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 $79.5B against $7.6B — 10.4× the size. Morningstar, Inc. trades at the lower P/E: 19.3× against 29.3×. 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; Morningstar, Inc. yields more (0.98% vs 0.87%). Across the 21 metrics below, Morningstar, Inc. leads on 11 and Moody's Corporation on 10.

Valuation

Metric MCO MORN Financial Data & Stock Exchanges median
P/E 29.34 19.27 22.78
P/S 9.90 3.01 7.39
P/B 25.53 7.55 3.81
Price to free cash flow 27.24 15.53 18.98
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 3.41% 5.19% 4.23%
Free cash flow yield 3.67% 6.44% 4.63%

Profitability

Metric MCO MORN Financial Data & Stock Exchanges median
Gross margin 74.98% 62.24% 70.90%
Operating margin 44.79% 23.53% 28.27%
Net margin 34.25% 16.43% 22.52%
Free cash flow margin 36.36% 19.38% 28.57%
Return on equity 76.85% 31.96% 15.12%
Return on assets 18.53% 11.13% 6.82%
Return on invested capital 26.51% 17.05% 9.96%

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% 15.41%
Revenue growth, 5-year CAGR 7.52% 11.97% 8.62%
Net income growth, 5-year CAGR 6.70% 10.85% 10.27%

Health

Metric MCO MORN Financial Data & Stock Exchanges median
Debt to equity 2.19 1.67 0.48
Current ratio 1.19 1.06 1.06
Net debt to EBITDA 1.19 0.76 1.19

Dividend

Metric MCO MORN Financial Data & Stock Exchanges median
Dividend yield 0.87% 0.98% 1.31%
Payout ratio 0.26 0.19 0.32

Size

Metric MCO MORN Financial Data & Stock Exchanges median
Market cap 79.45b 7.61b 30.71b

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