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EXC vs. ES: Which Utility Stock Offers Better Investment Potential?
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Key Takeaways
EXC and ES are expanding grid infrastructure to meet rising electricity and data-center demand.
EXC targets $41.7B in investments through 2029, while ES plans $26.5B through 2030.
ES offers a higher 4.83% dividend yield but trails Exelon in debt position and interest coverage.
Companies operating in the Zacks Utility - Electric Power industry enjoy a regulated framework that provides greater earnings visibility and supports long-term investment. Approved rates enable utilities to recover costs and earn returns on their capital investments. Reliable dividends strengthen the sector’s defensive profile, while expanding clean energy capacity helps meet growing power requirements.
U.S. electricity demand is rising due to higher residential consumption, industrial reshoring and the rapid expansion of AI-powered data centers. Meeting this growing demand requires not only sufficient power generation but also reliable transmission and distribution networks. Transmission and distribution companies are benefiting from investments aimed at improving grid reliability, expanding network capacity and replacing aging infrastructure.
Amid the growing need for transmission and distribution infrastructure, let us compare Exelon Corporation (EXC - Free Report) and Eversource Energy (ES - Free Report) . Both utilities are investing significantly in grid infrastructure and modernization, making them comparable players within the regulated electric utility space.
Exelon benefits from its regulated business model, supported by decoupling mechanisms, cost-recovery frameworks and reliable transmission and distribution operations. Its strategic investment plan prioritizes grid modernization, transmission expansion and infrastructure upgrades to meet rising electricity demand, including growing data-center loads. Continued investments are expected to expand the rate base, improve reliability and support long-term earnings and dividend growth.
Eversource Energy benefits from its regulated utility model, which supports predictable cash flows and cost recovery. The company is concentrating its portfolio on regulated electric and natural gas delivery operations, improving earnings visibility. Its capital allocation strategy focuses on transmission and distribution upgrades, grid modernization and system resilience. These investments are aimed at meeting rising electricity demand, improving reliability and supporting rate-base growth.
Exelon and Eversource Energy are established utility companies. A comparison of their key fundamentals can help investors identify the stock with stronger investment potential.
EXC & ES’ Earnings Growth Projections
The Zacks Consensus Estimate for EXC’s earnings per share (EPS) is pegged at $2.86 for 2026 and $3.05 for 2027, suggesting year-over-year growth of 3.25% and 6.57%, respectively. EXC’s long-term (three to five years) earnings growth is currently pinned at 6.39%.
Image Source: Zacks Investment Research
On the other side, the Zacks Consensus Estimate for ES’ EPS is pegged at $4.64 in 2026 and $4.95 in 2027, suggesting a year-over-year decline of 2.52% and growth of 6.61%, respectively. ES’ long-term earnings growth is currently pinned at 4.96%
Image Source: Zacks Investment Research
EXC & ES’ Debt Position
Eversource Energy’s debt-to-capital currently stands at 64.36%, higher than Exelon’s 63.95%. EXC and ES’ debt levels are higher than the industry’s 62.33%.
Image Source: Zacks Investment Research
EXC’s times interest earned ratio was 2.5 at the end of the second quarter compared with 2.2 for ES, indicating that both companies generated sufficient operating earnings to cover their interest expenses. Exelon’s higher ratio is better, as it suggests a relatively stronger ability to meet interest obligations while funding its investment plans.
EXC & ES’ Dividend Yield
Regular dividend payments are important for utility investors seeking stable income. Consistent distributions reflect predictable cash flows and earnings visibility while highlighting financial strength, disciplined capital allocation and management’s confidence in sustaining shareholder returns.
Currently, Eversource Energy’s dividend yield is 4.83%, slightly higher than Exelon's 4.05%. Both companies offer dividend yields above the S&P 500’s average yield of 1.43%.
EXC & ES’ Capital Investment Plans
Exelon plans to invest $41.7 billion from 2026 through 2029 to strengthen its electric distribution and transmission networks and gas delivery infrastructure. The plan includes $21.8 billion for electric distribution, $16.3 billion for electric transmission and $3.6 billion for gas delivery and other investments. The spending is expected to support grid reliability, customer needs and rate-base growth.
Eversource Energy plans to invest approximately $5.07 billion in 2026 and $26.5 billion through 2030. The plan includes about $18.5 billion for electric transmission and distribution and $6.8 billion for natural gas distribution. It also identifies nearly $1 billion of potential incremental investment in Connecticut’s advanced metering infrastructure.
EXC & ES’ Price Performance
In the past month, shares of Exelon have declined 5% compared with Eversource Energy’s 7.4% fall.
Image Source: Zacks Investment Research
Summing Up
Exelon and Eversource Energy benefit from rising electricity demand, including growing data-center loads, while making significant investments in transmission and distribution infrastructure to support customers across their respective service territories.
Based on the above analysis, Exelon is our preferred pick, supported by stronger earnings growth, a broader capital investment plan, a better debt position and better price performance.
View the Zacks #1 Rank List
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EXC vs. ES: Which Utility Stock Offers Better Investment Potential?
Key Takeaways
Companies operating in the Zacks Utility - Electric Power industry enjoy a regulated framework that provides greater earnings visibility and supports long-term investment. Approved rates enable utilities to recover costs and earn returns on their capital investments. Reliable dividends strengthen the sector’s defensive profile, while expanding clean energy capacity helps meet growing power requirements.
U.S. electricity demand is rising due to higher residential consumption, industrial reshoring and the rapid expansion of AI-powered data centers. Meeting this growing demand requires not only sufficient power generation but also reliable transmission and distribution networks. Transmission and distribution companies are benefiting from investments aimed at improving grid reliability, expanding network capacity and replacing aging infrastructure.
Amid the growing need for transmission and distribution infrastructure, let us compare Exelon Corporation (EXC - Free Report) and Eversource Energy (ES - Free Report) . Both utilities are investing significantly in grid infrastructure and modernization, making them comparable players within the regulated electric utility space.
Exelon benefits from its regulated business model, supported by decoupling mechanisms, cost-recovery frameworks and reliable transmission and distribution operations. Its strategic investment plan prioritizes grid modernization, transmission expansion and infrastructure upgrades to meet rising electricity demand, including growing data-center loads. Continued investments are expected to expand the rate base, improve reliability and support long-term earnings and dividend growth.
Eversource Energy benefits from its regulated utility model, which supports predictable cash flows and cost recovery. The company is concentrating its portfolio on regulated electric and natural gas delivery operations, improving earnings visibility. Its capital allocation strategy focuses on transmission and distribution upgrades, grid modernization and system resilience. These investments are aimed at meeting rising electricity demand, improving reliability and supporting rate-base growth.
Exelon and Eversource Energy are established utility companies. A comparison of their key fundamentals can help investors identify the stock with stronger investment potential.
EXC & ES’ Earnings Growth Projections
The Zacks Consensus Estimate for EXC’s earnings per share (EPS) is pegged at $2.86 for 2026 and $3.05 for 2027, suggesting year-over-year growth of 3.25% and 6.57%, respectively. EXC’s long-term (three to five years) earnings growth is currently pinned at 6.39%.
Image Source: Zacks Investment Research
On the other side, the Zacks Consensus Estimate for ES’ EPS is pegged at $4.64 in 2026 and $4.95 in 2027, suggesting a year-over-year decline of 2.52% and growth of 6.61%, respectively. ES’ long-term earnings growth is currently pinned at 4.96%
Image Source: Zacks Investment Research
EXC & ES’ Debt Position
Eversource Energy’s debt-to-capital currently stands at 64.36%, higher than Exelon’s 63.95%. EXC and ES’ debt levels are higher than the industry’s 62.33%.
Image Source: Zacks Investment Research
EXC’s times interest earned ratio was 2.5 at the end of the second quarter compared with 2.2 for ES, indicating that both companies generated sufficient operating earnings to cover their interest expenses. Exelon’s higher ratio is better, as it suggests a relatively stronger ability to meet interest obligations while funding its investment plans.
EXC & ES’ Dividend Yield
Regular dividend payments are important for utility investors seeking stable income. Consistent distributions reflect predictable cash flows and earnings visibility while highlighting financial strength, disciplined capital allocation and management’s confidence in sustaining shareholder returns.
Currently, Eversource Energy’s dividend yield is 4.83%, slightly higher than Exelon's 4.05%. Both companies offer dividend yields above the S&P 500’s average yield of 1.43%.
EXC & ES’ Capital Investment Plans
Exelon plans to invest $41.7 billion from 2026 through 2029 to strengthen its electric distribution and transmission networks and gas delivery infrastructure. The plan includes $21.8 billion for electric distribution, $16.3 billion for electric transmission and $3.6 billion for gas delivery and other investments. The spending is expected to support grid reliability, customer needs and rate-base growth.
Eversource Energy plans to invest approximately $5.07 billion in 2026 and $26.5 billion through 2030. The plan includes about $18.5 billion for electric transmission and distribution and $6.8 billion for natural gas distribution. It also identifies nearly $1 billion of potential incremental investment in Connecticut’s advanced metering infrastructure.
EXC & ES’ Price Performance
In the past month, shares of Exelon have declined 5% compared with Eversource Energy’s 7.4% fall.
Image Source: Zacks Investment Research
Summing Up
Exelon and Eversource Energy benefit from rising electricity demand, including growing data-center loads, while making significant investments in transmission and distribution infrastructure to support customers across their respective service territories.
Based on the above analysis, Exelon is our preferred pick, supported by stronger earnings growth, a broader capital investment plan, a better debt position and better price performance.
Currently, Exelon carries a Zacks Rank #3 (Hold), while Eversource Energy has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.