WallStSmart

NRG Energy Inc. (NRG)vsXcel Energy Inc (XEL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 109% more annual revenue ($30.71B vs $14.67B). XEL leads profitability with a 13.8% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.37. XEL earns a higher WallStSmart Score of 62/100 (C+).

NRG

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 6.0Value: 6.7Quality: 5.3
Piotroski: 5/9Altman Z: 1.70

XEL

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 5.0Quality: 4.0
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NRGUndervalued (+59.0%)

Margin of Safety

+59.0%

Fair Value

$391.91

Current Price

$155.58

$236.33 discount

UndervaluedFair: $391.91Overvalued

Intrinsic value data unavailable for XEL.

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

XEL2 strengths · Avg: 8.0/10
Price/BookValuation
2.2x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.8%8/10

Earnings expanding 20.8% YoY

Areas to Watch

NRG4 concerns · Avg: 3.5/10
P/E RatioValuation
37.2x4/10

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%

XEL4 concerns · Avg: 3.0/10
PEG RatioValuation
2.244/10

Expensive relative to growth rate

Debt/EquityHealth
1.443/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Free Cash FlowQuality
$-8.46B2/10

Negative free cash flow — burning cash

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 1.37 suggests the stock is reasonably priced for its growth.

Bull Case : XEL

The strongest argument for XEL centers on Price/Book, EPS Growth. Revenue growth of 14.1% 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 : XEL

The primary concerns for XEL are PEG Ratio, Debt/Equity, Piotroski F-Score.

Key Dynamics to Monitor

NRG carries more volatility with a beta of 1.34 — expect wider price swings.

XEL is growing revenue faster at 14.1% — sustainability is the question.

NRG generates stronger free cash flow (-175M), providing more financial flexibility.

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

Bottom Line

XEL scores higher overall (62/100 vs 54/100) and 14.1% 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.

Xcel Energy Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Xcel Energy Inc. is a utility holding company based in Minneapolis, Minnesota, serving more than 3.7 million electric customers and 2.1 million natural gas customers in Minnesota, Michigan, Wisconsin, North Dakota, South Dakota, Colorado, Texas, and New Mexico as of 2019. It consists of four operating subsidiaries: Northern States Power-Minnesota, Northern States Power-Wisconsin, Public Service Company of Colorado, and Southwestern Public Service Co.

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