ABB vs FPS: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
ABB (ABB Ltd) and FPS (Forgent Power Solutions) share investment themes but are different businesses. The right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme.
Before you buy: how ABB and FPS affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ABB and FPS share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ABB and FPS exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does ABB Ltd (ABB) do?
ABB Ltd is a global technology company headquartered in Zurich, Switzerland, that builds the hardware and software behind electrification and automation. Its business spans low- and medium-voltage electrical products, switchgear and building systems (Electrification), electric motors, drives and traction (Motion), and control systems, measurement and industrial software (Process Automation). Historically it also ran a Robotics division, but in 2025 ABB agreed to divest that unit to SoftBank Group for an enterprise value of roughly $5.4 billion, moving the company to three reporting business areas. ABB reports in US dollars, sells into utilities, data centers, manufacturers, transport and infrastructure customers worldwide, and competes with the likes of Siemens, Schneider Electric and Rockwell Automation.
What does Forgent Power Solutions (FPS) do?
Forgent Power Solutions, founded in 2023 and based in Dayton, Minnesota, designs and manufactures electrical distribution equipment used in data centers, the power grid, and energy-intensive industrial facilities. Its catalog spans four product families: transformers (padmount, substation, PDU, VPI), switchgear (low and medium voltage, paralleling), automatic transfer switches, and prefabricated solutions such as eHouses and power skids, plus aftermarket services like testing, modernization, and commissioning. Roughly 91% of fiscal 2025 revenue came from engineered-to-order work (about 78% Custom Products and 13% Powertrain Solutions), which the company positions as a differentiator against larger, more standardized rivals. Data centers make up a large share of demand (about 42% of fiscal 2025 revenue and roughly 47% of the order pipeline), with the grid around 30%, so its growth is tightly linked to AI-driven capital spending and electrification.
ABB vs FPS: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- ABB drivers: Electrification and grid demand; Automation and energy-efficient motion.
- FPS drivers: Data-center and AI power demand; Record backlog and bookings.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: ABB is a cyclical industrial whose orders and revenue track global capital spending, so a slowdown in manufacturing, construction or utility investment would pressure growth. For FPS, forgent is a niche, newly public company competing against far larger and more diversified electrical-equipment makers, which S&P Global analysts have noted leaves it more exposed to economic volatility.
ABB or FPS: which should you pick?
ABB vs FPS: the full fundamentals
ABB. ABB posted a record 2025, with revenue up about 9% to roughly $33 billion, orders up about 17% near $37 billion, and net income up about 20% to around $4.7 billion. The stock trades at a premium, with a trailing P/E in the mid-30s and a forward multiple near 30, reflecting strong returns on capital (ROE near 29%) and secular demand. Figures are approximate and drawn from ABB's FY2025 disclosures and market data as of mid-2026.
FPS. Figures are approximate and tied to the asOf date; verify live numbers before acting. Forgent uses a fiscal year ending June 30, so its fiscal Q3 2026 covers the quarter ended March 31, 2026. Full-year fiscal 2026 guidance points to revenue of about $1.35 to $1.39 billion and adjusted EBITDA of roughly $310 to $320 million. The extremely high P/E reflects small current earnings against a large market cap, so the valuation leans on future growth rather than trailing profit.
Headline figures (approximate, JULY 2026): ABB shows revenue (fy2025) ~$33.2B, orders (fy2025) ~$36.8B, net income (fy2025) ~$4.7B, operational ebita margin ~19%; FPS shows revenue (fiscal q3 2026, quarter ended march 31) ~$379 million, up ~103% year over year, backlog / bookings ~$1.98 billion backlog, ~$867 million quarterly bookings, net income (fiscal q3 2026) ~$24 million, adjusted ebitda (fiscal q3 2026) ~$85 million.
The bottom line: ABB vs FPS
ABB and FPS are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ABB and FPS exposure against your real portfolio. It is not an investment adviser.
Wondering how ABB or FPS fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in ABB Ltd with AI
Connect the broker you already use and ask Walnut's AI how ABB fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between ABB and FPS?
+
ABB Ltd is a global technology company headquartered in Zurich, Switzerland, that builds the hardware and software behind electrification and automation. Forgent Power Solutions, founded in 2023 and based in Dayton, Minnesota, designs and manufactures electrical distribution equipment used in data centers, the power grid, and energy-intensive industrial facilities. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is ABB or FPS the better stock?
+
Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, ABB or FPS?
+
A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both ABB and FPS?
+
Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of ABB vs FPS?
+
ABB: ABB is a cyclical industrial whose orders and revenue track global capital spending, so a slowdown in manufacturing, construction or utility investment would pressure growth. As a Swiss company reporting in US dollars with sales across many currencies, results are exposed to foreign-exchange swings and to macro shocks in Europe, China and the Americas. The shares trade at a premium valuation that assumes continued margin strength and secular demand, leaving limited downside cushion if growth disappoints. Execution risk around the Robotics divestiture, supply-chain disruption, and intense competition from Siemens, Schneider Electric and others could all weigh on returns. Tariffs, geopolitical tension and project delays in large infrastructure and process customers add further uncertainty. FPS: Forgent is a niche, newly public company competing against far larger and more diversified electrical-equipment makers, which S&P Global analysts have noted leaves it more exposed to economic volatility. Heavy reliance on data-center demand ties its results to the AI capital-spending cycle, so a slowdown in hyperscaler or developer orders could hit bookings and backlog conversion quickly. The valuation is extreme, with a trailing P/E in the high hundreds, meaning the stock prices in years of continued rapid growth and leaves little room for disappointment. It also carries about $600 million of debt and depends on executing a large capacity expansion. Finally, its private-equity backer Neos Partners retains a substantial stake and has sold shares in secondary offerings, creating potential supply overhang on the stock.
Related comparisons
Browse all stock comparisons.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell ABB or FPS; figures are approximate and dated (as of August 2026). Verify current data before investing.