NRG Energy Inc. (NRG)vsSouthern Company (SO)
NRG
NRG Energy Inc.
$146.00
-2.05%
UTILITIES · Cap: $31.04B
SO
Southern Company
$95.69
-0.75%
UTILITIES · Cap: $109.53B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 7% more annual revenue ($32.38B vs $30.18B). SO leads profitability with a 14.5% profit margin vs 0.7%. NRG appears more attractively valued with a PEG of 0.49. SO earns a higher WallStSmart Score of 56/100 (C).
NRG
Buy51
out of 100
Grade: C-
SO
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for NRG.
Margin of Safety
-54.7%
Fair Value
$62.79
Current Price
$95.69
$32.90 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
19.5% revenue growth
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 25.8%
Areas to Watch
Distress zone — elevated risk
ROE of 4.9% — below average capital efficiency
0.7% margin — thin
Operating margin of 3.6%
Weak financial health signals
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : NRG
The strongest argument for NRG centers on PEG Ratio, Revenue Growth. Revenue growth of 19.5% demonstrates continued momentum. PEG of 0.49 suggests the stock is reasonably priced for its growth.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
Bear Case : NRG
The primary concerns for NRG are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 161.7x leaves little room for execution misses. Debt-to-equity of 4.79 is elevated, increasing financial risk.
Bear Case : SO
The primary concerns for SO are Piotroski F-Score, PEG Ratio, EPS Growth. Debt-to-equity of 2.05 is elevated, increasing financial risk.
Key Dynamics to Monitor
NRG profiles as a growth stock while SO is a value 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
SO scores higher overall (56/100 vs 51/100). 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.
Southern Company
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.
Compare with Other UTILITIES - INDEPENDENT POWER PRODUCERS Stocks
Want to dig deeper into these stocks?