NRG Energy Inc. (NRG)vsSouthwest Gas Holdings Inc (SWX)
NRG
NRG Energy Inc.
$155.58
+4.41%
UTILITIES · Cap: $31.65B
SWX
Southwest Gas Holdings Inc
$91.90
+0.21%
UTILITIES · Cap: $6.65B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 1483% more annual revenue ($30.71B vs $1.94B). SWX leads profitability with a 22.7% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.37. SWX earns a higher WallStSmart Score of 57/100 (C).
NRG
Buy54
out of 100
Grade: C-
SWX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+59.0%
Fair Value
$391.91
Current Price
$155.58
$236.33 discount
Margin of Safety
-18.3%
Fair Value
$72.67
Current Price
$91.90
$19.23 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 42 in profit
Strong operational efficiency at 33.9%
Keeps 23 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Distress zone — elevated risk
2.8% margin — thin
Operating margin of 4.3%
Expensive relative to growth rate
Moderate valuation
ROE of 6.1% — below average capital efficiency
Revenue declined 13.1%
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 1.37 suggests the stock is reasonably priced for its growth.
Bull Case : SWX
The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 22.7% and operating margin at 33.9%.
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.
Bear Case : SWX
The primary concerns for SWX are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
NRG profiles as a value stock while SWX is a declining play — different risk/reward profiles.
NRG carries more volatility with a beta of 1.34 — expect wider price swings.
NRG is growing revenue faster at 13.7% — sustainability is the question.
NRG generates stronger free cash flow (-175M), providing more financial flexibility.
Bottom Line
SWX scores higher overall (57/100 vs 54/100), backed by strong 22.7% margins. NRG offers better value entry with a 59.0% margin of safety. 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.
Southwest Gas Holdings Inc
UTILITIES · UTILITIES - REGULATED GAS · USA
Southwest Gas Holdings, Inc. purchases, distributes and transports natural gas in Arizona, Nevada and California. The company is headquartered in Las Vegas, Nevada.
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