NRG Energy Inc. (NRG)vsSempra Energy (SRE)
NRG
NRG Energy Inc.
$113.46
+1.62%
UTILITIES · Cap: $25.15B
SRE
Sempra Energy
$83.34
-0.79%
UTILITIES · Cap: $54.50B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 144% more annual revenue ($33.12B vs $13.55B). SRE leads profitability with a 16.8% profit margin vs 2.6%. NRG appears more attractively valued with a PEG of 0.46. SRE earns a higher WallStSmart Score of 68/100 (B-).
NRG
Buy60
out of 100
Grade: C+
SRE
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for NRG.
Margin of Safety
-36.8%
Fair Value
$60.93
Current Price
$83.34
$22.41 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Earnings expanding 71.3% YoY
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 28.3%
Areas to Watch
Premium valuation, high expectations priced in
Distress zone — elevated risk
2.6% margin — thin
Earnings declined 85.6%
ROE of 7.0% — below average capital efficiency
Elevated debt levels
Revenue declined 0.1%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : NRG
The strongest argument for NRG centers on PEG Ratio. Revenue growth of 11.0% demonstrates continued momentum. PEG of 0.46 suggests the stock is reasonably priced for its growth.
Bull Case : SRE
The strongest argument for SRE centers on EPS Growth, Market Cap, PEG Ratio. Profitability is solid with margins at 16.8% and operating margin at 28.3%. PEG of 0.70 suggests the stock is reasonably priced for its growth.
Bear Case : NRG
The primary concerns for NRG are P/E Ratio, Altman Z-Score, Profit Margin. Debt-to-equity of 4.83 is elevated, increasing financial risk. Thin 2.6% margins leave little buffer for downturns.
Bear Case : SRE
The primary concerns for SRE are Return on Equity, Debt/Equity, Revenue Growth.
Key Dynamics to Monitor
NRG profiles as a value stock while SRE is a declining play — different risk/reward profiles.
NRG carries more volatility with a beta of 1.17 — expect wider price swings.
NRG is growing revenue faster at 11.0% — sustainability is the question.
NRG generates stronger free cash flow (779M), providing more financial flexibility.
Bottom Line
SRE scores higher overall (68/100 vs 60/100), backed by strong 16.8% margins. 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.
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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