Comprehensive Stock Comparison
Compare Consolidated Edison, Inc. (ED) vs Xcel Energy Inc. (XEL) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | ED | 10.9% revenue growth vs XEL's -5.4% |
| Value | ED | Lower P/E (18.5x vs 20.1x), PEG 1.61 vs 3.70 |
| Quality / Margins | XEL | 13.5% net margin vs ED's 12.3% |
| Stability / Safety | ED | Lower D/E ratio (1.3% vs 154.7%) |
| Dividends | ED | 2.8% yield, vs XEL's 2.5% |
| Momentum (1Y) | XEL | +18.8% vs ED's +14.2% |
| Efficiency (ROA) | ED | 2.8% ROA vs XEL's 2.4%, ROIC 6.0% vs 3.8% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Consolidated Edison is a regulated utility that provides essential electric, gas, and steam services to millions of customers in New York City and surrounding areas. It generates nearly all its revenue from regulated utility operations — primarily electricity distribution (about 60% of revenue) and gas distribution (about 30%) — with returns determined by state regulators. Its key advantage is its monopoly franchise status in densely populated, economically vital territories where infrastructure barriers to entry are prohibitive.
Xcel Energy is a regulated electric and natural gas utility serving customers across eight Midwestern and Western states. It generates revenue primarily through regulated rate structures — earning returns on its infrastructure investments in generation, transmission, and distribution — with electricity contributing roughly 75% of operating income and natural gas about 25%. Its key advantage is its regulated monopoly status in its service territories, providing stable, predictable returns through cost recovery mechanisms approved by state utility commissions.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
ED leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). XEL leads in 1 (Total Returns). 2 tied.
Financial Metrics (TTM)
ED and XEL operate at a comparable scale, with $16.6B and $14.2B in trailing revenue. Profitability is closely matched — net margins range from 13.5% (XEL) to 12.3% (ED). On growth, ED holds the edge at +10.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | EDConsolidated Edis… | XELXcel Energy Inc. |
|---|---|---|
| RevenueTrailing 12 months | $16.6B | $14.2B |
| EBITDAEarnings before interest/tax | $5.2B | $5.4B |
| Net IncomeAfter-tax profit | $2.0B | $1.9B |
| Free Cash FlowCash after capex | $3.4B | -$5.2B |
| Gross MarginGross profit ÷ Revenue | +64.4% | +46.3% |
| Operating MarginEBIT ÷ Revenue | +17.8% | +16.5% |
| Net MarginNet income ÷ Revenue | +12.3% | +13.5% |
| FCF MarginFCF ÷ Revenue | +20.4% | -36.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.7% | +7.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +12.4% | -25.6% |
Valuation Metrics
At 20.0x trailing earnings, ED trades at a 18% valuation discount to XEL's 24.2x P/E. Adjusting for growth (PEG ratio), ED offers better value at 1.74x vs XEL's 4.46x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | EDConsolidated Edis… | XELXcel Energy Inc. |
|---|---|---|
| Market CapShares × price | $26.5B | $49.3B |
| Enterprise ValueMkt cap + debt − cash | $26.8B | $79.3B |
| Trailing P/EPrice ÷ TTM EPS | 19.95x | 24.23x |
| Forward P/EPrice ÷ next-FY EPS est. | 18.45x | 20.12x |
| PEG RatioP/E ÷ EPS growth rate | 1.74x | 4.46x |
| EV / EBITDAEnterprise value multiple | 5.10x | 15.08x |
| Price / SalesMarket cap ÷ Revenue | 1.57x | 3.67x |
| Price / BookPrice ÷ Book value/share | 1.67x | 2.40x |
| Price / FCFMarket cap ÷ FCF | 5.85x | — |
Profitability & Efficiency
XEL delivers a 9.0% return on equity — every $100 of shareholder capital generates $9 in annual profit, vs $8 for ED. ED carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to XEL's 1.55x. On the Piotroski fundamental quality scale (0–9), ED scores 7/9 vs XEL's 5/9, reflecting strong financial health.
| Metric | EDConsolidated Edis… | XELXcel Energy Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +8.4% | +9.0% |
| ROA (TTM)Return on assets | +2.8% | +2.4% |
| ROICReturn on invested capital | +6.0% | +3.8% |
| ROCEReturn on capital employed | +6.6% | +3.9% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 5 |
| Debt / EquityFinancial leverage | 0.01x | 1.55x |
| Net DebtTotal debt minus cash | $314M | $30.0B |
| Cash & Equiv.Liquid assets | $1M | $179M |
| Total DebtShort + long-term debt | $315M | $30.2B |
| Interest CoverageEBIT ÷ Interest expense | 0.77x | 2.02x |
Total Returns (with DRIP)
A $10,000 investment in ED five years ago would be worth $19,220 today (with dividends reinvested), compared to $15,839 for XEL. Over the past 12 months, XEL leads with a +18.8% total return vs ED's +14.2%. The 3-year compound annual growth rate (CAGR) favors XEL at 11.7% vs ED's 11.1% — a key indicator of consistent wealth creation.
| Metric | EDConsolidated Edis… | XELXcel Energy Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +13.4% | +11.6% |
| 1-Year ReturnPast 12 months | +14.2% | +18.8% |
| 3-Year ReturnCumulative with dividends | +37.2% | +39.2% |
| 5-Year ReturnCumulative with dividends | +92.2% | +58.4% |
| 10-Year ReturnCumulative with dividends | +104.7% | +156.3% |
| CAGR (3Y)Annualised 3-year return | +11.1% | +11.7% |
Risk & Volatility
ED is the less volatile stock with a -0.20 beta — it tends to amplify market swings less than XEL's 0.19 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | EDConsolidated Edis… | XELXcel Energy Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | -0.20x | 0.19x |
| 52-Week HighHighest price in past year | $115.09 | $84.23 |
| 52-Week LowLowest price in past year | $94.96 | $65.21 |
| % of 52W HighCurrent price vs 52-week peak | +97.8% | +99.0% |
| RSI (14)Momentum oscillator 0–100 | 58.0 | 71.6 |
| Avg Volume (50D)Average daily shares traded | 1.5M | 4.5M |
Analyst Outlook
Wall Street rates ED as "Hold" and XEL as "Buy". Consensus price targets imply 7.4% upside for XEL (target: $90) vs -5.1% for ED (target: $107). For income investors, ED offers the higher dividend yield at 2.81% vs XEL's 2.50%.
| Metric | EDConsolidated Edis… | XELXcel Energy Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $106.80 | $89.50 |
| # AnalystsCovering analysts | 27 | 26 |
| Dividend YieldAnnual dividend ÷ price | +2.8% | +2.5% |
| Dividend StreakConsecutive years of raises | 0 | 16 |
| Dividend / ShareAnnual DPS | $3.16 | $2.09 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Consolidated Edison… (ED) | 100 | 124.71 | +24.7% |
| Xcel Energy Inc. (XEL) | 100 | 113.1 | +13.1% |
Consolidated Edison… (ED) returned +92% over 5 years vs Xcel Energy Inc. (XEL)'s +58%. A $10,000 investment in ED 5 years ago would be worth $19,220 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Consolidated Edison… (ED) | $12.1B | $16.9B | +40.2% |
| Xcel Energy Inc. (XEL) | $11.1B | $13.4B | +21.0% |
Consolidated Edison, Inc.'s revenue grew from $12.1B (2016) to $16.9B (2025) — a 3.8% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Consolidated Edison… (ED) | 10.3% | 12.0% | +15.9% |
| Xcel Energy Inc. (XEL) | 10.1% | 14.4% | +42.4% |
Consolidated Edison, Inc.'s net margin went from 10% (2016) to 12% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Consolidated Edison… (ED) | 17.2 | 17.6 | +2.3% |
| Xcel Energy Inc. (XEL) | 21.4 | 19.6 | -8.4% |
Consolidated Edison, Inc. has traded in a 13x–22x P/E range over 9 years; current trailing P/E is ~20x. Xcel Energy Inc. has traded in a 19x–24x P/E range over 8 years; current trailing P/E is ~24x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Consolidated Edison… (ED) | 4.12 | 5.64 | +36.9% |
| Xcel Energy Inc. (XEL) | 2.21 | 3.44 | +55.7% |
Consolidated Edison, Inc.'s EPS grew from $4.12 (2016) to $5.64 (2025) — a 4% CAGR.
Chart 6Free Cash Flow — 5 Years
Consolidated Edison, Inc. generated $5B FCF in 2025 (+471% vs 2021). Xcel Energy Inc. generated $-3B FCF in 2024 (-33% vs 2021).
ED vs XEL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ED or XEL a better buy right now?
Consolidated Edison, Inc. (ED) offers the better valuation at 20.0x trailing P/E (18.5x forward), making it the more compelling value choice. Analysts rate Xcel Energy Inc. (XEL) a "Buy" — based on 26 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ED or XEL?
On trailing P/E, Consolidated Edison, Inc. (ED) is the cheapest at 20.0x versus Xcel Energy Inc. at 24.2x. On forward P/E, Consolidated Edison, Inc. is actually cheaper at 18.5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Consolidated Edison, Inc. wins at 1.61x versus Xcel Energy Inc.'s 3.70x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — ED or XEL?
Over the past 5 years, Consolidated Edison, Inc. (ED) delivered a total return of +92.2%, compared to +58.4% for Xcel Energy Inc. (XEL). A $10,000 investment in ED five years ago would be worth approximately $19K today (assuming dividends reinvested). Over 10 years, the gap is even starker: XEL returned +156.3% versus ED's +104.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ED or XEL?
By beta (market sensitivity over 5 years), Consolidated Edison, Inc. (ED) is the lower-risk stock at -0.20β versus Xcel Energy Inc.'s 0.19β — meaning XEL is approximately -197% more volatile than ED relative to the S&P 500. On balance sheet safety, Consolidated Edison, Inc. (ED) carries a lower debt/equity ratio of 1% versus 155% for Xcel Energy Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — ED or XEL?
Xcel Energy Inc. (XEL) is the more profitable company, earning 14.4% net margin versus 12.0% for Consolidated Edison, Inc. — meaning it keeps 14.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: XEL leads at 17.8% versus 17.3% for ED. At the gross margin level — before operating expenses — ED leads at 81.0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is ED or XEL more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Consolidated Edison, Inc. (ED) is the more undervalued stock at a PEG of 1.61x versus Xcel Energy Inc.'s 3.70x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Consolidated Edison, Inc. (ED) trades at 18.5x forward P/E versus 20.1x for Xcel Energy Inc. — 1.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for XEL: 7.4% to $89.50.
07Which pays a better dividend — ED or XEL?
All stocks in this comparison pay dividends. Consolidated Edison, Inc. (ED) offers the highest yield at 2.8%, versus 2.5% for Xcel Energy Inc. (XEL).
08Is ED or XEL better for a retirement portfolio?
For long-horizon retirement investors, Consolidated Edison, Inc. (ED) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.20), 2.8% yield, +104.7% 10Y return). Both have compounded well over 10 years (ED: +104.7%, XEL: +156.3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between ED and XEL?
Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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