Howmet Aerospace Inc (HWM)vsNRG Energy Inc. (NRG)
HWM
Howmet Aerospace Inc
$241.58
+0.86%
INDUSTRIALS · Cap: $93.06B
NRG
NRG Energy Inc.
$151.04
-0.06%
UTILITIES · Cap: $32.08B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 272% more annual revenue ($30.71B vs $8.25B). HWM leads profitability with a 18.3% profit margin vs 2.8%. HWM appears more attractively valued with a PEG of 0.80. HWM earns a higher WallStSmart Score of 69/100 (B-).
HWM
Strong Buy69
out of 100
Grade: B-
NRG
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-58.8%
Fair Value
$145.34
Current Price
$241.58
$96.24 premium
Margin of Safety
-490.6%
Fair Value
$27.20
Current Price
$151.04
$123.84 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 30 in profit
Large-cap with strong market position
Growing faster than its price suggests
Strong operational efficiency at 26.3%
Earnings expanding 20.3% YoY
Every $100 of equity generates 42 in profit
Areas to Watch
Trading at 18.1x book value
Premium valuation, high expectations priced in
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 : HWM
The strongest argument for HWM centers on Return on Equity, Market Cap, PEG Ratio. Profitability is solid with margins at 18.3% and operating margin at 26.3%. Revenue growth of 14.6% 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 1.29 suggests the stock is reasonably priced for its growth.
Bear Case : HWM
The primary concerns for HWM are Price/Book, P/E Ratio. A P/E of 62.5x leaves little room for execution misses.
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
HWM profiles as a mature stock while NRG is a value play — different risk/reward profiles.
NRG carries more volatility with a beta of 1.26 — expect wider price swings.
HWM is growing revenue faster at 14.6% — sustainability is the question.
HWM generates stronger free cash flow (530M), providing more financial flexibility.
Bottom Line
HWM scores higher overall (69/100 vs 54/100), backed by strong 18.3% margins and 14.6% revenue growth. Both earn "Strong 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.
Howmet Aerospace Inc
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Howmet Aerospace Inc. is an American aerospace company based in Pittsburgh, Pennsylvania. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks.
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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