In the competitive utilities sector, Exelon Corporation (EXC) and FirstEnergy Corp. (FE) stand out as leading players in regulated electric services across the United States. Both companies operate diverse energy portfolios, including nuclear, fossil, and renewables, targeting overlapping markets with distinct innovation strategies. This analysis will help investors navigate their strengths and risks to determine which stock presents the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Exelon Corporation and FirstEnergy Corp. by providing an overview of these two companies and their main differences.
Exelon Corporation Overview
Exelon Corporation is a utility services holding company engaged in energy generation, delivery, and marketing across the US and Canada. It owns diverse power generation assets including nuclear, fossil, wind, hydroelectric, biomass, and solar facilities. Exelon also offers electricity and natural gas sales, along with support services like legal, IT, and asset management. The company is headquartered in Chicago and employs about 20,000 people.
FirstEnergy Corp. Overview
FirstEnergy Corp. generates, transmits, and distributes electricity primarily in the United States through its regulated distribution and transmission segments. It operates a mix of coal, nuclear, hydroelectric, natural gas, wind, and solar power plants, managing extensive transmission and distribution networks. Serving around 6 million customers, the company is based in Akron, Ohio, with a workforce of approximately 12,300 employees.
Key similarities and differences
Both Exelon and FirstEnergy operate in the regulated electric utility industry, managing a diverse portfolio of power generation assets and serving a broad customer base. While Exelon has a larger workforce and a presence in both the US and Canada, FirstEnergy focuses primarily on US regional markets with substantial transmission infrastructure. Both companies emphasize regulated electricity services but differ in scale and geographic reach.
Income Statement Comparison
The table below compares key income statement metrics for Exelon Corporation and FirstEnergy Corp. for the fiscal year 2024, providing a snapshot of their financial performance.
| Metric | Exelon Corporation | FirstEnergy Corp. |
|---|---|---|
| Market Cap | 43.8B | 25.8B |
| Revenue | 23.0B | 13.5B |
| EBITDA | 8.18B | 4.10B |
| EBIT | 4.58B | 2.52B |
| Net Income | 2.46B | 978M |
| EPS | 2.45 | 1.7 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Exelon Corporation
Exelon’s revenue displayed volatility, declining overall by 30.3% from 2020 to 2024 but rising 6% in the last year. Net income grew favorably by 25.3% over the period, reflecting improved net margins by 79.8%. In 2024, revenue growth slowed slightly, with a small net margin contraction of 0.3%, though EPS increased by 4.7%, highlighting operational efficiency.
FirstEnergy Corp.
FirstEnergy showed consistent revenue growth of 24.9% over five years, with a moderate 4.7% increase in 2024. However, net income fell by 9.4% overall, and net margin declined by 27.4%, signaling profitability pressures. The latest year featured a 15.2% drop in net margin and an 11.5% EPS decline, despite a 10.6% gross profit increase, indicating rising operating expenses.
Which one has the stronger fundamentals?
Exelon’s income statement reflects stronger fundamentals, with a favorable global opinion supported by improving net income and margins despite revenue fluctuations. Conversely, FirstEnergy’s income trends reveal less stability, with unfavorable profit and margin declines over the period. Exelon’s more balanced growth and margin management position it with a more resilient income profile.
Financial Ratios Comparison
Below is a comparison of key financial ratios for Exelon Corporation (EXC) and FirstEnergy Corp. (FE) based on the latest fiscal year 2024 data.
| Ratios | Exelon Corporation (EXC) | FirstEnergy Corp. (FE) |
|---|---|---|
| ROE | 9.14% | 7.85% |
| ROIC | 3.93% | 3.66% |
| P/E | 15.35 | 23.39 |
| P/B | 1.40 | 1.84 |
| Current Ratio | 0.87 | 0.56 |
| Quick Ratio | 0.78 | 0.45 |
| D/E (Debt to Equity) | 1.73 | 1.95 |
| Debt-to-Assets | 43.3% | 46.6% |
| Interest Coverage | 2.26 | 2.35 |
| Asset Turnover | 0.21 | 0.26 |
| Fixed Asset Turnover | 0.29 | 0.33 |
| Payout ratio | 61.95% | 99.18% |
| Dividend yield | 4.04% | 4.24% |
Interpretation of the Ratios
Exelon Corporation
Exelon’s ratios show strengths in net margin (10.68%, favorable) and dividend yield (4.04%, favorable), supported by a reasonable payout. However, concerns arise with its low current (0.87) and quick ratios (0.78), high debt-to-equity (1.73), and weak asset turnover (0.21). The firm maintains a stable dividend but faces risks from leverage and liquidity pressures.
FirstEnergy Corp.
FirstEnergy’s ratios reveal a moderate net margin (7.26%, neutral) and dividend yield (4.24%, favorable), implying steady shareholder returns. Yet, liquidity is weak with a current ratio of 0.56 and quick ratio of 0.45. Debt levels remain high (debt-to-equity 1.95), and asset turnover ratios are low, suggesting operational efficiency challenges despite a sustainable dividend policy.
Which one has the best ratios?
Both companies exhibit similar challenges, notably in liquidity and asset efficiency. Exelon has a slightly better net margin and more favorable dividend yield but higher leverage concerns persist. FirstEnergy shows lower liquidity and mixed neutral ratios but slightly better interest coverage. Overall, neither company stands out decisively; both have slightly unfavorable ratio profiles.
Strategic Positioning
This section compares the strategic positioning of Exelon Corporation and FirstEnergy Corp. across Market position, Key segments, and Exposure to technological disruption:
Exelon Corporation
- Large market cap of 43.8B with moderate beta, facing regulated electric competition.
- Diverse revenue from multiple electric utilities and energy products including nuclear, wind, solar, and gas.
- Owns varied generation assets including nuclear, fossil, renewables, and offers comprehensive energy services.
FirstEnergy Corp.
- Smaller market cap of 25.8B and moderate beta in regulated electric sector.
- Revenue mainly from regulated distribution and transmission segments.
- Operates coal, nuclear, hydro, natural gas, wind, and solar plants with extensive transmission lines.
Exelon Corporation vs FirstEnergy Corp. Positioning
Exelon’s strategy is diversified across numerous utilities and energy types, offering broad business drivers, while FirstEnergy focuses on regulated distribution and transmission. Exelon’s varied segments provide multiple revenue streams, whereas FirstEnergy has a more concentrated operational footprint.
Which has the best competitive advantage?
Both companies are shedding value as their ROIC is below WACC; however, Exelon shows a growing ROIC trend, indicating improving profitability, while FirstEnergy’s declining ROIC reflects worsening value creation and weaker competitive moat.
Stock Comparison
The stock prices of Exelon Corporation and FirstEnergy Corp. have shown notable bullish trends over the past 12 months, with both experiencing deceleration in momentum and recent declines in price.
Trend Analysis
Exelon Corporation’s stock price rose 24.03% over the past year, indicating a bullish trend with decelerating momentum and notable volatility at a 3.75 std deviation. The recent period shows a 9.87% decline with a slight negative slope.
FirstEnergy Corp. saw a 19.42% increase over the same period, also bullish with deceleration and lower volatility at 2.64 std deviation. Its recent trend weakened by 4.27%, reflecting a mild downward slope.
Comparing both, Exelon delivered the highest market performance with a 24.03% gain versus FirstEnergy’s 19.42%, despite both showing recent price declines.
Target Prices
The target price consensus for Exelon Corporation and FirstEnergy Corp. indicates moderate upside potential according to recent analyst evaluations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Exelon Corporation | 57 | 39 | 50.86 |
| FirstEnergy Corp. | 54 | 46 | 49.29 |
Analysts expect Exelon to rise from its current price of 43.3 USD to around 50.86 USD, while FirstEnergy’s target consensus of 49.29 USD suggests modest growth from its current 44.65 USD stock price.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for Exelon Corporation and FirstEnergy Corp.:
Rating Comparison
EXC Rating
- Rating: B, considered very favorable by analysts.
- Discounted Cash Flow Score: Moderate at 3, indicating fair value.
- ROE Score: Moderate at 3, reflecting average profit efficiency.
- ROA Score: Moderate at 3, average asset utilization.
- Debt To Equity Score: Moderate at 2, indicating balanced leverage.
- Overall Score: Moderate at 3, a balanced financial standing.
FE Rating
- Rating: B, also considered very favorable by analysts.
- Discounted Cash Flow Score: Favorable at 4, suggesting better valuation.
- ROE Score: Favorable at 4, showing stronger profit generation.
- ROA Score: Moderate at 3, similar asset utilization.
- Debt To Equity Score: Very unfavorable at 1, indicating higher financial risk.
- Overall Score: Moderate at 3, comparable overall assessment.
Which one is the best rated?
Both companies share the same overall rating of B and an overall score of 3, reflecting moderate financial health. FE shows stronger discounted cash flow and ROE scores but has a weaker debt-to-equity score, indicating higher financial risk compared to EXC.
Scores Comparison
Here is a comparison of the financial health scores for Exelon Corporation and FirstEnergy Corp.:
EXC Scores
- Altman Z-Score: 0.78, indicating distress zone risk.
- Piotroski Score: 5, reflecting average financial strength.
FE Scores
- Altman Z-Score: 0.78, indicating distress zone risk.
- Piotroski Score: 6, reflecting average financial strength.
Which company has the best scores?
Both EXC and FE are in the distress zone based on their Altman Z-Scores, showing high bankruptcy risk. FE has a slightly better Piotroski Score of 6 versus EXC’s 5, indicating marginally stronger financial health.
Grades Comparison
The following presents the recent grading data from recognized financial institutions for Exelon Corporation and FirstEnergy Corp.:
Exelon Corporation Grades
This table summarizes recent grades and analyst actions for Exelon Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Neutral | 2025-12-17 |
| JP Morgan | Maintain | Neutral | 2025-12-12 |
| Morgan Stanley | Maintain | Equal Weight | 2025-10-22 |
| Keybanc | Maintain | Underweight | 2025-10-15 |
| Jefferies | Maintain | Buy | 2025-10-15 |
| Barclays | Maintain | Overweight | 2025-10-14 |
| UBS | Maintain | Neutral | 2025-10-10 |
| Morgan Stanley | Maintain | Equal Weight | 2025-09-25 |
| Keybanc | Maintain | Underweight | 2025-07-16 |
| UBS | Maintain | Neutral | 2025-07-11 |
Exelon’s grades show a mixed but generally neutral to moderate stance, with a few buy and overweight ratings balanced by several underweight and equal weight opinions.
FirstEnergy Corp. Grades
This table summarizes recent grades and analyst actions 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 exhibits a more positive consensus with several overweight and sector outperform ratings, despite a recent downgrade by Keybanc.
Which company has the best grades?
Both companies hold a consensus “Hold” rating, but FirstEnergy has received more overweight and sector outperform grades compared to Exelon’s mix of neutral, underweight, and buy ratings. This suggests a relatively more optimistic outlook from analysts for FirstEnergy, which could affect investor sentiment and portfolio positioning accordingly.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Exelon Corporation (EXC) and FirstEnergy Corp. (FE) based on the most recent financial and operational data.
| Criterion | Exelon Corporation (EXC) | FirstEnergy Corp. (FE) |
|---|---|---|
| Diversification | Broad revenue streams across multiple regulated utilities, e.g., Commonwealth Edison Co (~8.2B USD in 2024) and Pepco Holdings (~6.4B USD) | Predominantly regulated distribution (~6.9B USD) and transmission (~1.8B USD) segments with less diversification |
| Profitability | Net margin favorable at 10.68%; ROIC low at 3.93% but improving; currently slightly unfavorable moat due to ROIC < WACC | Net margin neutral at 7.26%; ROIC lower at 3.66% and declining; very unfavorable moat with decreasing profitability |
| Innovation | Moderate innovation capacity indicated by improving ROIC trend despite value destruction | Limited innovation impact; declining ROIC suggests challenges in competitive advantage |
| Global presence | Concentrated mainly in U.S. regulated utilities; limited global exposure | Primarily U.S.-focused with regulated energy services; no significant global presence |
| Market Share | Strong presence in several large regional utilities with stable revenue growth | Significant market share in regulated distribution and transmission but facing profitability pressures |
Key takeaways: Exelon demonstrates better diversification and improving profitability trends despite current value destruction, while FirstEnergy struggles with declining profitability and less diversification. Both companies present some financial weaknesses, indicating cautious investment consideration.
Risk Analysis
Below is a comparative table summarizing key risks for Exelon Corporation (EXC) and FirstEnergy Corp. (FE) based on the most recent 2024 data:
| Metric | Exelon Corporation (EXC) | FirstEnergy Corp. (FE) |
|---|---|---|
| Market Risk | Moderate beta 0.56; lower volatility than market | Moderate beta 0.63; slightly higher volatility |
| Debt level | Debt-to-Equity 1.73 (unfavorable); Debt-to-Assets 43.3% (neutral) | Debt-to-Equity 1.95 (unfavorable); Debt-to-Assets 46.6% (neutral) |
| Regulatory Risk | High exposure due to regulated electric utility sector | High exposure; operates in multiple regulated states |
| Operational Risk | Diverse generation mix; risk from nuclear and fossil assets | Similar mix; large transmission network increases operational complexity |
| Environmental Risk | Transition risks from fossil fuels; renewable investments ongoing | Similar environmental challenges; coal-fired plants under scrutiny |
| Geopolitical Risk | Limited; primarily US and Canada operations | Limited; focus on US markets |
Synthesis: Both companies face significant leverage concerns with debt-to-equity ratios near 2, raising financial risk. Regulatory and environmental risks remain impactful due to reliance on fossil and nuclear energy amid shifting policies. Operational risks stem from complex infrastructure. Market risk is moderate due to utility sector stability. The Altman Z-scores place both firms in distress zones, highlighting caution.
Which Stock to Choose?
Exelon Corporation (EXC) shows favorable income growth overall with a 25.32% net income increase over 2020-2024 and a 10.68% net margin rated favorable. However, some financial ratios such as ROE and ROIC are unfavorable, with a slightly unfavorable global ratio opinion. Its debt level and liquidity ratios remain concerns, though the company holds a very favorable B rating.
FirstEnergy Corp. (FE) exhibits a favorable gross margin of 67.52% but less encouraging income growth, with a negative net income growth of -9.36% over the same period. Its global income statement evaluation is unfavorable, and financial ratios also reflect a slightly unfavorable stance, with notably high debt-to-equity and lower liquidity ratios. Despite this, FE holds a very favorable B rating as well.
For investors, EXC might appear more favorable for those prioritizing income growth and a stronger overall income statement, despite some ratio weaknesses. Conversely, FE could be seen as more suitable for those willing to tolerate value destruction and declining profitability, possibly favoring stability in dividend yield. The choice could depend on whether the investor is growth-oriented or accepts higher financial risk.
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 Exelon Corporation and FirstEnergy Corp. to enhance your investment decisions:
