NRG vs. TAC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at NRG and TAC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | NRG | TAC |
|---|---|---|
| Company Name | NRG Energy, Inc. | TransAlta Corporation |
| Country | United States | Canada |
| GICS Sector | Utilities | Utilities |
| GICS Industry | Electric Utilities | Independent Power and Renewable Electricity Producers |
| Market Capitalization | 28.66 billion USD | 3.67 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | December 2, 2003 | July 31, 2001 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of NRG and TAC 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.
Historical Performance at a Glance
| Symbol | NRG | TAC |
|---|---|---|
| 5-Day Price Return | -3.64% | 1.66% |
| 13-Week Price Return | -8.09% | 34.83% |
| 26-Week Price Return | 39.47% | 15.02% |
| 52-Week Price Return | 79.97% | 49.52% |
| Month-to-Date Return | -11.37% | 2.88% |
| Year-to-Date Return | 64.25% | -15.64% |
| 10-Day Avg. Volume | 2.69M | 1.27M |
| 3-Month Avg. Volume | 3.14M | 1.58M |
| 3-Month Volatility | 40.50% | 32.80% |
| Beta | 1.16 | 0.12 |
Profitability
Return on Equity (TTM)
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.
TAC
-6.69%
Independent Power and Renewable Electricity Producers Industry
- Max
- 30.49%
- Q3
- 14.63%
- Median
- 7.41%
- Q1
- 3.67%
- Min
- -8.17%
TAC has a negative Return on Equity of -6.69%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Net Profit Margin (TTM)
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.
TAC
-10.95%
Independent Power and Renewable Electricity Producers Industry
- Max
- 32.12%
- Q3
- 16.71%
- Median
- 10.67%
- Q1
- 5.10%
- Min
- -6.37%
TAC has a negative Net Profit Margin of -10.95%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
Operating Profit Margin (TTM)
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.
TAC
18.57%
Independent Power and Renewable Electricity Producers Industry
- Max
- 42.59%
- Q3
- 29.96%
- Median
- 18.17%
- Q1
- 12.79%
- Min
- 4.70%
TAC’s Operating Profit Margin of 18.57% is around the midpoint for the Independent Power and Renewable Electricity Producers industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | NRG | TAC |
|---|---|---|
| Return on Equity (TTM) | 20.75% | -6.69% |
| Return on Assets (TTM) | 2.16% | -1.26% |
| Net Profit Margin (TTM) | 1.78% | -10.95% |
| Operating Profit Margin (TTM) | 3.87% | 18.57% |
| Gross Profit Margin (TTM) | 17.25% | -90.82% |
Financial Strength
Current Ratio (MRQ)
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.
TAC
0.79
Independent Power and Renewable Electricity Producers Industry
- Max
- 1.74
- Q3
- 1.21
- Median
- 0.86
- Q1
- 0.62
- Min
- 0.25
TAC’s Current Ratio of 0.79 aligns with the median group of the Independent Power and Renewable Electricity Producers industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
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.
TAC
2.86
Independent Power and Renewable Electricity Producers Industry
- Max
- 3.93
- Q3
- 2.66
- Median
- 1.75
- Q1
- 1.05
- Min
- 0.22
TAC’s leverage is in the upper quartile of the Independent Power and Renewable Electricity Producers industry, with a Debt-to-Equity Ratio of 2.86. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
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.
TAC
2.60
Independent Power and Renewable Electricity Producers Industry
- Max
- 10.03
- Q3
- 7.41
- Median
- 2.59
- Q1
- 1.32
- Min
- -1.62
TAC’s Interest Coverage Ratio of 2.60 is positioned comfortably within the norm for the Independent Power and Renewable Electricity Producers industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | NRG | TAC |
|---|---|---|
| Current Ratio (MRQ) | 0.93 | 0.79 |
| Quick Ratio (MRQ) | 0.77 | 0.67 |
| Debt-to-Equity Ratio (MRQ) | 4.78 | 2.86 |
| Interest Coverage Ratio (TTM) | 3.29 | 2.60 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
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.
TAC
2.44%
Independent Power and Renewable Electricity Producers Industry
- Max
- 8.02%
- Q3
- 5.65%
- Median
- 4.08%
- Q1
- 2.47%
- Min
- 0.00%
TAC’s Dividend Yield of 2.44% is in the lower quartile for the Independent Power and Renewable Electricity Producers industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio (TTM)
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.
TAC
53.91%
Independent Power and Renewable Electricity Producers Industry
- Max
- 125.56%
- Q3
- 90.24%
- Median
- 50.41%
- Q1
- 17.76%
- Min
- 0.00%
TAC’s Dividend Payout Ratio of 53.91% is within the typical range for the Independent Power and Renewable Electricity Producers industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | NRG | TAC |
|---|---|---|
| Dividend Yield (TTM) | 1.44% | 2.44% |
| Dividend Payout Ratio (TTM) | 13.61% | 53.91% |
Valuation
Price-to-Earnings Ratio (TTM)
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.
TAC
--
Independent Power and Renewable Electricity Producers Industry
- Max
- 51.94
- Q3
- 27.00
- Median
- 10.10
- Q1
- 7.02
- Min
- 4.18
P/E Ratio data for TAC is currently unavailable.
Price-to-Sales Ratio (TTM)
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.
TAC
4.84
Independent Power and Renewable Electricity Producers Industry
- Max
- 6.94
- Q3
- 3.56
- Median
- 2.46
- Q1
- 0.86
- Min
- 0.39
TAC’s P/S Ratio of 4.84 is in the upper echelon for the Independent Power and Renewable Electricity Producers industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
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.
TAC
2.76
Independent Power and Renewable Electricity Producers Industry
- Max
- 3.49
- Q3
- 1.92
- Median
- 1.33
- Q1
- 0.81
- Min
- 0.35
TAC’s P/B Ratio of 2.76 is in the upper tier for the Independent Power and Renewable Electricity Producers industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | NRG | TAC |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 54.42 | -- |
| Price-to-Sales Ratio (TTM) | 0.97 | 4.84 |
| Price-to-Book Ratio (MRQ) | 13.72 | 2.76 |
| Price-to-Free Cash Flow Ratio (TTM) | 19.23 | 15.40 |