.46B). NRG leads profitability with a 2.8% profit margin vs -0.1%. NRG earns a higher WallStSmart Score of 54/100 (C-).
BBU
Buy52
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 BBU.
Margin of Safety
-490.6%
Fair Value
$27.20
Current Price
$151.04
$123.84 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 80.0% YoY
Reasonable price relative to book value
Every $100 of equity generates 42 in profit
Areas to Watch
ROE of 2.4% — below average capital efficiency
Weak financial health signals
Revenue declined 4.5%
Currently unprofitable
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 : BBU
The strongest argument for BBU centers on EPS Growth, Price/Book.
Bull Case : NRG
The strongest argument for NRG centers on Return on Equity. Revenue growth of 13.7% demonstrates continued momentum. PEG of 1.29 suggests the stock is reasonably priced for its growth.
Bear Case : BBU
The primary concerns for BBU are Return on Equity, Piotroski F-Score, Revenue Growth. Debt-to-equity of 19.07 is elevated, increasing financial risk.
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
BBU profiles as a turnaround stock while NRG is a value play — different risk/reward profiles.
BBU carries more volatility with a beta of 1.32 — expect wider price swings.
NRG is growing revenue faster at 13.7% — sustainability is the question.
BBU generates stronger free cash flow (763M), providing more financial flexibility.
Bottom Line
NRG scores higher overall (54/100 vs 52/100) and 13.7% revenue growth. 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.
Brookfield Business Partners LP
INDUSTRIALS · CONGLOMERATES · USA
Brookfield Business Partners LP (BBU) is a leading global alternative asset manager that focuses on acquiring, operating, and enhancing a diversified portfolio of high-quality, cash-generating businesses. Capitalizing on the robust resources and expertise of its parent company, Brookfield Asset Management, BBU strategically invests in sectors such as industrials, utilities, and consumer products, employing a disciplined approach to operational improvements. With an emphasis on delivering sustainable cash distributions and capital appreciation, BBU is well-equipped to capitalize on growth opportunities, positioning itself to generate superior returns for its investors over the long term.
Visit Website →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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