WallStSmart

NRG Energy Inc. (NRG)vsTXNM Energy, Inc. (TXNM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 1383% more annual revenue ($33.12B vs $2.23B). TXNM leads profitability with a 8.8% profit margin vs 2.6%. NRG appears more attractively valued with a PEG of 0.40. TXNM earns a higher WallStSmart Score of 63/100 (C+).

NRG

Buy

60

out of 100

Grade: C+

Growth: 3.3Profit: 6.0Value: 7.0Quality: 4.0
Piotroski: 4/9Altman Z: 1.61

TXNM

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 5.5Value: 3.7Quality: 6.5
Piotroski: 3/9Altman Z: 3.29

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NRG1 strengths · Avg: 10.0/10
PEG RatioValuation
0.4010/10

Growing faster than its price suggests

TXNM5 strengths · Avg: 9.0/10
EPS GrowthGrowth
190.9%10/10

Earnings expanding 190.9% YoY

Altman Z-ScoreHealth
3.2910/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.5%8/10

Strong operational efficiency at 22.5%

Areas to Watch

NRG4 concerns · Avg: 3.3/10
P/E RatioValuation
26.9x4/10

Moderate valuation

Altman Z-ScoreHealth
1.614/10

Distress zone — elevated risk

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

EPS GrowthGrowth
-85.6%2/10

Earnings declined 85.6%

TXNM4 concerns · Avg: 3.0/10
P/E RatioValuation
32.0x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.552/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : NRG

The strongest argument for NRG centers on PEG Ratio. Revenue growth of 11.0% demonstrates continued momentum. PEG of 0.40 suggests the stock is reasonably priced for its growth.

Bull Case : TXNM

The strongest argument for TXNM centers on EPS Growth, Altman Z-Score, Debt/Equity.

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 : TXNM

The primary concerns for TXNM are P/E Ratio, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

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.

Monitor UTILITIES - INDEPENDENT POWER PRODUCERS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TXNM scores higher overall (63/100 vs 60/100). 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.

TXNM Energy, Inc.

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

TXNM Energy, Inc., provides electricity and electric services in the United States. The company is headquartered in Albuquerque, New Mexico.

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