Moodys Corporation (MCO)vsMorningstar Inc (MORN)
MCO
Moodys Corporation
$474.95
+1.62%
FINANCIAL SERVICES · Cap: $82.25B
MORN
Morningstar Inc
$191.02
-1.10%
FINANCIAL SERVICES · Cap: $7.52B
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 Buy71
out of 100
Grade: B
MORN
Strong Buy65
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 92 in profit
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 49.5%
Earnings expanding 56.7% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 40 in profit
Strong operational efficiency at 24.2%
Earnings expanding 35.4% YoY
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 27.2x 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 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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