Moodys Corporation (MCO)vsMorningstar Inc (MORN)
MCO
Moodys Corporation
$451.35
+1.36%
FINANCIAL SERVICES · Cap: $79.23B
MORN
Morningstar Inc
$185.76
+1.01%
FINANCIAL SERVICES · Cap: $6.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Moodys Corporation generates 214% more annual revenue ($7.87B vs $2.51B). MCO leads profitability with a 31.7% profit margin vs 16.1%. MCO appears more attractively valued with a PEG of 2.11. MORN earns a higher WallStSmart Score of 67/100 (B-).
MCO
Buy61
out of 100
Grade: C+
MORN
Strong Buy67
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 83 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 45.7%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 40 in profit
Earnings expanding 50.0% YoY
Attractively priced relative to earnings
Strong operational efficiency at 24.2%
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 26.3x book value
Elevated debt levels
Expensive relative to growth rate
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MCO
The strongest argument for MCO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.7% and operating margin at 45.7%.
Bull Case : MORN
The strongest argument for MORN centers on Return on Equity, EPS Growth, P/E Ratio. Profitability is solid with margins at 16.1% and operating margin at 24.2%. Revenue growth of 10.8% demonstrates continued momentum.
Bear Case : MCO
The primary concerns for MCO are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.44 is elevated, increasing financial risk.
Bear Case : MORN
The primary concerns for MORN are PEG Ratio, Debt/Equity. Debt-to-equity of 1.87 is elevated, increasing financial risk.
Key Dynamics to Monitor
MCO carries more volatility with a beta of 1.37 — expect wider price swings.
MORN is growing revenue faster at 10.8% — sustainability is the question.
MCO generates stronger free cash flow (844M), providing more financial flexibility.
Monitor FINANCIAL DATA & STOCK EXCHANGES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MORN scores higher overall (67/100 vs 61/100), backed by strong 16.1% margins and 10.8% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Moodys Corporation
FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA
Moody's Corporation, often referred to as Moody's, is an American business and financial services company. It is the holding company for Moody's Investors Service (MIS), an American credit rating agency, and Moody's Analytics (MA), an American provider of financial analysis software and services.
Morningstar Inc
FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA
Morningstar, Inc. offers independent investment research services in North America, Europe, Australia, and Asia. The company is headquartered in Chicago, Illinois.
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