WallStSmart

Moodys Corporation (MCO)vsMorningstar Inc (MORN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Moodys Corporation generates 218% more annual revenue ($8.16B vs $2.57B). MCO leads profitability with a 34.3% profit margin vs 16.4%. MCO appears more attractively valued with a PEG of 1.62. MCO earns a higher WallStSmart Score of 71/100 (B).

MCO

Strong Buy

71

out of 100

Grade: B

Growth: 8.7Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 3.17

MORN

Strong Buy

65

out of 100

Grade: B-

Growth: 7.3Profit: 8.5Value: 5.0Quality: 5.5
Piotroski: 4/9Altman Z: 2.34

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCO6 strengths · Avg: 9.8/10
Return on EquityProfitability
92.4%10/10

Every $100 of equity generates 92 in profit

Profit MarginProfitability
34.3%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
49.5%10/10

Strong operational efficiency at 49.5%

EPS GrowthGrowth
56.7%10/10

Earnings expanding 56.7% YoY

Altman Z-ScoreHealth
3.1710/10

Safe zone — low bankruptcy risk

Market CapQuality
$82.25B9/10

Large-cap with strong market position

MORN3 strengths · Avg: 8.7/10
Return on EquityProfitability
39.5%10/10

Every $100 of equity generates 40 in profit

Operating MarginProfitability
24.2%8/10

Strong operational efficiency at 24.2%

EPS GrowthGrowth
35.4%8/10

Earnings expanding 35.4% YoY

Areas to Watch

MCO4 concerns · Avg: 2.8/10
PEG RatioValuation
1.624/10

Expensive relative to growth rate

P/E RatioValuation
29.7x4/10

Moderate valuation

Price/BookValuation
27.2x2/10

Trading at 27.2x book value

Debt/EquityHealth
2.491/10

Elevated debt levels

MORN2 concerns · Avg: 3.5/10
PEG RatioValuation
2.314/10

Expensive relative to growth rate

Debt/EquityHealth
1.863/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : MCO

The strongest argument for MCO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 34.3% and operating margin at 49.5%. Revenue growth of 15.1% demonstrates continued momentum.

Bull Case : MORN

The strongest argument for MORN centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 16.4% and operating margin at 24.2%.

Bear Case : MCO

The primary concerns for MCO are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.49 is elevated, increasing financial risk.

Bear Case : MORN

The primary concerns for MORN are PEG Ratio, Debt/Equity. Debt-to-equity of 1.86 is elevated, increasing financial risk.

Key Dynamics to Monitor

MCO profiles as a growth stock while MORN is a mature play — different risk/reward profiles.

MCO carries more volatility with a beta of 1.33 — expect wider price swings.

MCO is growing revenue faster at 15.1% — sustainability is the question.

MCO generates stronger free cash flow (684M), providing more financial flexibility.

Bottom Line

MCO scores higher overall (71/100 vs 65/100), backed by strong 34.3% margins and 15.1% revenue growth. 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.

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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