WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 111% more annual revenue ($32.38B vs $15.34B). FE leads profitability with a 6.9% profit margin vs 0.7%. NRG appears more attractively valued with a PEG of 0.43. FE earns a higher WallStSmart Score of 65/100 (C+).

FE

Buy

65

out of 100

Grade: C+

Growth: 6.0Profit: 6.0Value: 4.0Quality: 2.5
Piotroski: 3/9Altman Z: 0.59

NRG

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 4.0Value: 5.7Quality: 4.0
Piotroski: 4/9Altman Z: 1.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FESignificantly Overvalued (-63.5%)

Margin of Safety

-63.5%

Fair Value

$29.31

Current Price

$46.42

$17.11 premium

UndervaluedFair: $29.31Overvalued

Intrinsic value data unavailable for NRG.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FE2 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.5%8/10

Strong operational efficiency at 20.5%

NRG2 strengths · Avg: 9.0/10
PEG RatioValuation
0.4310/10

Growing faster than its price suggests

Revenue GrowthGrowth
19.5%8/10

19.5% revenue growth

Areas to Watch

FE4 concerns · Avg: 3.5/10
PEG RatioValuation
1.674/10

Expensive relative to growth rate

P/E RatioValuation
25.6x4/10

Moderate valuation

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

NRG4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.614/10

Distress zone — elevated risk

Return on EquityProfitability
4.9%3/10

ROE of 4.9% — below average capital efficiency

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : FE

The strongest argument for FE centers on Price/Book, Operating Margin. Revenue growth of 11.6% demonstrates continued momentum.

Bull Case : NRG

The strongest argument for NRG centers on PEG Ratio, Revenue Growth. Revenue growth of 19.5% demonstrates continued momentum. PEG of 0.43 suggests the stock is reasonably priced for its growth.

Bear Case : FE

The primary concerns for FE are PEG Ratio, P/E Ratio, Profit Margin. Debt-to-equity of 2.22 is elevated, increasing financial risk.

Bear Case : NRG

The primary concerns for NRG are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 136.4x leaves little room for execution misses. Debt-to-equity of 4.79 is elevated, increasing financial risk.

Key Dynamics to Monitor

FE profiles as a value stock while NRG is a growth play — different risk/reward profiles.

NRG carries more volatility with a beta of 1.22 — expect wider price swings.

NRG is growing revenue faster at 19.5% — sustainability is the question.

NRG generates stronger free cash flow (-486M), providing more financial flexibility.

Bottom Line

FE scores higher overall (65/100 vs 51/100) and 11.6% 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.

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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