WallStSmart

Emera Incorporated (EMA)vsNRG Energy Inc. (NRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 250% more annual revenue ($30.71B vs $8.78B). EMA leads profitability with a 12.4% profit margin vs 2.8%. EMA appears more attractively valued with a PEG of 1.19. EMA earns a higher WallStSmart Score of 60/100 (C).

EMA

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 5.5Value: 7.3Quality: 5.0

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

EMAUndervalued (+36.9%)

Margin of Safety

+36.9%

Fair Value

$77.78

Current Price

$52.53

$25.25 discount

UndervaluedFair: $77.78Overvalued
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

EMA1 strengths · Avg: 8.0/10
Price/BookValuation
1.8x8/10

Reasonable price relative to book value

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

Every $100 of equity generates 42 in profit

Areas to Watch

EMA2 concerns · Avg: 2.0/10
EPS GrowthGrowth
-56.9%2/10

Earnings declined 56.9%

Free Cash FlowQuality
$-753.39M2/10

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 : EMA

The strongest argument for EMA centers on Price/Book. Revenue growth of 13.8% demonstrates continued momentum. PEG of 1.19 suggests the stock is reasonably priced for its growth.

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 : EMA

The primary concerns for EMA are EPS Growth, Free Cash Flow.

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

NRG carries more volatility with a beta of 1.34 — expect wider price swings.

EMA is growing revenue faster at 13.8% — sustainability is the question.

NRG generates stronger free cash flow (-175M), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

EMA scores higher overall (60/100 vs 54/100) and 13.8% 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.

Emera Incorporated

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Emera Incorporated, an energy and services company, invests in generation, transmission, and distribution of electricity in the United States, Canada, Barbados, and the Bahamas. The company is headquartered in Halifax, Canada.

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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