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FTS vs NRG

FTS
Fortis Inc.
NEUTRAL
Price
$56.33
Market Cap
$28.68B
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
FTS
22.62
NRG
38.8
Forward P/E
FTS
19.92
NRG
13.67
P/B Ratio
FTS
1.77
NRG
28.73
P/S Ratio
FTS
2.36
NRG
1.08
EV/EBITDA
FTS
11.83
NRG
15.5

Profitability

Gross Margin
FTS
45.6%
NRG
19.38%
Operating Margin
FTS
28.9%
NRG
4.26%
Profit Margin
FTS
14.78%
NRG
2.81%
ROE
FTS
7.58%
NRG
41.55%
ROA
FTS
3.01%
NRG
4.57%

Growth

Revenue Growth
FTS
4.4%
NRG
13.7%
Earnings Growth
FTS
5.0%
NRG
-91.3%

Financial Health

Debt/Equity
FTS
1.34
NRG
9.89
Current Ratio
FTS
0.51
NRG
1.64
Quick Ratio
FTS
0.25
NRG
1.09

Dividends

Dividend Yield
FTS
3.28%
NRG
1.22%
Payout Ratio
FTS
73.09%
NRG
43.89%

AI Verdict

FTS NEUTRAL

Fortis Inc. presents a stable but overvalued profile, characterized by a Piotroski F-Score of 4/9 and a significant premium over its Graham Number ($42.28) and Intrinsic Value ($36.11). While the company maintains superior profit margins and a healthier Debt/Equity ratio than its sector peers, it suffers from severe short-term liquidity constraints with a Current Ratio of 0.51. Growth is sluggish compared to the utility sector average, and the technical trend is strongly bearish. The stock currently functions as a low-growth defensive play trading at a valuation that exceeds its fundamental baseline.

Strengths
Profit margins (14.78%) are significantly higher than the sector average (6.78%)
Debt/Equity ratio (1.34) is lower than the sector average (1.63)
Positive ROE (7.58%) compared to a negative sector average (-0.86%)
Risks
Severe liquidity risk indicated by a Current Ratio of 0.51 and Quick Ratio of 0.25
Trading at a substantial premium to Graham Number ($42.28) and Intrinsic Value ($36.11)
Revenue growth (4.40%) is drastically lagging behind the sector average (19.38%)
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

FTS vs NRG: Head-to-Head Comparison

This page compares Fortis Inc. (FTS) 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.

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