Moody's Corporation (MCO) vs Morningstar, Inc. (MORN)

Moody's Corporation and Morningstar, Inc. are both Financial Data & Stock Exchanges companies. Moody's Corporation is the larger, with a market value of $84.3B against $8.3B — 10.2× the size. Morningstar, Inc. trades at the lower P/E: 21.4× against 31.2×. Moody's Corporation grew revenue faster over the last twelve months: 11.7% against 9.33%. Moody's Corporation has the higher net margin (34.3% vs 16.4%) and the higher return on invested capital (26.5% vs 17.1%). Both pay a dividend; Moody's Corporation yields more (1.02% vs 0.88%). Across the 21 metrics below, Moody's Corporation leads on 11 and Morningstar, Inc. on 10.

Valuation

Metric MCO MORN Financial Data & Stock Exchanges median
P/E 31.25 21.39 24.61
P/S 10.55 3.34 6.88
P/B 27.18 8.38 4.24
Price to free cash flow 29.00 17.24 20.51
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 3.20% 4.68% 3.90%
Free cash flow yield 3.45% 5.80% 4.47%

Profitability

Metric MCO MORN Financial Data & Stock Exchanges median
Gross margin 74.98% 62.24% 72.94%
Operating margin 44.79% 23.53% 28.94%
Net margin 34.25% 16.43% 24.57%
Free cash flow margin 36.36% 19.38% 31.57%
Return on equity 76.85% 31.96% 15.23%
Return on assets 18.53% 11.13% 7.40%
Return on invested capital 26.51% 17.05% 10.23%

Growth

Metric MCO MORN Financial Data & Stock Exchanges median
Revenue growth (TTM) 11.67% 9.33% 9.16%
EPS growth (last fiscal year) 21.40% 3.38% 13.54%
Revenue growth, 5-year CAGR 7.52% 11.97% 9.24%
Net income growth, 5-year CAGR 6.70% 10.85% 10.85%

Health

Metric MCO MORN Financial Data & Stock Exchanges median
Debt to equity 2.19 1.67 0.55
Current ratio 1.19 1.06 1.04
Net debt to EBITDA 1.19 0.76 1.20

Dividend

Metric MCO MORN Financial Data & Stock Exchanges median
Dividend yield 1.02% 0.88% 1.18%
Payout ratio 0.32 0.19 0.32

Size

Metric MCO MORN Financial Data & Stock Exchanges median
Market cap 84.27b 8.26b 37.60b

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