FTS vs XEL: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of October 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: XEL 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. FTS and XEL 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 FTS and XEL 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.

Fortis Inc. is a St. John's, Newfoundland-based utility holding company that owns 10 regulated electric and gas businesses serving roughly 3.5 million customers across Canada, the United States, and the Caribbean. Its largest platforms include ITC Holdings (U.S. electricity transmission, ~80% owned), UNS Energy (Tucson Electric Power and other Arizona utilities), Central Hudson in New York, and FortisBC in British Columbia. About 99% of assets are regulated, which means earnings come largely from rate-base returns approved by regulators rather than from commodity prices or competition, giving the business unusually predictable cash flows.

Full FTS guide

Xcel Energy (XEL) is a large regulated electric and natural gas utility serving roughly 3.9 million electric and 2.1 million natural gas customers across eight Western and Midwestern states, including Colorado, Minnesota, Texas, and the Dakotas. Its earnings come mainly from regulated operations, where state commissions set the rates it can charge and allow a return on the capital it invests in poles, wires, power plants, and pipelines. That rate-regulated model produces relatively stable, predictable cash flows and has supported dividend increases for more than two decades. Xcel is also one of the largest operators of wind and renewable generation in the United States and has publicly targeted a shift toward carbon-free electricity, funded by a large multi-year capital-investment plan that expands and modernizes its grid. Rising electricity demand from data centers, electrification, and economic growth in its service territories supports that spending. The main overhang is wildfire liability: like other Western utilities, Xcel faces the risk that its equipment could be linked to fires, and it has recognized costs tied to the Smokehouse Creek fire in Texas. Over the trailing twelve months Xcel generated about $14.6 billion of revenue and $2.2 billion of net income. Second-quarter 2026 EPS of $0.93 beat the roughly $0.79 consensus, and the company reports third-quarter results on October 29, 2026, where analysts expect about $1.37 per share on $4.28 billion of revenue. In early October 2026 it agreed to sell its small Michigan gas and electric operations (about 6,000 gas and 9,000 electric customers) to Semco Energy Gas Company and Upper Peninsula Power Company, with closing expected in 2027 pending approvals. As of October 16, 2026 the stock traded near $76, up about 2% year to date and down about 6% over the past year. Headquartered in Minneapolis, Minnesota, Xcel is widely held as a defensive, income-oriented, rate-sensitive utility.

Full XEL guide

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

• FTS drivers: Rate-base growth engine; Long dividend-growth record.
• XEL drivers: Regulated utility model and stable cash flows; Renewables leadership and grid investment.

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: As a capital-intensive utility, Fortis carries substantial debt (about CAD 36 billion as of mid-2026) and is sensitive to interest rates; higher rates raise financing costs and make its dividend yield less attractive relative to bonds, which can pressure the share price. For XEL, xcel's most significant risk is wildfire liability: like other Western utilities, its equipment could be linked to fires, and it has recognized costs tied to the Smokehouse Creek fire in Texas, with related litigation outstanding.

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 FTS if you believe its drivers more; XEL 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 FTS and XEL guides.

FTS. Fortis trades at about 23 times trailing and 20 times forward earnings, with EV/EBITDA near 12x, still a premium utility multiple that prices in regulated, predictable cash flows and a five-decade dividend-growth record. Reported figures are in Canadian dollars; the NYSE price and market cap are in U.S. dollars. Consensus for the November 3 Q3 report is about $0.64 of EPS, and the valuation leaves limited room for multiple expansion, so returns lean on earnings and dividend growth rather than re-rating.

XEL. As of October 16, 2026 XEL traded near $76, about 20.6 times trailing and 16.8 times forward earnings, with a dividend yield near 3.2%. Xcel is valued like a regulated utility, so investors focus on its rate base, allowed returns, dividend and earnings-growth target (long described by the company as about 6-8% a year) rather than revenue growth, and the valuation stays sensitive to interest rates and wildfire headlines. Third-quarter results are due October 29, 2026, with consensus EPS near $1.37; figures are approximate and change over time, so verify current numbers before relying on them.

Headline figures (approximate, October 2026): FTS shows market cap ~$28B USD (NYSE price ~$55.47), revenue (ttm) ~CAD 12.4B (Q2 2026 up ~4% y/y), net income (ttm) ~CAD 1.7B, q2 2026 net earnings ~CAD 396M (EPS $0.56 vs $0.54 est.); XEL shows revenue (ttm) ~$14.6 billion, net income (ttm) ~$2.2 billion (net margin ~15%), eps (ttm / 2026 consensus) ~$3.69 GAAP / ~$4.12, p/e (trailing / forward) ~20.6x / ~16.8x.

FTS and XEL 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 FTS and XEL exposure against your real portfolio. It is not an investment adviser.