NRG Energy Inc. (NRG)vsSempra Energy (SRE)
NRG
NRG Energy Inc.
$133.36
+3.98%
UTILITIES · Cap: $26.47B
SRE
Sempra Energy
$90.34
-0.39%
UTILITIES · Cap: $58.54B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 139% more annual revenue ($32.38B vs $13.55B). SRE leads profitability with a 14.4% profit margin vs 0.7%. NRG appears more attractively valued with a PEG of 0.43. SRE earns a higher WallStSmart Score of 64/100 (C+).
NRG
Buy51
out of 100
Grade: C-
SRE
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for NRG.
Margin of Safety
-51.4%
Fair Value
$60.40
Current Price
$90.34
$29.94 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
19.5% revenue growth
Strong operational efficiency at 30.6%
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Distress zone — elevated risk
ROE of 4.9% — below average capital efficiency
0.7% margin — thin
Operating margin of 3.6%
Premium valuation, high expectations priced in
ROE of 6.4% — below average capital efficiency
Elevated debt levels
Revenue declined 3.9%
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 0.43 suggests the stock is reasonably priced for its growth.
Bull Case : SRE
The strongest argument for SRE centers on Operating Margin, Market Cap, PEG Ratio. PEG of 0.78 suggests the stock is reasonably priced for its growth.
Bear Case : NRG
The primary concerns for NRG are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 136.4x leaves little room for execution misses. Debt-to-equity of 4.79 is elevated, increasing financial risk.
Bear Case : SRE
The primary concerns for SRE are P/E Ratio, Return on Equity, Debt/Equity.
Key Dynamics to Monitor
NRG profiles as a growth stock while SRE is a declining 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
SRE scores higher overall (64/100 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.
Sempra Energy
UTILITIES · UTILITIES - DIVERSIFIED · USA
Sempra Energy is a North American energy infrastructure company based in San Diego, California. Sempra Energy's focus is on electric and natural gas infrastructure. Its operating companies include: Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E) in Southern California; Oncor Electric Delivery Company (Oncor) in Texas; Sempra LNG; and IEnova, based in Mexico.
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