Comprehensive Stock Comparison
Compare WEC Energy Group, Inc. (WEC) 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 | WEC | 14.0% revenue growth vs XEL's -5.4% |
| Value | XEL | Lower P/E (20.1x vs 20.9x), PEG 3.70 vs 4.21 |
| Quality / Margins | WEC | 15.9% net margin vs XEL's 13.5% |
| Stability / Safety | WEC | Beta 0.09 vs XEL's 0.19, lower leverage |
| Dividends | WEC | 3.0% yield, 23-year raise streak, vs XEL's 2.5% |
| Momentum (1Y) | XEL | +18.8% vs WEC's +13.0% |
| Efficiency (ROA) | WEC | 3.0% ROA vs XEL's 2.4%, ROIC 4.6% 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
WEC Energy Group is a regulated electric and natural gas utility serving customers across multiple Midwestern states. It generates revenue primarily through regulated utility operations — electricity generation and distribution (~70%) and natural gas distribution (~30%) — with rates approved by state commissions. Its key advantage is its regulated monopoly status in its service territories, providing stable cash flows through cost recovery and a reasonable return on invested capital.
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
WEC leads in 3 of 6 categories — strongest in Financial Metrics and Profitability & Efficiency. 3 categories are tied.
Financial Metrics (TTM)
XEL and WEC operate at a comparable scale, with $14.2B and $9.8B in trailing revenue. Profitability is closely matched — net margins range from 15.9% (WEC) to 13.5% (XEL). On growth, WEC holds the edge at +11.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | WECWEC Energy Group,… | XELXcel Energy Inc. |
|---|---|---|
| RevenueTrailing 12 months | $9.8B | $14.2B |
| EBITDAEarnings before interest/tax | $3.9B | $5.4B |
| Net IncomeAfter-tax profit | $1.6B | $1.9B |
| Free Cash FlowCash after capex | -$1.4B | -$5.2B |
| Gross MarginGross profit ÷ Revenue | +50.5% | +46.3% |
| Operating MarginEBIT ÷ Revenue | +24.2% | +16.5% |
| Net MarginNet income ÷ Revenue | +15.9% | +13.5% |
| FCF MarginFCF ÷ Revenue | -14.8% | -36.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +11.1% | +7.4% |
| EPS Growth (YoY)Latest quarter vs prior year | -32.2% | -25.6% |
Valuation Metrics
At 24.2x trailing earnings, WEC trades at a 0% valuation discount to XEL's 24.2x P/E. Adjusting for growth (PEG ratio), XEL offers better value at 4.46x vs WEC's 4.87x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | WECWEC Energy Group,… | XELXcel Energy Inc. |
|---|---|---|
| Market CapShares × price | $38.1B | $49.3B |
| Enterprise ValueMkt cap + debt − cash | $41.9B | $79.3B |
| Trailing P/EPrice ÷ TTM EPS | 24.22x | 24.23x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.92x | 20.12x |
| PEG RatioP/E ÷ EPS growth rate | 4.87x | 4.46x |
| EV / EBITDAEnterprise value multiple | 10.86x | 15.08x |
| Price / SalesMarket cap ÷ Revenue | 3.88x | 3.67x |
| Price / BookPrice ÷ Book value/share | 0.94x | 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 $4 for WEC. WEC carries lower financial leverage with a 0.09x debt-to-equity ratio, signaling a more conservative balance sheet compared to XEL's 1.55x. On the Piotroski fundamental quality scale (0–9), WEC scores 6/9 vs XEL's 5/9, reflecting solid financial health.
| Metric | WECWEC Energy Group,… | XELXcel Energy Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +3.8% | +9.0% |
| ROA (TTM)Return on assets | +3.0% | +2.4% |
| ROICReturn on invested capital | +4.6% | +3.8% |
| ROCEReturn on capital employed | +5.4% | +3.9% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.09x | 1.55x |
| Net DebtTotal debt minus cash | $3.8B | $30.0B |
| Cash & Equiv.Liquid assets | $28M | $179M |
| Total DebtShort + long-term debt | $3.8B | $30.2B |
| Interest CoverageEBIT ÷ Interest expense | 2.65x | 2.02x |
Total Returns (with DRIP)
A $10,000 investment in WEC five years ago would be worth $16,051 today (with dividends reinvested), compared to $15,839 for XEL. Over the past 12 months, XEL leads with a +18.8% total return vs WEC's +13.0%. The 3-year compound annual growth rate (CAGR) favors WEC at 12.8% vs XEL's 11.7% — a key indicator of consistent wealth creation.
| Metric | WECWEC Energy Group,… | XELXcel Energy Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +10.7% | +11.6% |
| 1-Year ReturnPast 12 months | +13.0% | +18.8% |
| 3-Year ReturnCumulative with dividends | +43.4% | +39.2% |
| 5-Year ReturnCumulative with dividends | +60.5% | +58.4% |
| 10-Year ReturnCumulative with dividends | +155.9% | +156.3% |
| CAGR (3Y)Annualised 3-year return | +12.8% | +11.7% |
Risk & Volatility
WEC is the less volatile stock with a 0.09 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 | WECWEC Energy Group,… | XELXcel Energy Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.09x | 0.19x |
| 52-Week HighHighest price in past year | $118.19 | $84.23 |
| 52-Week LowLowest price in past year | $100.61 | $65.21 |
| % of 52W HighCurrent price vs 52-week peak | +99.0% | +99.0% |
| RSI (14)Momentum oscillator 0–100 | 65.4 | 71.6 |
| Avg Volume (50D)Average daily shares traded | 1.9M | 4.5M |
Analyst Outlook
Wall Street rates WEC as "Hold" and XEL as "Buy". Consensus price targets imply 7.4% upside for XEL (target: $90) vs 3.5% for WEC (target: $121). For income investors, WEC offers the higher dividend yield at 2.99% vs XEL's 2.50%.
| Metric | WECWEC Energy Group,… | XELXcel Energy Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $121.00 | $89.50 |
| # AnalystsCovering analysts | 34 | 26 |
| Dividend YieldAnnual dividend ÷ price | +3.0% | +2.5% |
| Dividend StreakConsecutive years of raises | 23 | 16 |
| Dividend / ShareAnnual DPS | $3.50 | $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 |
|---|---|---|---|
| WEC Energy Group, I… (WEC) | 100 | 112.44 | +12.4% |
| Xcel Energy Inc. (XEL) | 100 | 113.1 | +13.1% |
WEC Energy Group, I… (WEC) returned +61% over 5 years vs Xcel Energy Inc. (XEL)'s +58%. A $10,000 investment in WEC 5 years ago would be worth $16,051 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| WEC Energy Group, I… (WEC) | $7.5B | $9.8B | +31.2% |
| Xcel Energy Inc. (XEL) | $11.1B | $13.4B | +21.0% |
WEC Energy Group, Inc.'s revenue grew from $7.5B (2016) to $9.8B (2025) — a 3.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| WEC Energy Group, I… (WEC) | 12.6% | 15.9% | +26.4% |
| Xcel Energy Inc. (XEL) | 10.1% | 14.4% | +42.4% |
WEC Energy Group, Inc.'s net margin went from 13% (2016) to 16% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| WEC Energy Group, I… (WEC) | 17.5 | 21.8 | +24.6% |
| Xcel Energy Inc. (XEL) | 21.4 | 19.6 | -8.4% |
WEC Energy Group, Inc. has traded in a 18x–26x P/E range over 9 years; current trailing P/E is ~24x. 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 |
|---|---|---|---|
| WEC Energy Group, I… (WEC) | 2.96 | 4.83 | +63.2% |
| Xcel Energy Inc. (XEL) | 2.21 | 3.44 | +55.7% |
WEC Energy Group, Inc.'s EPS grew from $2.96 (2016) to $4.83 (2025) — a 6% CAGR.
Chart 6Free Cash Flow — 5 Years
WEC Energy Group, Inc. generated $-1B FCF in 2025 (-363% vs 2021). Xcel Energy Inc. generated $-3B FCF in 2024 (-33% vs 2021).
WEC vs XEL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is WEC or XEL a better buy right now?
WEC Energy Group, Inc. (WEC) offers the better valuation at 24.2x trailing P/E (20.9x 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 — WEC or XEL?
On trailing P/E, WEC Energy Group, Inc. (WEC) is the cheapest at 24.2x versus Xcel Energy Inc. at 24.2x. On forward P/E, Xcel Energy Inc. is actually cheaper at 20.1x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Xcel Energy Inc. wins at 3.70x versus WEC Energy Group, Inc.'s 4.21x.
03Which is the better long-term investment — WEC or XEL?
Over the past 5 years, WEC Energy Group, Inc. (WEC) delivered a total return of +60.5%, compared to +58.4% for Xcel Energy Inc. (XEL). A $10,000 investment in WEC five years ago would be worth approximately $16K today (assuming dividends reinvested). Over 10 years, the gap is even starker: XEL returned +156.3% versus WEC's +155.9%. 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 — WEC or XEL?
By beta (market sensitivity over 5 years), WEC Energy Group, Inc. (WEC) is the lower-risk stock at 0.09β versus Xcel Energy Inc.'s 0.19β — meaning XEL is approximately 115% more volatile than WEC relative to the S&P 500. On balance sheet safety, WEC Energy Group, Inc. (WEC) carries a lower debt/equity ratio of 9% versus 155% for Xcel Energy Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — WEC or XEL?
WEC Energy Group, Inc. (WEC) is the more profitable company, earning 15.9% net margin versus 14.4% for Xcel Energy Inc. — meaning it keeps 15.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WEC leads at 24.2% versus 17.8% for XEL. At the gross margin level — before operating expenses — WEC leads at 50.5%, 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 WEC 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, Xcel Energy Inc. (XEL) is the more undervalued stock at a PEG of 3.70x versus WEC Energy Group, Inc.'s 4.21x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Xcel Energy Inc. (XEL) trades at 20.1x forward P/E versus 20.9x for WEC Energy Group, Inc. — 0.8x 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 — WEC or XEL?
All stocks in this comparison pay dividends. WEC Energy Group, Inc. (WEC) offers the highest yield at 3.0%, versus 2.5% for Xcel Energy Inc. (XEL).
08Is WEC or XEL better for a retirement portfolio?
For long-horizon retirement investors, WEC Energy Group, Inc. (WEC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.09), 3.0% yield, +155.9% 10Y return). Both have compounded well over 10 years (WEC: +155.9%, 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 WEC 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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