Comprehensive Stock Comparison
Compare Fortis Inc. (FTS) 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 | FTS | 5.8% revenue growth vs XEL's -5.4% |
| Value | FTS | Lower P/E (15.9x vs 20.1x), PEG 3.15 vs 3.70 |
| Quality / Margins | FTS | 14.8% net margin vs XEL's 13.5% |
| Stability / Safety | FTS | Lower D/E ratio (133.9% vs 154.7%) |
| Dividends | XEL | 2.5% yield, 16-year raise streak, vs FTS's 2.1% |
| Momentum (1Y) | FTS | +35.2% vs XEL's +18.8% |
| Efficiency (ROA) | XEL | 2.4% ROA vs FTS's 2.2%, ROIC 3.8% vs 4.4% |
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
Fortis Inc. is a North American regulated electric and gas utility that generates, transmits, and distributes electricity and natural gas to millions of customers across Canada, the United States, and the Caribbean. It earns stable, regulated returns primarily from rate-regulated utility operations — with electricity distribution contributing roughly 60% of revenue and gas distribution about 30% — supplemented by contracted wholesale power sales. The company's key advantage is its geographically diversified portfolio of essential utility assets operating under predictable regulatory frameworks that provide stable cash flows and inflation-protected returns.
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
FTS leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). XEL leads in 2 (Profitability & Efficiency, Analyst Outlook).
Financial Metrics (TTM)
XEL and FTS operate at a comparable scale, with $14.2B and $11.3B in trailing revenue. Profitability is closely matched — net margins range from 14.8% (FTS) to 13.5% (XEL). On growth, XEL holds the edge at +7.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | FTSFortis Inc. | XELXcel Energy Inc. |
|---|---|---|
| RevenueTrailing 12 months | $11.3B | $14.2B |
| EBITDAEarnings before interest/tax | $5.2B | $5.4B |
| Net IncomeAfter-tax profit | $1.7B | $1.9B |
| Free Cash FlowCash after capex | -$2.0B | -$5.2B |
| Gross MarginGross profit ÷ Revenue | +56.5% | +46.3% |
| Operating MarginEBIT ÷ Revenue | +28.6% | +16.5% |
| Net MarginNet income ÷ Revenue | +14.8% | +13.5% |
| FCF MarginFCF ÷ Revenue | -17.7% | -36.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +4.4% | +7.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.8% | -25.6% |
Valuation Metrics
At 23.1x trailing earnings, FTS trades at a 4% valuation discount to XEL's 24.2x P/E. Adjusting for growth (PEG ratio), XEL offers better value at 4.46x vs FTS's 4.60x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | FTSFortis Inc. | XELXcel Energy Inc. |
|---|---|---|
| Market CapShares × price | $29.2B | $49.3B |
| Enterprise ValueMkt cap + debt − cash | $54.2B | $79.3B |
| Trailing P/EPrice ÷ TTM EPS | 23.14x | 24.23x |
| Forward P/EPrice ÷ next-FY EPS est. | 15.87x | 20.12x |
| PEG RatioP/E ÷ EPS growth rate | 4.60x | 4.46x |
| EV / EBITDAEnterprise value multiple | 13.37x | 15.08x |
| Price / SalesMarket cap ÷ Revenue | 3.28x | 3.67x |
| Price / BookPrice ÷ Book value/share | 1.61x | 2.40x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
XEL delivers a 9.0% return on equity — every $100 of shareholder capital generates $9 in annual profit, vs $6 for FTS. FTS carries lower financial leverage with a 1.34x debt-to-equity ratio, signaling a more conservative balance sheet compared to XEL's 1.55x.
| Metric | FTSFortis Inc. | XELXcel Energy Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +6.5% | +9.0% |
| ROA (TTM)Return on assets | +2.2% | +2.4% |
| ROICReturn on invested capital | +4.4% | +3.8% |
| ROCEReturn on capital employed | +5.2% | +3.9% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 1.34x | 1.55x |
| Net DebtTotal debt minus cash | $34.3B | $30.0B |
| Cash & Equiv.Liquid assets | $367M | $179M |
| Total DebtShort + long-term debt | $34.6B | $30.2B |
| Interest CoverageEBIT ÷ Interest expense | — | 2.02x |
Total Returns (with DRIP)
A $10,000 investment in FTS five years ago would be worth $16,825 today (with dividends reinvested), compared to $15,839 for XEL. Over the past 12 months, FTS leads with a +35.2% total return vs XEL's +18.8%. The 3-year compound annual growth rate (CAGR) favors FTS at 16.6% vs XEL's 11.7% — a key indicator of consistent wealth creation.
| Metric | FTSFortis Inc. | XELXcel Energy Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +11.7% | +11.6% |
| 1-Year ReturnPast 12 months | +35.2% | +18.8% |
| 3-Year ReturnCumulative with dividends | +58.6% | +39.2% |
| 5-Year ReturnCumulative with dividends | +68.3% | +58.4% |
| 10-Year ReturnCumulative with dividends | +160.9% | +156.3% |
| CAGR (3Y)Annualised 3-year return | +16.6% | +11.7% |
Risk & Volatility
FTS is the less volatile stock with a -0.10 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 | FTSFortis Inc. | XELXcel Energy Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | -0.10x | 0.19x |
| 52-Week HighHighest price in past year | $57.93 | $84.23 |
| 52-Week LowLowest price in past year | $43.19 | $65.21 |
| % of 52W HighCurrent price vs 52-week peak | +99.3% | +99.0% |
| RSI (14)Momentum oscillator 0–100 | 67.0 | 71.6 |
| Avg Volume (50D)Average daily shares traded | 863K | 4.5M |
Analyst Outlook
Wall Street rates FTS as "Hold" and XEL as "Buy". Consensus price targets imply 7.4% upside for XEL (target: $90) vs -11.5% for FTS (target: $51). For income investors, XEL offers the higher dividend yield at 2.50% vs FTS's 2.10%.
| Metric | FTSFortis Inc. | XELXcel Energy Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $50.86 | $89.50 |
| # AnalystsCovering analysts | 12 | 26 |
| Dividend YieldAnnual dividend ÷ price | +2.1% | +2.5% |
| Dividend StreakConsecutive years of raises | 4 | 16 |
| Dividend / ShareAnnual DPS | $1.65 | $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 | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Fortis Inc. (FTS) | 100 | 130.28 | +30.3% |
| Xcel Energy Inc. (XEL) | 100 | 119.54 | +19.5% |
Fortis Inc. (FTS) returned +68% over 5 years vs Xcel Energy Inc. (XEL)'s +58%. A $10,000 investment in FTS 5 years ago would be worth $16,825 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Fortis Inc. (FTS) | $6.8B | $12.2B | +78.0% |
| Xcel Energy Inc. (XEL) | $11.1B | $13.4B | +21.0% |
Fortis Inc.'s revenue grew from $6.8B (2016) to $12.2B (2025) — a 6.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Fortis Inc. (FTS) | 9.7% | 14.8% | +53.2% |
| Xcel Energy Inc. (XEL) | 10.1% | 14.4% | +42.4% |
Fortis Inc.'s net margin went from 10% (2016) to 15% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Fortis Inc. (FTS) | 15.9 | 15.3 | -3.8% |
| Xcel Energy Inc. (XEL) | 21.4 | 19.6 | -8.4% |
Fortis Inc. has traded in a 11x–19x P/E range over 9 years; current trailing P/E is ~23x. 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 |
|---|---|---|---|
| Fortis Inc. (FTS) | 1.89 | 3.4 | +79.9% |
| Xcel Energy Inc. (XEL) | 2.21 | 3.44 | +55.7% |
Fortis Inc.'s EPS grew from $1.89 (2016) to $3.40 (2025) — a 7% CAGR.
Chart 6Free Cash Flow — 5 Years
Fortis Inc. generated $-2B FCF in 2025 (-292% vs 2021). Xcel Energy Inc. generated $-3B FCF in 2024 (-33% vs 2021).
FTS vs XEL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is FTS or XEL a better buy right now?
Fortis Inc. (FTS) offers the better valuation at 23.1x trailing P/E (15.9x 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 — FTS or XEL?
On trailing P/E, Fortis Inc. (FTS) is the cheapest at 23.1x versus Xcel Energy Inc. at 24.2x. On forward P/E, Fortis Inc. is actually cheaper at 15.9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Fortis Inc. wins at 3.15x versus Xcel Energy Inc.'s 3.70x.
03Which is the better long-term investment — FTS or XEL?
Over the past 5 years, Fortis Inc. (FTS) delivered a total return of +68.3%, compared to +58.4% for Xcel Energy Inc. (XEL). A $10,000 investment in FTS five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: FTS returned +160.9% versus XEL's +156.3%. 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 — FTS or XEL?
By beta (market sensitivity over 5 years), Fortis Inc. (FTS) is the lower-risk stock at -0.10β versus Xcel Energy Inc.'s 0.19β — meaning XEL is approximately -287% more volatile than FTS relative to the S&P 500. On balance sheet safety, Fortis Inc. (FTS) carries a lower debt/equity ratio of 134% versus 155% for Xcel Energy Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — FTS or XEL?
Fortis Inc. (FTS) is the more profitable company, earning 14.8% net margin versus 14.4% for Xcel Energy Inc. — meaning it keeps 14.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FTS leads at 28.7% versus 17.8% for XEL. At the gross margin level — before operating expenses — XEL leads at 45.7%, 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 FTS 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, Fortis Inc. (FTS) is the more undervalued stock at a PEG of 3.15x 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, Fortis Inc. (FTS) trades at 15.9x forward P/E versus 20.1x for Xcel Energy Inc. — 4.3x 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 — FTS or XEL?
All stocks in this comparison pay dividends. Xcel Energy Inc. (XEL) offers the highest yield at 2.5%, versus 2.1% for Fortis Inc. (FTS).
08Is FTS or XEL better for a retirement portfolio?
For long-horizon retirement investors, Fortis Inc. (FTS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.10), 2.1% yield, +160.9% 10Y return). Both have compounded well over 10 years (FTS: +160.9%, 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 FTS 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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