AVA vs MDU: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: AVA is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

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. AVA and MDU 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 AVA and MDU 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.

Avista Corporation is a regulated utility holding company headquartered in Spokane, Washington. Through Avista Utilities it generates, transmits, and distributes electricity and delivers natural gas to roughly 1.7 million customers across eastern Washington, northern Idaho, and parts of Oregon, and through Alaska Electric Light and Power (AEL&P) it serves Juneau, Alaska. Its earnings come almost entirely from monopoly regulated operations, where state utility commissions set the rates and allowed returns, making revenue and profit relatively predictable but capped by the regulatory framework.

Full AVA guide

MDU Resources Group runs three regulated businesses out of Bismarck, North Dakota. Montana-Dakota Utilities provides electric service across the Northern Plains; Montana-Dakota, Cascade Natural Gas and Intermountain Gas distribute natural gas across the Pacific Northwest and Midwest; and WBI Energy operates a natural gas transmission and storage network of more than 3,800 miles. Together those serve roughly 1.2 million customers. The company that carried this ticker a few years ago looked nothing like this: MDU separated Knife River Corporation (construction materials and aggregates) in May 2023 and Everus Construction Group (specialty contracting) in October 2024, which is why trailing revenue of roughly $1.8 billion sits well below the multi-billion figures in older reference data. MDU is now a member of the S&P SmallCap 600 rather than an industrial conglomerate.

Full MDU guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• AVA drivers: Rate base and capital plan; Regulated earnings and dividend.
• MDU drivers: Rate base growth and a dense rate-case calendar; The proposed Bakken East Pipeline.

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: Avista is a small-cap utility with concentrated exposure to Pacific Northwest regulation, so an unfavorable rate-case outcome can directly compress earnings. For MDU, financing costs are already visible in the numbers: second-quarter interest expense rose to $31.5 million from $25.4 million a year earlier, and long-term debt grew to roughly $2.6 billion from about $2.0 billion, while share count moved from about 204 million to 210 million, so both debt and equity issuance are diluting the benefit of new investment.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick AVA if you believe its drivers more; MDU if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the AVA and MDU guides.

AVA. Avista reported Q1 2026 net income of about $92 million ($1.11 per diluted share) on roughly $570 million of quarterly revenue, up from $0.98 a year earlier. On a trailing basis revenue is around $1.96 billion. At a share price implying a mid-teens P/E on guided earnings, AVA tends to trade at a modest discount to larger utility peers, reflecting its small size and Pacific Northwest wildfire exposure.

MDU. Second-quarter 2026 net income came in at $21.3 million, up 55.5% from $13.7 million a year earlier, on operating revenue of $375.2 million. Trailing revenue of roughly $1.81 billion reflects the post-spin perimeter only, so comparisons against pre-2023 figures that included Knife River and Everus are not meaningful. At about 22 times trailing earnings with a 6% to 8% long-term growth objective and a payout near 60% of earnings, MDU trades in the range of regulated utility peers rather than at a discount, and book value per share of roughly $13.90 puts the stock near 1.5 times book.

Headline figures (approximate, July 2026): AVA shows revenue (ttm) ~$1.96B, market cap ~$3.4B, 2026 utility eps guidance ~$2.52-$2.72, q1 2026 diluted eps (gaap) ~$1.11; MDU shows revenue (ttm) ~$1.81B, net income (ttm) ~$197M, diluted eps (ttm) ~$0.95, with 2026 guidance reaffirmed at $0.93 to $1.00, market cap ~$4.3B (~$20.55 per share on ~210M shares).

AVA and MDU 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 AVA and MDU exposure against your real portfolio. It is not an investment adviser.