NRG Energy Inc. (NRG)vsTransAlta Corp (TAC)
NRG
NRG Energy Inc.
$133.36
+2.22%
UTILITIES · Cap: $26.47B
TAC
TransAlta Corp
$12.68
-2.16%
UTILITIES · Cap: $4.23B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 1364% more annual revenue ($32.38B vs $2.21B). NRG leads profitability with a 0.7% profit margin vs -7.7%. NRG appears more attractively valued with a PEG of 0.43. NRG earns a higher WallStSmart Score of 51/100 (C-).
NRG
Buy51
out of 100
Grade: C-
TAC
Avoid33
out of 100
Grade: F
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
19.5% revenue growth
No standout strengths identified
Areas to Watch
Distress zone — elevated risk
ROE of 4.9% — below average capital efficiency
0.7% margin — thin
Operating margin of 3.6%
Trading at 11.3x book value
Weak financial health signals
Expensive relative to growth rate
ROE of -12.1% — below average capital efficiency
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 : TAC
TAC has a balanced fundamental profile.
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 : TAC
The primary concerns for TAC are Price/Book, Piotroski F-Score, PEG Ratio. Debt-to-equity of 3.17 is elevated, increasing financial risk.
Key Dynamics to Monitor
NRG profiles as a growth stock while TAC is a turnaround 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.
TAC generates stronger free cash flow (93M), providing more financial flexibility.
Bottom Line
NRG scores higher overall (51/100 vs 33/100) and 19.5% 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.
Compare with Other UTILITIES - INDEPENDENT POWER PRODUCERS Stocks
Want to dig deeper into these stocks?