WallStSmart

H2O America (HTO)vsNRG Energy Inc. (NRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 3898% more annual revenue ($33.12B vs $828.50M). HTO leads profitability with a 12.9% profit margin vs 2.6%. NRG appears more attractively valued with a PEG of 0.46. NRG earns a higher WallStSmart Score of 60/100 (C+).

HTO

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 5.5Value: 5.3Quality: 3.5
Piotroski: 1/9Altman Z: 0.68

NRG

Buy

60

out of 100

Grade: C+

Growth: 3.3Profit: 6.0Value: 6.3Quality: 4.0
Piotroski: 4/9Altman Z: 1.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HTOUndervalued (+29.8%)

Margin of Safety

+29.8%

Fair Value

$74.04

Current Price

$62.66

$11.38 discount

UndervaluedFair: $74.04Overvalued

Intrinsic value data unavailable for NRG.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HTO2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.3%8/10

Strong operational efficiency at 21.3%

NRG1 strengths · Avg: 10.0/10
PEG RatioValuation
0.4610/10

Growing faster than its price suggests

Areas to Watch

HTO4 concerns · Avg: 2.8/10
Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Debt/EquityHealth
1.033/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
2.682/10

Expensive relative to growth rate

NRG4 concerns · Avg: 3.3/10
P/E RatioValuation
31.2x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.614/10

Distress zone — elevated risk

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

EPS GrowthGrowth
-85.6%2/10

Earnings declined 85.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : HTO

The strongest argument for HTO centers on Price/Book, Operating Margin.

Bull Case : NRG

The strongest argument for NRG centers on PEG Ratio. Revenue growth of 11.0% demonstrates continued momentum. PEG of 0.46 suggests the stock is reasonably priced for its growth.

Bear Case : HTO

The primary concerns for HTO are Return on Equity, Debt/Equity, Piotroski F-Score.

Bear Case : NRG

The primary concerns for NRG are P/E Ratio, Altman Z-Score, Profit Margin. Debt-to-equity of 4.83 is elevated, increasing financial risk. Thin 2.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

NRG carries more volatility with a beta of 1.17 — expect wider price swings.

NRG is growing revenue faster at 11.0% — sustainability is the question.

NRG generates stronger free cash flow (779M), providing more financial flexibility.

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

Bottom Line

NRG scores higher overall (60/100 vs 55/100) and 11.0% revenue growth. HTO offers better value entry with a 29.8% 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.

H2O America

UTILITIES · UTILITIES - REGULATED WATER · USA

H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.

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.

Want to dig deeper into these stocks?