NRG Energy Inc. (NRG)vsEssential Utilities Inc (WTRG)
NRG
NRG Energy Inc.
$155.58
+4.41%
UTILITIES · Cap: $31.65B
WTRG
Essential Utilities Inc
$39.49
-0.35%
UTILITIES · Cap: $11.19B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 1141% more annual revenue ($30.71B vs $2.47B). WTRG leads profitability with a 24.9% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.37. WTRG earns a higher WallStSmart Score of 60/100 (C+).
NRG
Buy54
out of 100
Grade: C-
WTRG
Buy60
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
+47.6%
Fair Value
$71.49
Current Price
$39.49
$32.00 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 42 in profit
Strong operational efficiency at 32.4%
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
15.7% revenue growth
Areas to Watch
Premium valuation, high expectations priced in
Distress zone — elevated risk
2.8% margin — thin
Operating margin of 4.3%
Weak financial health signals
Expensive relative to growth rate
Earnings declined 30.0%
Negative free cash flow — burning cash
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 : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 24.9% and operating margin at 32.4%. Revenue growth of 15.7% demonstrates continued momentum.
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 : WTRG
The primary concerns for WTRG are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
NRG profiles as a value stock while WTRG is a growth play — different risk/reward profiles.
NRG carries more volatility with a beta of 1.34 — expect wider price swings.
WTRG is growing revenue faster at 15.7% — sustainability is the question.
NRG generates stronger free cash flow (-175M), providing more financial flexibility.
Bottom Line
WTRG scores higher overall (60/100 vs 54/100), backed by strong 24.9% margins and 15.7% revenue growth. 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.
Essential Utilities Inc
UTILITIES · UTILITIES - REGULATED WATER · USA
Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.
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