CMS Energy Corporation (CMS)vsNRG Energy Inc. (NRG)
CMS
CMS Energy Corporation
$72.61
-1.83%
UTILITIES · Cap: $22.85B
NRG
NRG Energy Inc.
$138.11
-2.64%
UTILITIES · Cap: $30.18B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 248% more annual revenue ($30.71B vs $8.82B). CMS leads profitability with a 12.6% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.34. CMS earns a higher WallStSmart Score of 60/100 (C+).
CMS
Buy60
out of 100
Grade: C+
NRG
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-53.5%
Fair Value
$48.56
Current Price
$72.61
$24.05 premium
Margin of Safety
+58.9%
Fair Value
$391.20
Current Price
$138.11
$253.09 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 42 in profit
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Distress zone — elevated risk
2.8% margin — thin
Operating margin of 4.3%
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : CMS
The strongest argument for CMS centers on Price/Book. Revenue growth of 11.6% 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 1.34 suggests the stock is reasonably priced for its growth.
Bear Case : CMS
The primary concerns for CMS are Piotroski F-Score, PEG Ratio, Free Cash Flow.
Bear Case : NRG
The primary concerns for NRG are Altman Z-Score, Profit Margin, Operating Margin. A P/E of 157.6x leaves little room for execution misses. Thin 2.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
NRG carries more volatility with a beta of 1.31 — expect wider price swings.
NRG is growing revenue faster at 13.7% — sustainability is the question.
CMS generates stronger free cash flow (-334M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CMS scores higher overall (60/100 vs 56/100) and 11.6% revenue growth. NRG offers better value entry with a 58.9% 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.
CMS Energy Corporation
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
CMS Energy (NYSE: CMS), based in Jackson, Michigan, is an energy company that is focused principally on utility operations in Michigan.
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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