No connection

Search Results

CNP vs NRG

CNP
CenterPoint Energy, Inc.
NEUTRAL
Price
$42.47
Market Cap
$27.78B
Sector
Utilities
AI Confidence
85%
NRG
NRG Energy, Inc.
BEARISH
Price
$155.58
Market Cap
$33.04B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
CNP
26.06
NRG
38.8
Forward P/E
CNP
20.4
NRG
13.67
P/B Ratio
CNP
2.49
NRG
28.73
P/S Ratio
CNP
2.95
NRG
1.08
EV/EBITDA
CNP
14.0
NRG
15.5

Profitability

Gross Margin
CNP
45.92%
NRG
19.38%
Operating Margin
CNP
22.12%
NRG
4.26%
Profit Margin
CNP
11.38%
NRG
2.81%
ROE
CNP
9.56%
NRG
41.55%
ROA
CNP
2.84%
NRG
4.57%

Growth

Revenue Growth
CNP
1.9%
NRG
13.7%
Earnings Growth
CNP
6.7%
NRG
-91.3%

Financial Health

Debt/Equity
CNP
2.16
NRG
9.89
Current Ratio
CNP
1.17
NRG
1.64
Quick Ratio
CNP
0.47
NRG
1.09

Dividends

Dividend Yield
CNP
2.17%
NRG
1.22%
Payout Ratio
CNP
54.6%
NRG
43.89%

AI Verdict

CNP NEUTRAL

CNP presents a conflict between strong historical performance and current overvaluation. The deterministic baseline is weak, with a Piotroski F-Score of 4/9 (Stable) and a current price of $42.47 that significantly exceeds both the Graham Number ($25.03) and Intrinsic Value ($27.79). While the company maintains healthy operating margins and a sustainable dividend payout, the high Debt/Equity ratio (2.16) and bearish technical trend (10/100) suggest limited immediate upside. The stock is currently trading at a premium that is not fully supported by its low revenue growth (1.90%).

Strengths
Consistent track record of earnings beats over 25 quarters
Strong operating margin of 22.12% compared to sector peers
Sustainable dividend payout ratio of 54.60%
Risks
Significant valuation gap between current price and Graham/Intrinsic values
High leverage with a Debt/Equity ratio of 2.16
Stagnant revenue growth (1.90% YoY)
NRG BEARISH

NRG exhibits a severe disconnect between its current market price ($155.58) and its deterministic value markers, with a Graham Number of $22.11 and an Intrinsic Value of $28.07. While the Piotroski F-Score of 4/9 indicates stable health, this is overshadowed by an extreme Debt/Equity ratio of 9.89 and a Price/Book ratio of 28.73, which are highly atypical for the utilities sector. Despite bullish analyst targets and revenue growth, the massive insider sell-off of over $5 billion and a -91.3% collapse in YoY earnings suggest significant internal risk. The stock is currently trading at a massive premium that is not supported by fundamental value metrics.

Strengths
Strong revenue growth of 13.70% YoY
High Return on Equity (ROE) of 41.55%
Attractive Forward P/E of 13.67 suggesting expected earnings recovery
Risks
Extreme leverage with a Debt/Equity ratio of 9.89
Severe earnings contraction (-91.30% YoY)
Massive valuation gap relative to Graham Number and Intrinsic Value

Compare Another Pair

CNP vs NRG: Head-to-Head Comparison

This page compares CenterPoint Energy, Inc. (CNP) and NRG Energy, Inc. (NRG) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

Home
Terminal
AI Chat
Markets
Profile