Moodys Corporation (MCO)vsCharles Schwab Corp (SCHW)
MCO
Moodys Corporation
$428.05
-0.10%
FINANCIAL SERVICES · Cap: $76.27B
SCHW
Charles Schwab Corp
$95.68
-0.72%
FINANCIAL SERVICES · Cap: $169.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Charles Schwab Corp generates 210% more annual revenue ($23.92B vs $7.72B). SCHW leads profitability with a 37.0% profit margin vs 31.9%. SCHW appears more attractively valued with a PEG of 1.12. SCHW earns a higher WallStSmart Score of 75/100 (B+).
MCO
Strong Buy71
out of 100
Grade: B
SCHW
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+33.1%
Fair Value
$639.76
Current Price
$428.05
$211.71 discount
Margin of Safety
+56.0%
Fair Value
$217.62
Current Price
$95.68
$121.94 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 62 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 42.1%
Earnings expanding 57.6% YoY
Large-cap with strong market position
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 49.7%
Conservative balance sheet, low leverage
Large-cap with strong market position
18.9% revenue growth
Earnings expanding 41.1% YoY
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 18.7x book value
Negative free cash flow — burning cash
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 31.9% and operating margin at 42.1%. Revenue growth of 13.0% demonstrates continued momentum.
Bull Case : SCHW
The strongest argument for SCHW centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 37.0% and operating margin at 49.7%. Revenue growth of 18.9% demonstrates continued momentum.
Bear Case : MCO
The primary concerns for MCO are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : SCHW
The primary concerns for SCHW are Free Cash Flow.
Key Dynamics to Monitor
MCO profiles as a mature stock while SCHW is a growth play — different risk/reward profiles.
MCO carries more volatility with a beta of 1.44 — expect wider price swings.
SCHW is growing revenue faster at 18.9% — sustainability is the question.
MCO generates stronger free cash flow (777M), providing more financial flexibility.
Bottom Line
SCHW scores higher overall (75/100 vs 71/100), backed by strong 37.0% margins and 18.9% revenue growth. MCO offers better value entry with a 33.1% margin of safety. Both earn "Strong Buy" and "Strong 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.
Charles Schwab Corp
FINANCIAL SERVICES · CAPITAL MARKETS · USA
The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, an electronic trading platform, and wealth management advisory services to both retail and institutional clients.
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