AWK vs. NRG: A Head-to-Head Stock Comparison

Updated on August 22, 2025

Here’s a clear look at AWK and NRG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Symbol	AWK	NRG
Company Name	American Water Works Company, Inc.	NRG Energy, Inc.
Country	United States	United States
GICS Sector	Utilities	Utilities
GICS Industry	Water Utilities	Electric Utilities
Market Capitalization	28.41 billion USD	28.66 billion USD
Exchange	NYSE	NYSE
Listing Date	April 23, 2008	December 2, 2003
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of AWK and NRG by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

AWK vs. NRG: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	AWK	NRG
5-Day Price Return	1.03%	-3.64%
13-Week Price Return	1.86%	-8.09%
26-Week Price Return	16.15%	39.47%
52-Week Price Return	3.00%	79.97%
Month-to-Date Return	3.54%	-11.37%
Year-to-Date Return	16.64%	64.25%
10-Day Avg. Volume	1.42M	2.69M
3-Month Avg. Volume	1.33M	3.14M
3-Month Volatility	19.72%	40.50%
Beta	0.72	1.16

Profitability

Return on Equity (TTM)

AWK

10.34%

Water Utilities Industry

Max: 14.76%
Q3: 13.44%
Median: 10.08%
Q1: 6.84%
Min: 5.11%

AWK’s Return on Equity of 10.34% is on par with the norm for the Water Utilities industry, indicating its profitability relative to shareholder equity is typical for the sector.

NRG

20.75%

Electric Utilities Industry

Max: 23.82%
Q3: 14.31%
Median: 10.58%
Q1: 7.57%
Min: 1.03%

In the upper quartile for the Electric Utilities industry, NRG’s Return on Equity of 20.75% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AWK vs. NRG: A comparison of their Return on Equity (TTM) against their respective Water Utilities and Electric Utilities industry benchmarks.

Net Profit Margin (TTM)

AWK

21.91%

Water Utilities Industry

Max: 33.53%
Q3: 23.04%
Median: 13.50%
Q1: 8.95%
Min: -3.68%

AWK’s Net Profit Margin of 21.91% is aligned with the median group of its peers in the Water Utilities industry. This indicates its ability to convert revenue into profit is typical for the sector.

NRG

1.78%

Electric Utilities Industry

Max: 29.46%
Q3: 17.23%
Median: 11.43%
Q1: 7.33%
Min: -2.53%

Falling into the lower quartile for the Electric Utilities industry, NRG’s Net Profit Margin of 1.78% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

AWK vs. NRG: A comparison of their Net Profit Margin (TTM) against their respective Water Utilities and Electric Utilities industry benchmarks.

Operating Profit Margin (TTM)

AWK

36.48%

Water Utilities Industry

Max: 54.67%
Q3: 39.13%
Median: 31.40%
Q1: 24.32%
Min: 7.04%

AWK’s Operating Profit Margin of 36.48% is around the midpoint for the Water Utilities industry, indicating that its efficiency in managing core business operations is typical for the sector.

NRG

3.87%

Electric Utilities Industry

Max: 46.44%
Q3: 26.51%
Median: 19.26%
Q1: 11.77%
Min: 2.81%

NRG’s Operating Profit Margin of 3.87% is in the lower quartile for the Electric Utilities industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

AWK vs. NRG: A comparison of their Operating Profit Margin (TTM) against their respective Water Utilities and Electric Utilities industry benchmarks.

Profitability at a Glance

Symbol	AWK	NRG
Return on Equity (TTM)	10.34%	20.75%
Return on Assets (TTM)	3.29%	2.16%
Net Profit Margin (TTM)	21.91%	1.78%
Operating Profit Margin (TTM)	36.48%	3.87%
Gross Profit Margin (TTM)	--	17.25%

Financial Strength

Current Ratio (MRQ)

AWK

0.35

Water Utilities Industry

Max: 1.94
Q3: 1.40
Median: 1.09
Q1: 0.77
Min: 0.38

AWK’s Current Ratio of 0.35 is notably low, falling beneath the typical range for the Water Utilities industry. This suggests a heightened liquidity risk and could indicate potential challenges in meeting its short-term obligations.

NRG

0.93

Electric Utilities Industry

Max: 1.81
Q3: 1.22
Median: 0.99
Q1: 0.78
Min: 0.34

NRG’s Current Ratio of 0.93 aligns with the median group of the Electric Utilities industry, indicating that its short-term liquidity is in line with its sector peers.

AWK vs. NRG: A comparison of their Current Ratio (MRQ) against their respective Water Utilities and Electric Utilities industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AWK

1.40

Water Utilities Industry

Max: 5.48
Q3: 3.71
Median: 1.82
Q1: 0.96
Min: 0.58

AWK’s Debt-to-Equity Ratio of 1.40 is typical for the Water Utilities industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

NRG

4.78

Electric Utilities Industry

Max: 3.40
Q3: 1.83
Median: 1.32
Q1: 0.64
Min: 0.00

With a Debt-to-Equity Ratio of 4.78, NRG operates with exceptionally high leverage compared to the Electric Utilities industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

AWK vs. NRG: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Water Utilities and Electric Utilities industry benchmarks.

Interest Coverage Ratio (TTM)

AWK

4.17

Water Utilities Industry

Max: 5.04
Q3: 4.65
Median: 3.25
Q1: 2.23
Min: 0.58

AWK’s Interest Coverage Ratio of 4.17 is positioned comfortably within the norm for the Water Utilities industry, indicating a standard and healthy capacity to cover its interest payments.

NRG

3.29

Electric Utilities Industry

Max: 18.68
Q3: 10.64
Median: 3.32
Q1: 2.62
Min: -3.31

NRG’s Interest Coverage Ratio of 3.29 is positioned comfortably within the norm for the Electric Utilities industry, indicating a standard and healthy capacity to cover its interest payments.

AWK vs. NRG: A comparison of their Interest Coverage Ratio (TTM) against their respective Water Utilities and Electric Utilities industry benchmarks.

Financial Strength at a Glance

Symbol	AWK	NRG
Current Ratio (MRQ)	0.35	0.93
Quick Ratio (MRQ)	0.32	0.77
Debt-to-Equity Ratio (MRQ)	1.40	4.78
Interest Coverage Ratio (TTM)	4.17	3.29

Growth

Revenue Growth

AWK vs. NRG: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AWK vs. NRG: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AWK

2.06%

Water Utilities Industry

Max: 5.64%
Q3: 5.51%
Median: 4.50%
Q1: 2.37%
Min: 0.00%

AWK’s Dividend Yield of 2.06% is in the lower quartile for the Water Utilities industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

NRG

1.44%

Electric Utilities Industry

Max: 7.00%
Q3: 4.67%
Median: 3.84%
Q1: 2.48%
Min: 0.00%

NRG’s Dividend Yield of 1.44% is in the lower quartile for the Electric Utilities industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

AWK vs. NRG: A comparison of their Dividend Yield (TTM) against their respective Water Utilities and Electric Utilities industry benchmarks.

Dividend Payout Ratio (TTM)

AWK

56.23%

Water Utilities Industry

Max: 324.59%
Q3: 254.46%
Median: 142.60%
Q1: 57.04%
Min: 12.69%

AWK’s Dividend Payout Ratio of 56.23% is in the lower quartile for the Water Utilities industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

NRG

13.61%

Electric Utilities Industry

Max: 150.16%
Q3: 88.91%
Median: 65.69%
Q1: 34.65%
Min: 0.00%

NRG’s Dividend Payout Ratio of 13.61% is in the lower quartile for the Electric Utilities industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

AWK vs. NRG: A comparison of their Dividend Payout Ratio (TTM) against their respective Water Utilities and Electric Utilities industry benchmarks.

Dividend at a Glance

Symbol	AWK	NRG
Dividend Yield (TTM)	2.06%	1.44%
Dividend Payout Ratio (TTM)	56.23%	13.61%

Valuation

Price-to-Earnings Ratio (TTM)

AWK

27.30

Water Utilities Industry

Max: 34.48
Q3: 27.82
Median: 18.45
Q1: 14.12
Min: 7.14

AWK’s P/E Ratio of 27.30 is within the middle range for the Water Utilities industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

NRG

54.42

Electric Utilities Industry

Max: 39.85
Q3: 21.79
Median: 15.62
Q1: 8.97
Min: 3.03

At 54.42, NRG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Electric Utilities industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

AWK vs. NRG: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Water Utilities and Electric Utilities industry benchmarks.

Price-to-Sales Ratio (TTM)

AWK

5.98

Water Utilities Industry

Max: 5.86
Q3: 3.76
Median: 2.73
Q1: 2.16
Min: 1.04

With a P/S Ratio of 5.98, AWK trades at a valuation that eclipses even the highest in the Water Utilities industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

NRG

0.97

Electric Utilities Industry

Max: 5.96
Q3: 3.09
Median: 1.93
Q1: 1.14
Min: 0.15

In the lower quartile for the Electric Utilities industry, NRG’s P/S Ratio of 0.97 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

AWK vs. NRG: A comparison of their Price-to-Sales Ratio (TTM) against their respective Water Utilities and Electric Utilities industry benchmarks.

Price-to-Book Ratio (MRQ)

AWK

2.54

Water Utilities Industry

Max: 4.29
Q3: 3.24
Median: 1.73
Q1: 1.09
Min: 0.65

AWK’s P/B Ratio of 2.54 is within the conventional range for the Water Utilities industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

NRG

13.72

Electric Utilities Industry

Max: 2.99
Q3: 1.99
Median: 1.46
Q1: 1.11
Min: 0.18

At 13.72, NRG’s P/B Ratio is at an extreme premium to the Electric Utilities industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

AWK vs. NRG: A comparison of their Price-to-Book Ratio (MRQ) against their respective Water Utilities and Electric Utilities industry benchmarks.

Valuation at a Glance

Symbol	AWK	NRG
Price-to-Earnings Ratio (TTM)	27.30	54.42
Price-to-Sales Ratio (TTM)	5.98	0.97
Price-to-Book Ratio (MRQ)	2.54	13.72
Price-to-Free Cash Flow Ratio (TTM)	4,224.17	19.23