In the regulated electric utility sector, Consolidated Edison, Inc. (ED) and FirstEnergy Corp. (FE) stand out as key players with significant market presence. Both companies serve millions of customers across overlapping regions in the United States and pursue innovation through diversified energy portfolios and infrastructure investments. This article will explore their strengths and risks, helping you decide which utility stock aligns best with your investment goals in 2026.
Table of contents
Companies Overview
I will begin the comparison between Consolidated Edison, Inc. and FirstEnergy Corp. by providing an overview of these two companies and their main differences.
Consolidated Edison, Inc. Overview
Consolidated Edison, Inc. operates primarily in the regulated electric, gas, and steam delivery sectors in the U.S. It serves about 3.5M electric customers in New York City and Westchester County, alongside gas and steam services to smaller customer bases. The company also develops renewable energy projects and invests in electric and gas transmission infrastructure, positioning itself as a key utility provider in a densely populated metropolitan area.
FirstEnergy Corp. Overview
FirstEnergy Corp. generates, transmits, and distributes electricity through coal, nuclear, hydroelectric, natural gas, wind, and solar facilities across six U.S. states. It serves around 6M customers and operates extensive transmission and distribution networks. The company’s diversified power generation mix and broad geographic footprint underpin its role as a major player in the regulated electric utility sector in the Midwest and Mid-Atlantic regions.
Key similarities and differences
Both companies operate in the regulated electric utility industry, serving millions of customers with extensive transmission and distribution networks. Consolidated Edison focuses more on electric, gas, and steam delivery in a dense urban market, while FirstEnergy emphasizes a diversified generation portfolio including renewable and fossil fuels across multiple states. Their business models differ in scale, geographic scope, and energy source diversification, reflecting distinct strategic approaches within the utilities sector.
Income Statement Comparison
This table provides a side-by-side comparison of key income statement metrics for Consolidated Edison, Inc. and FirstEnergy Corp. for the fiscal year 2024.
| Metric | Consolidated Edison, Inc. (ED) | FirstEnergy Corp. (FE) |
|---|---|---|
| Market Cap | 35.8B | 25.8B |
| Revenue | 15.3B | 13.5B |
| EBITDA | 5.48B | 4.10B |
| EBIT | 3.33B | 2.52B |
| Net Income | 1.82B | 978M |
| EPS | 5.26 | 1.70 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Consolidated Edison, Inc.
Consolidated Edison’s revenue grew steadily over 2020-2024, rising 24.65% overall with a 4.16% increase in the latest year. Net income showed stronger growth, up 65.3% over the period but declined 27.32% in 2024. Margins mostly improved, with a favorable gross margin near 64% and net margin close to 12%, though the latest year saw EBIT and net margin weaken.
FirstEnergy Corp.
FirstEnergy’s revenue also increased steadily, up 24.86% across five years and 4.68% in 2024. However, net income declined by 9.36% over the period and dropped 11.46% in the most recent year. Margins were mixed, with a higher gross margin of 67.5% but a lower net margin of 7.26%. EBIT margin remained favorable but slightly lower than Consolidated Edison’s.
Which one has the stronger fundamentals?
Consolidated Edison exhibits stronger fundamentals with overall favorable growth in revenue, net income, and margins, despite some recent margin pressure. FirstEnergy’s revenue growth is stable, but its declining net income and net margin over the period indicate more challenges. Consolidated Edison’s higher and improving margins provide a more robust income profile.
Financial Ratios Comparison
This table presents a side-by-side comparison of key financial ratios for Consolidated Edison, Inc. (ED) and FirstEnergy Corp. (FE) based on their most recent fiscal year 2024 data.
| Ratios | Consolidated Edison, Inc. (ED) | FirstEnergy Corp. (FE) |
|---|---|---|
| ROE | 8.29% | 7.85% |
| ROIC | 3.48% | 3.66% |
| P/E | 16.96 | 23.39 |
| P/B | 1.41 | 1.84 |
| Current Ratio | 1.04 | 0.56 |
| Quick Ratio | 0.96 | 0.45 |
| D/E (Debt-to-Equity) | 1.27 | 1.95 |
| Debt-to-Assets | 39.4% | 46.6% |
| Interest Coverage | 2.30 | 2.35 |
| Asset Turnover | 0.22 | 0.26 |
| Fixed Asset Turnover | 0.29 | 0.33 |
| Payout ratio | 60.4% | 99.2% |
| Dividend yield | 3.56% | 4.24% |
Interpretation of the Ratios
Consolidated Edison, Inc.
Consolidated Edison shows a mix of strengths and weaknesses in its 2024 ratios. The net margin and dividend yield are favorable, indicating solid profitability and shareholder returns. However, return on equity, return on invested capital, and asset turnover ratios are unfavorable, raising concerns about efficiency and capital use. The company pays dividends with a 3.56% yield, supported by moderate payout ratios, but high debt levels and low cash flow coverage may pose risks.
FirstEnergy Corp.
FirstEnergy’s 2024 ratios reveal some challenges, with unfavorable current and quick ratios and high debt-to-equity, signaling liquidity and leverage concerns. Net margin and dividend yield are neutral to favorable, suggesting some income stability and shareholder returns with a 4.24% yield. Return on equity and capital employed are below ideal levels, reflecting operational efficiency issues. The dividend appears sustainable but should be monitored given cash flow constraints.
Which one has the best ratios?
Both companies present slightly unfavorable overall ratio evaluations, with Consolidated Edison having a higher proportion of favorable metrics like net margin and dividend yield. FirstEnergy struggles more with liquidity and leverage, but offers a higher dividend yield. The decision depends on weighing profitability and capital efficiency against liquidity and debt concerns for each firm.
Strategic Positioning
This section compares the strategic positioning of Consolidated Edison, Inc. (ED) and FirstEnergy Corp. (FE) regarding market position, key segments, and exposure to technological disruption:
Consolidated Edison, Inc. (ED)
- Strong regional presence with 3.5M electric customers in NYC area; faces regulated electric industry pressure.
- Key segments include electricity delivery, gas, steam, and renewable projects, driven by regulated utility services.
- Limited direct mention of technological disruption exposure; invests in renewable and energy infrastructure projects.
FirstEnergy Corp. (FE)
- Serves 6M customers across multiple states; operates in regulated electric sector with broad regional footprint.
- Focuses on regulated distribution and transmission; diverse generation mix including coal, nuclear, and renewables.
- Operates diverse generation assets and transmission lines; no explicit disruption risks detailed.
Consolidated Edison, Inc. vs FirstEnergy Corp. Positioning
ED has a concentrated market focus in New York with multiple utility services including gas and steam, while FE operates a more diversified regional utility with varied generation assets. ED’s approach centers on regulated delivery, FE blends regulated transmission with diverse generation methods.
Which has the best competitive advantage?
Both companies show very unfavorable MOATs with declining ROICs below WACC, indicating value destruction and decreasing profitability, thus neither currently demonstrates a strong competitive advantage based on MOAT evaluation.
Stock Comparison
The stock price charts of Consolidated Edison, Inc. (ED) and FirstEnergy Corp. (FE) over the past year reveal notable bullish trends with decelerating momentum, highlighting distinct price ranges and trading volume dynamics.
Trend Analysis
Consolidated Edison, Inc. (ED) exhibited a bullish trend over the past 12 months with a 13.62% price increase, showing deceleration in momentum and a price range between 87.01 and 112.1. Recent weeks saw a slight neutral trend with a -0.83% change.
FirstEnergy Corp. (FE) showed a stronger bullish trend over the same period with a 19.42% price increase and decelerating acceleration. The stock traded between 36.5 and 47.72, but recently entered a bearish phase with a -4.27% decline.
Comparing both, FE delivered the highest market performance over the past year with a 19.42% gain, outperforming ED’s 13.62%, despite FE’s recent short-term weakness.
Target Prices
Analysts present a clear target price consensus for Consolidated Edison, Inc. and FirstEnergy Corp.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Consolidated Edison, Inc. | 106 | 86 | 99.86 |
| FirstEnergy Corp. | 54 | 46 | 49.29 |
The target consensus for Consolidated Edison slightly exceeds its current price of 99.21 USD, suggesting moderate upside potential. FirstEnergy’s consensus target also lies above its current price of 44.65 USD, indicating expected growth according to analysts.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Consolidated Edison, Inc. (ED) and FirstEnergy Corp. (FE):
Rating Comparison
ED Rating
- Rating: B- indicating a very favorable overall view.
- Discounted Cash Flow Score: 1, considered very unfavorable for valuation.
- ROE Score: 3, moderate efficiency in generating profit from equity.
- ROA Score: 3, moderate asset utilization to generate earnings.
- Debt To Equity Score: 2, moderate financial risk with balanced leverage.
- Overall Score: 2, moderate overall financial standing.
FE Rating
- Rating: B indicating a very favorable overall view.
- Discounted Cash Flow Score: 4, favorable for valuation based on cash flows.
- ROE Score: 4, favorable efficiency in generating profit from equity.
- ROA Score: 3, moderate asset utilization to generate earnings.
- Debt To Equity Score: 1, very unfavorable, indicating higher financial risk.
- Overall Score: 3, moderate overall financial standing.
Which one is the best rated?
Based strictly on the provided data, FE holds a higher rating (B vs. B-) and scores better in discounted cash flow and return on equity. However, ED has a stronger debt-to-equity score. Overall, FE is rated more favorably in key profitability and valuation metrics.
Scores Comparison
Here is a comparison of the financial health scores for Consolidated Edison, Inc. and FirstEnergy Corp.:
Consolidated Edison, Inc. Scores
- Altman Z-Score: 1.19, in distress zone, indicating high bankruptcy risk.
- Piotroski Score: 7, rated strong financial health.
FirstEnergy Corp. Scores
- Altman Z-Score: 0.78, also in distress zone, indicating high bankruptcy risk.
- Piotroski Score: 6, rated average financial health.
Which company has the best scores?
Consolidated Edison, Inc. has a higher Piotroski Score of 7 compared to FirstEnergy’s 6, indicating stronger financial health. Both companies are in the Altman Z-Score distress zone, but Consolidated Edison’s score is slightly higher, suggesting marginally lower bankruptcy risk.
Grades Comparison
Here is a comparison of the recent grades and ratings for Consolidated Edison, Inc. and FirstEnergy Corp.:
Consolidated Edison, Inc. Grades
The following table summarizes recent grades from reputable grading companies for Consolidated Edison, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Neutral | 2026-01-07 |
| UBS | Maintain | Neutral | 2025-12-17 |
| Keybanc | Maintain | Underweight | 2025-12-12 |
| JP Morgan | Maintain | Underweight | 2025-12-12 |
| Barclays | Maintain | Underweight | 2025-11-10 |
| Barclays | Maintain | Underweight | 2025-10-22 |
| Morgan Stanley | Maintain | Underweight | 2025-10-22 |
| Barclays | Maintain | Underweight | 2025-10-21 |
| Keybanc | Maintain | Underweight | 2025-10-15 |
| Morgan Stanley | Maintain | Underweight | 2025-09-25 |
Consolidated Edison, Inc. consistently received Underweight and Neutral grades, indicating cautious sentiment among analysts.
FirstEnergy Corp. Grades
The following table presents recent grades from reputable grading companies for FirstEnergy Corp.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Neutral | 2025-12-17 |
| Mizuho | Maintain | Neutral | 2025-10-24 |
| Scotiabank | Maintain | Sector Outperform | 2025-10-24 |
| UBS | Maintain | Neutral | 2025-10-24 |
| Morgan Stanley | Maintain | Overweight | 2025-10-21 |
| Jefferies | Maintain | Hold | 2025-10-21 |
| Keybanc | Downgrade | Sector Weight | 2025-10-15 |
| Scotiabank | Maintain | Sector Outperform | 2025-10-06 |
| Morgan Stanley | Maintain | Overweight | 2025-09-25 |
| Barclays | Upgrade | Overweight | 2025-08-25 |
FirstEnergy Corp. shows a more positive pattern with multiple Overweight and Sector Outperform ratings, reflecting a generally favorable analyst outlook.
Which company has the best grades?
FirstEnergy Corp. has received better grades overall, with several Overweight and Sector Outperform ratings compared to Consolidated Edison, Inc.’s predominantly Underweight and Neutral scores. This difference may influence investors’ confidence and portfolio positioning due to perceived relative strength.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses between Consolidated Edison, Inc. (ED) and FirstEnergy Corp. (FE) based on their latest financial data and business segments.
| Criterion | Consolidated Edison, Inc. (ED) | FirstEnergy Corp. (FE) |
|---|---|---|
| Diversification | Diversified revenue streams including Electricity (10.8B), Oil & Gas Purchased (3.1B), Steam (569M) | Primarily focused on Regulated Distribution (6.9B) and Transmission (1.8B); less diversified |
| Profitability | Net margin 11.93% (favorable); ROIC 3.48% (unfavorable); declining profitability trend | Net margin 7.26% (neutral); ROIC 3.66% (unfavorable); declining profitability trend |
| Innovation | Limited evidence of innovation; traditional utility business model | Limited innovation focus; mainly regulated utility services |
| Global presence | Mainly US-focused utility company | US-centric with regulated operations |
| Market Share | Strong presence in electricity distribution and related services | Large market share in regulated distribution and transmission sectors |
Key takeaway: Both companies exhibit challenges with declining ROIC and profitability pressure, but ED benefits from more diversified revenue segments, while FE is more concentrated in regulated utility services. Investors should weigh diversification against operational risks when considering these utilities.
Risk Analysis
Below is a comparative table of key risks for Consolidated Edison, Inc. (ED) and FirstEnergy Corp. (FE) as of 2024.
| Metric | Consolidated Edison, Inc. (ED) | FirstEnergy Corp. (FE) |
|---|---|---|
| Market Risk | Low beta (0.38) suggests lower volatility | Moderate beta (0.63) indicates moderate volatility |
| Debt Level | Debt-to-equity 1.27 (unfavorable) | Higher debt-to-equity 1.95 (unfavorable) |
| Regulatory Risk | High, as a regulated utility in NYC area | High, operates in multiple states with diverse regulations |
| Operational Risk | Aging infrastructure, low asset turnover | Similar aging assets, slightly higher turnover |
| Environmental Risk | Transition to renewables underway but slow | Mix of coal, nuclear, and renewables adds complexity |
| Geopolitical Risk | Low, primarily US markets | Low, but exposure to multiple states may add complexity |
The most significant risks for both companies lie in regulatory challenges and high debt levels. FirstEnergy’s heavier debt load and reliance on fossil fuels increase its financial and environmental risk. Consolidated Edison’s low beta indicates less market volatility, but its aging infrastructure and regulatory environment remain critical concerns. Both show distress zone Altman Z-Scores, highlighting potential bankruptcy risk that investors should monitor closely.
Which Stock to Choose?
Consolidated Edison, Inc. (ED) shows a favorable income statement with 57% of key metrics positive, including a 24.65% revenue growth over five years, but suffers from a very unfavorable MOAT rating due to declining ROIC below WACC and a slightly unfavorable financial ratios profile. Its rating is very favorable (B-) despite moderate overall scores, reflecting mixed financial health and profitability concerns.
FirstEnergy Corp. (FE) has a slightly unfavorable global income statement due to negative net income growth over five years but a favorable gross margin and EBIT margin. It also faces a very unfavorable MOAT rating with declining ROIC below WACC and unfavorable financial ratios overall. Its rating is very favorable (B) with moderate overall scores but weaker debt metrics and liquidity ratios.
Investors focused on growth and income quality may find Consolidated Edison’s stronger income statement and dividend yield appealing, while those prioritizing valuation and cash flow metrics might see FirstEnergy as a potential option despite its challenges. Both stocks show signs of value destruction, suggesting caution for risk-averse profiles.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Consolidated Edison, Inc. and FirstEnergy Corp. to enhance your investment decisions:
