Moodys Corporation (MCO)vsThe Travelers Companies Inc (TRV)
MCO
Moodys Corporation
$428.05
-0.10%
FINANCIAL SERVICES · Cap: $76.27B
TRV
The Travelers Companies Inc
$290.59
-0.83%
FINANCIAL SERVICES · Cap: $65.36B
Smart Verdict
WallStSmart Research — data-driven comparison
The Travelers Companies Inc generates 533% more annual revenue ($48.83B vs $7.72B). MCO leads profitability with a 31.9% profit margin vs 12.9%. MCO appears more attractively valued with a PEG of 1.93. TRV earns a higher WallStSmart Score of 71/100 (B).
MCO
Strong Buy71
out of 100
Grade: B
TRV
Strong Buy71
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
+75.4%
Fair Value
$1213.50
Current Price
$290.59
$922.91 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
Attractively priced relative to earnings
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 25.9%
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 18.7x book value
Expensive relative to growth rate
3.5% revenue growth
Negative free cash flow — burning cash
Distress zone — elevated risk
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 : TRV
The strongest argument for TRV centers on P/E Ratio, Market Cap, Return on Equity.
Bear Case : MCO
The primary concerns for MCO are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : TRV
The primary concerns for TRV are PEG Ratio, Revenue Growth, Free Cash Flow.
Key Dynamics to Monitor
MCO profiles as a mature stock while TRV is a value play — different risk/reward profiles.
MCO carries more volatility with a beta of 1.44 — expect wider price swings.
MCO is growing revenue faster at 13.0% — sustainability is the question.
Monitor FINANCIAL DATA & STOCK EXCHANGES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MCO scores higher overall (71/100 vs 71/100), backed by strong 31.9% margins and 13.0% revenue growth. TRV offers better value entry with a 75.4% 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.
The Travelers Companies Inc
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
The Travelers Companies, Inc., commonly known as Travelers, is an American insurance company.
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