WallStSmart

NRG Energy Inc. (NRG)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 1177% more annual revenue ($30.71B vs $2.40B). NRG leads profitability with a 2.8% profit margin vs -5.7%. NRG appears more attractively valued with a PEG of 1.35. NRG earns a higher WallStSmart Score of 54/100 (C-).

NRG

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 6.0Value: 7.3Quality: 5.3
Piotroski: 5/9Altman Z: 1.70

TAC

Avoid

31

out of 100

Grade: F

Growth: 2.0Profit: 5.0Value: 4.0Quality: 3.3
Piotroski: 2/9Altman Z: -0.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NRGSignificantly Overvalued (-480.3%)

Margin of Safety

-480.3%

Fair Value

$27.68

Current Price

$145.80

$118.12 premium

UndervaluedFair: $27.68Overvalued

Intrinsic value data unavailable for TAC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NRG1 strengths · Avg: 10.0/10
Return on EquityProfitability
41.5%10/10

Every $100 of equity generates 42 in profit

TAC0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

NRG4 concerns · Avg: 3.5/10
P/E RatioValuation
38.0x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.704/10

Distress zone — elevated risk

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
4.3%3/10

Operating margin of 4.3%

TAC4 concerns · Avg: 2.8/10
Price/BookValuation
10.4x4/10

Trading at 10.4x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
6.982/10

Expensive relative to growth rate

Return on EquityProfitability
-9.6%2/10

ROE of -9.6% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : NRG

The strongest argument for NRG centers on Return on Equity. Revenue growth of 13.7% demonstrates continued momentum. PEG of 1.35 suggests the stock is reasonably priced for its growth.

Bull Case : TAC

TAC has a balanced fundamental profile.

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 : TAC

The primary concerns for TAC are Price/Book, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

NRG profiles as a value stock while TAC is a turnaround play — different risk/reward profiles.

NRG carries more volatility with a beta of 1.26 — expect wider price swings.

NRG is growing revenue faster at 13.7% — sustainability is the question.

TAC generates stronger free cash flow (147M), providing more financial flexibility.

Bottom Line

NRG scores higher overall (54/100 vs 31/100) and 13.7% revenue growth. Both earn "Buy" and "Avoid" 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.

TransAlta Corp

UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA

TransAlta Corporation owns, operates and develops a diverse fleet of electric power generation assets in Canada, the United States and Australia. The company is headquartered in Calgary, Canada.

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