WallStSmart

Keurig Dr Pepper Inc (KDP)vsNRG Energy Inc. (NRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 85% more annual revenue ($30.71B vs $16.60B). KDP leads profitability with a 12.5% profit margin vs 2.8%. KDP appears more attractively valued with a PEG of 0.89. KDP earns a higher WallStSmart Score of 69/100 (B-).

KDP

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 6.5Value: 8.7Quality: 4.3
Piotroski: 5/9Altman Z: 1.06

NRG

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 6.0Value: 7.3Quality: 5.3
Piotroski: 5/9Altman Z: 1.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KDPUndervalued (+2.7%)

Margin of Safety

+2.7%

Fair Value

$30.72

Current Price

$26.37

$4.35 discount

UndervaluedFair: $30.72Overvalued
NRGSignificantly Overvalued (-490.6%)

Margin of Safety

-490.6%

Fair Value

$27.20

Current Price

$151.04

$123.84 premium

UndervaluedFair: $27.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KDP4 strengths · Avg: 8.5/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

PEG RatioValuation
0.898/10

Growing faster than its price suggests

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
22.6%8/10

Strong operational efficiency at 22.6%

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

Every $100 of equity generates 42 in profit

Areas to Watch

KDP1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
1.062/10

Distress zone — elevated risk

NRG4 concerns · Avg: 3.5/10
P/E RatioValuation
37.8x4/10

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 : KDP

The strongest argument for KDP centers on Price/Book, PEG Ratio, P/E Ratio. Revenue growth of 10.5% demonstrates continued momentum. PEG of 0.89 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 1.29 suggests the stock is reasonably priced for its growth.

Bear Case : KDP

The primary concerns for KDP are Altman Z-Score.

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 1.26 — expect wider price swings.

NRG is growing revenue faster at 13.7% — sustainability is the question.

KDP generates stronger free cash flow (566M), providing more financial flexibility.

Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

KDP scores higher overall (69/100 vs 54/100) and 10.5% 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.

Keurig Dr Pepper Inc

CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA

Keurig Dr Pepper Inc. is a beverage company in the United States and internationally. The company is headquartered in Burlington, Massachusetts.

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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