Edison International (EIX)vsNRG Energy Inc. (NRG)
EIX
Edison International
$67.94
0.00%
UTILITIES · Cap: $26.15B
NRG
NRG Energy Inc.
$149.01
-3.75%
UTILITIES · Cap: $31.65B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 59% more annual revenue ($30.71B vs $19.32B). EIX leads profitability with a 23.1% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.37. EIX earns a higher WallStSmart Score of 85/100 (A).
EIX
Exceptional Buy85
out of 100
Grade: A
NRG
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+15.6%
Fair Value
$79.41
Current Price
$67.94
$11.47 discount
Margin of Safety
+59.0%
Fair Value
$391.91
Current Price
$149.01
$242.90 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Strong operational efficiency at 35.9%
Revenue surging 30.8% year-over-year
Earnings expanding 446.3% YoY
Every $100 of equity generates 24 in profit
Keeps 23 of every $100 in revenue as profit
Every $100 of equity generates 42 in profit
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
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 : EIX
The strongest argument for EIX centers on P/E Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 23.1% and operating margin at 35.9%. Revenue growth of 30.8% 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 : EIX
The primary concerns for EIX are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.42 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
EIX profiles as a growth 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.
EIX is growing revenue faster at 30.8% — sustainability is the question.
NRG generates stronger free cash flow (-175M), providing more financial flexibility.
Bottom Line
EIX scores higher overall (85/100 vs 54/100), backed by strong 23.1% margins and 30.8% revenue growth. NRG offers better value entry with a 59.0% margin of safety. Both earn "Exceptional 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.
Edison International
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Edison International is a public utility holding company based in Rosemead, California. Its subsidiaries include Southern California Edison, and unregulated non-utility business assets Edison Energy.
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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