Comprehensive Stock Comparison
Compare Xcel Energy Inc. (XEL) vs WEC Energy Group, Inc. (WEC) 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
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.
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.
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 | XELXcel Energy Inc. | WECWEC Energy Group,… |
|---|---|---|
| RevenueTrailing 12 months | $14.2B | $9.8B |
| EBITDAEarnings before interest/tax | $5.4B | $3.9B |
| Net IncomeAfter-tax profit | $1.9B | $1.6B |
| Free Cash FlowCash after capex | -$5.2B | -$1.4B |
| Gross MarginGross profit ÷ Revenue | +46.3% | +50.5% |
| Operating MarginEBIT ÷ Revenue | +16.5% | +24.2% |
| Net MarginNet income ÷ Revenue | +13.5% | +15.9% |
| FCF MarginFCF ÷ Revenue | -36.2% | -14.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +7.4% | +11.1% |
| EPS Growth (YoY)Latest quarter vs prior year | -25.6% | -32.2% |
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 | XELXcel Energy Inc. | WECWEC Energy Group,… |
|---|---|---|
| Market CapShares × price | $49.3B | $38.1B |
| Enterprise ValueMkt cap + debt − cash | $79.3B | $41.9B |
| Trailing P/EPrice ÷ TTM EPS | 24.23x | 24.22x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.12x | 20.92x |
| PEG RatioP/E ÷ EPS growth rate | 4.46x | 4.87x |
| EV / EBITDAEnterprise value multiple | 15.08x | 10.86x |
| Price / SalesMarket cap ÷ Revenue | 3.67x | 3.88x |
| Price / BookPrice ÷ Book value/share | 2.40x | 0.94x |
| 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 | XELXcel Energy Inc. | WECWEC Energy Group,… |
|---|---|---|
| ROE (TTM)Return on equity | +9.0% | +3.8% |
| ROA (TTM)Return on assets | +2.4% | +3.0% |
| ROICReturn on invested capital | +3.8% | +4.6% |
| ROCEReturn on capital employed | +3.9% | +5.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 1.55x | 0.09x |
| Net DebtTotal debt minus cash | $30.0B | $3.8B |
| Cash & Equiv.Liquid assets | $179M | $28M |
| Total DebtShort + long-term debt | $30.2B | $3.8B |
| Interest CoverageEBIT ÷ Interest expense | 2.02x | 2.65x |
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 | XELXcel Energy Inc. | WECWEC Energy Group,… |
|---|---|---|
| YTD ReturnYear-to-date | +11.6% | +10.7% |
| 1-Year ReturnPast 12 months | +18.8% | +13.0% |
| 3-Year ReturnCumulative with dividends | +39.2% | +43.4% |
| 5-Year ReturnCumulative with dividends | +58.4% | +60.5% |
| 10-Year ReturnCumulative with dividends | +156.3% | +155.9% |
| CAGR (3Y)Annualised 3-year return | +11.7% | +12.8% |
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 | XELXcel Energy Inc. | WECWEC Energy Group,… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.19x | 0.09x |
| 52-Week HighHighest price in past year | $84.23 | $118.19 |
| 52-Week LowLowest price in past year | $65.21 | $100.61 |
| % of 52W HighCurrent price vs 52-week peak | +99.0% | +99.0% |
| RSI (14)Momentum oscillator 0–100 | 71.6 | 65.4 |
| Avg Volume (50D)Average daily shares traded | 4.5M | 1.9M |
Analyst Outlook
Wall Street rates XEL as "Buy" and WEC as "Hold". 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 | XELXcel Energy Inc. | WECWEC Energy Group,… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $89.50 | $121.00 |
| # AnalystsCovering analysts | 26 | 34 |
| Dividend YieldAnnual dividend ÷ price | +2.5% | +3.0% |
| Dividend StreakConsecutive years of raises | 16 | 23 |
| Dividend / ShareAnnual DPS | $2.09 | $3.50 |
| 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 |
|---|---|---|---|
| Xcel Energy Inc. (XEL) | 100 | 119.54 | +19.5% |
| WEC Energy Group, I… (WEC) | 100 | 118.96 | +19.0% |
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 |
|---|---|---|---|
| Xcel Energy Inc. (XEL) | $11.1B | $13.4B | +21.0% |
| WEC Energy Group, I… (WEC) | $7.5B | $9.8B | +31.2% |
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 |
|---|---|---|---|
| Xcel Energy Inc. (XEL) | 10.1% | 14.4% | +42.4% |
| WEC Energy Group, I… (WEC) | 12.6% | 15.9% | +26.4% |
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 |
|---|---|---|---|
| Xcel Energy Inc. (XEL) | 21.4 | 19.6 | -8.4% |
| WEC Energy Group, I… (WEC) | 17.5 | 21.8 | +24.6% |
Xcel Energy Inc. has traded in a 19x–24x P/E range over 8 years; current trailing P/E is ~24x. WEC Energy Group, Inc. has traded in a 18x–26x P/E range over 9 years; current trailing P/E is ~24x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Xcel Energy Inc. (XEL) | 2.21 | 3.44 | +55.7% |
| WEC Energy Group, I… (WEC) | 2.96 | 4.83 | +63.2% |
WEC Energy Group, Inc.'s EPS grew from $2.96 (2016) to $4.83 (2025) — a 6% CAGR.
Chart 6Free Cash Flow — 5 Years
Xcel Energy Inc. generated $-3B FCF in 2024 (-33% vs 2021). WEC Energy Group, Inc. generated $-1B FCF in 2025 (-363% vs 2021).
XEL vs WEC: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is XEL or WEC 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 — XEL or WEC?
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 — XEL or WEC?
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 — XEL or WEC?
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 — XEL or WEC?
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 XEL or WEC 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 — XEL or WEC?
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 XEL or WEC 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 XEL and WEC?
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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