WallStSmart

FirstEnergy Corporation (FE)vsNRG Energy Inc. (NRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 106% more annual revenue ($30.71B vs $14.90B). FE leads profitability with a 6.8% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.37. FE earns a higher WallStSmart Score of 63/100 (C+).

FE

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 6.5Value: 4.0Quality: 3.8
Piotroski: 4/9Altman Z: 0.63

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

FESignificantly Overvalued (-23.8%)

Margin of Safety

-23.8%

Fair Value

$38.72

Current Price

$48.94

$10.22 premium

UndervaluedFair: $38.72Overvalued
NRGUndervalued (+59.0%)

Margin of Safety

+59.0%

Fair Value

$391.91

Current Price

$149.01

$242.90 discount

UndervaluedFair: $391.91Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FE3 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Revenue GrowthGrowth
20.7%8/10

Revenue surging 20.7% year-over-year

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

Every $100 of equity generates 42 in profit

Areas to Watch

FE4 concerns · Avg: 3.8/10
PEG RatioValuation
1.514/10

Expensive relative to growth rate

P/E RatioValuation
26.6x4/10

Moderate valuation

EPS GrowthGrowth
4.5%4/10

4.5% earnings growth

Profit MarginProfitability
6.8%3/10

6.8% margin — thin

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 : FE

The strongest argument for FE centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 20.7% 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 : FE

The primary concerns for FE are PEG Ratio, P/E Ratio, EPS Growth.

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

FE 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.

FE is growing revenue faster at 20.7% — sustainability is the question.

FE generates stronger free cash flow (-30M), providing more financial flexibility.

Bottom Line

FE scores higher overall (63/100 vs 54/100) and 20.7% 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.

FirstEnergy Corporation

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

FirstEnergy Corp is an electric utility headquartered in Akron, Ohio. Its subsidiaries and affiliates are involved in the distribution, transmission, and generation of electricity, as well as energy management and other energy-related services.

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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