NRG Energy Inc. (NRG)vsPinnacle West Capital Corp (PNW)
NRG
NRG Energy Inc.
$138.11
-2.64%
UTILITIES · Cap: $30.18B
PNW
Pinnacle West Capital Corp
$99.25
-0.28%
UTILITIES · Cap: $12.06B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 463% more annual revenue ($30.71B vs $5.46B). PNW leads profitability with a 12.0% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.34. NRG earns a higher WallStSmart Score of 56/100 (C).
NRG
Buy56
out of 100
Grade: C
PNW
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.9%
Fair Value
$391.20
Current Price
$138.11
$253.09 discount
Margin of Safety
-2.9%
Fair Value
$93.31
Current Price
$99.25
$5.94 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 42 in profit
Reasonable price relative to book value
Areas to Watch
Distress zone — elevated risk
2.8% margin — thin
Operating margin of 4.3%
Premium valuation, high expectations priced in
0.6% earnings growth
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : NRG
The strongest argument for NRG centers on Return on Equity. Revenue growth of 13.7% demonstrates continued momentum. PEG of 1.34 suggests the stock is reasonably priced for its growth.
Bull Case : PNW
The strongest argument for PNW centers on Price/Book. Revenue growth of 11.4% demonstrates continued momentum.
Bear Case : NRG
The primary concerns for NRG are Altman Z-Score, Profit Margin, Operating Margin. A P/E of 157.6x leaves little room for execution misses. Thin 2.8% margins leave little buffer for downturns.
Bear Case : PNW
The primary concerns for PNW are EPS Growth, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
NRG carries more volatility with a beta of 1.31 — expect wider price swings.
NRG is growing revenue faster at 13.7% — sustainability is the question.
PNW generates stronger free cash flow (-393M), providing more financial flexibility.
Monitor UTILITIES - INDEPENDENT POWER PRODUCERS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NRG scores higher overall (56/100 vs 55/100) and 13.7% 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.
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.
Pinnacle West Capital Corp
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Pinnacle West Capital is a utility holding company that owns Arizona Public Service and Bright Canyon Energy.
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