XEL vs. NEE

Last updated Jun 3, 2026

XEL (Xcel Energy Inc.) and NEE (NextEra Energy, Inc.) are both stocks. Both operate in the Utilities - Regulated Electric industry within the Utilities sector. Over the past 10 years, XEL returned 9.64%/yr vs 13.68%/yr for NEE. A 0.66 correlation means they provide meaningful diversification when combined.

Performance

XEL vs. NEE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Xcel Energy Inc. (XEL) and NextEra Energy, Inc. (NEE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XEL achieves a 6.21% return, which is significantly lower than NEE's 7.45% return. Over the past 10 years, XEL has underperformed NEE with an annualized return of 9.64%, while NEE has yielded a comparatively higher 13.68% annualized return.

XEL

• 1D: 1.91%
• 1M: -5.70%
• YTD: 6.21%
• 6M: 0.01%
• 1Y: 15.21%
• 3Y*: 10.98%
• 5Y*: 5.30%
• 10Y*: 9.64%

NEE

• 1D: 2.41%
• 1M: -11.62%
• YTD: 7.45%
• 6M: 1.99%
• 1Y: 24.76%
• 3Y*: 7.96%
• 5Y*: 6.03%
• 10Y*: 13.68%

*Multi-year figures are annualized to reflect compound growth (CAGR)

XEL vs. NEE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XEL Xcel Energy Inc.	6.21%	13.89%	12.32%	-8.67%	6.44%	4.40%	7.77%	32.37%	5.88%	21.91%
NEE NextEra Energy, Inc.	7.45%	15.47%	21.46%	-25.30%	-8.54%	23.39%	30.06%	42.69%	14.30%	34.39%

Correlation

The correlation between XEL and NEE is 0.54, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.66
Correlation (All Time) Calculated using the full available price history since Jan 13, 2003	0.66

The correlation between XEL and NEE shifts across timeframes, from 0.54 (1 year) to 0.66 (10 years), reflecting how their relationship changes across market environments.

Fundamentals

EPS XEL : $3.50 NEE : $5.27
PE Ratio XEL : 22.22 NEE : 16.26
PEG Ratio XEL : 5.73 NEE : 0.83
PS Ratio XEL : 3.14 NEE : 4.76
Total Revenue (TTM) XEL : $14.78B NEE : $27.93B
Gross Profit (TTM) XEL : $1.88B NEE : $13.35B
EBITDA (TTM) XEL : $6.26B NEE : $14.56B

Return for Risk

XEL vs. NEE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XEL

XEL Risk / Return Rank: 63
XEL Sharpe Ratio Rank: 66
XEL Sortino Ratio Rank: 60
XEL Omega Ratio Rank: 58
XEL Calmar Ratio Rank: 65
XEL Martin Ratio Rank: 68

NEE

NEE Risk / Return Rank: 70
NEE Sharpe Ratio Rank: 72
NEE Sortino Ratio Rank: 66
NEE Omega Ratio Rank: 65
NEE Calmar Ratio Rank: 71
NEE Martin Ratio Rank: 75

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

XEL vs. NEE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Xcel Energy Inc. (XEL) and NextEra Energy, Inc. (NEE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	XEL	NEE	Difference
Sharpe ratio Return per unit of total volatility	0.80	1.05	-0.24
Sortino ratio Return per unit of downside risk	1.31	1.56	-0.24
Omega ratio Gain probability vs. loss probability	1.16	1.20	-0.05
Calmar ratio Return relative to maximum drawdown	1.27	1.71	-0.44
Martin ratio Return relative to average drawdown	3.36	5.24	-1.88
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XEL vs. NEE - Sharpe Ratio Comparison

The current XEL Sharpe Ratio is 0.80, which is comparable to the NEE Sharpe Ratio of 1.05. The chart below compares the historical Sharpe Ratios of XEL and NEE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XEL	NEE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.80	1.05	-0.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.26	0.23	+0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	0.54	-0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.41	0.62	-0.21

Drawdowns

XEL vs. NEE - Drawdown Comparison

The maximum XEL drawdown since its inception was -80.64%, which is greater than NEE's maximum drawdown of -47.81%. Use the drawdown chart below to compare losses from any high point for XEL and NEE.

Drawdown Indicators

	XEL	NEE	Difference
Max Drawdown Largest peak-to-trough decline	-80.64%	-47.81%	-32.83%
Max Drawdown (1Y) Largest decline over 1 year	-11.50%	-14.53%	+3.03%
Max Drawdown (3Y) Largest decline over 3 years	-24.42%	-34.57%	+10.15%
Max Drawdown (5Y) Largest decline over 5 years	-34.41%	-44.97%	+10.56%
Max Drawdown (10Y) Largest decline over 10 years	-34.41%	-44.97%	+10.56%
Current Drawdown Current decline from peak	-6.51%	-12.46%	+5.95%
Average Drawdown Average peak-to-trough decline	-11.32%	-8.92%	-2.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.34%	4.75%	-0.41%

Volatility

XEL vs. NEE - Volatility Comparison

The current volatility for Xcel Energy Inc. (XEL) is 6.85%, while NextEra Energy, Inc. (NEE) has a volatility of 8.33%. This indicates that XEL experiences smaller price fluctuations and is considered to be less risky than NEE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XEL	NEE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.85%	8.33%	-1.48%
Volatility (6M) Calculated over the trailing 6-month period	14.70%	17.09%	-2.39%
Volatility (1Y) Calculated over the trailing 1-year period	19.03%	23.77%	-4.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.80%	26.89%	-6.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.69%	25.48%	-3.79%

Dividends

XEL vs. NEE - Dividend Comparison

XEL's dividend yield for the trailing twelve months is around 2.96%, more than NEE's 2.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NEE NextEra Energy, Inc.	2.05%	2.82%	2.87%	3.08%	2.03%	1.65%	1.81%	2.06%	2.55%	2.52%	2.91%	2.96%
XEL Xcel Energy Inc.	2.96%	3.83%	2.43%	3.36%	2.78%	2.70%	2.58%	2.55%	3.09%	2.99%	3.34%	3.56%

Financials

XEL vs. NEE - Profitability Comparison

The chart below illustrates the profitability comparison between Xcel Energy Inc. and NextEra Energy, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

XEL - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Xcel Energy Inc. reported a gross profit of 0.00 and revenue of 4.02B. Therefore, the gross margin over that period was 0.0%.

NEE - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, NextEra Energy, Inc. reported a gross profit of 0.00 and revenue of 6.70B. Therefore, the gross margin over that period was 0.0%.

XEL - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Xcel Energy Inc. reported an operating income of 754.00M and revenue of 4.02B, resulting in an operating margin of 18.8%.

NEE - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, NextEra Energy, Inc. reported an operating income of 2.21B and revenue of 6.70B, resulting in an operating margin of 33.0%.

XEL - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Xcel Energy Inc. reported a net income of 556.00M and revenue of 4.02B, resulting in a net margin of 13.8%.

NEE - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, NextEra Energy, Inc. reported a net income of 2.18B and revenue of 6.70B, resulting in a net margin of 32.6%.

Frequently Asked Questions

Can I hold both XEL and NEE in my portfolio?

XEL and NEE have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XEL or NEE?

NEE has higher volatility (8.33%) compared to XEL (6.85%). In terms of maximum drawdown, XEL dropped -80.64% vs NEE's -47.81%.

Which has better risk-adjusted returns?

NEE currently has the higher Sharpe Ratio (1.05 vs 0.80), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.