MCO vs. MSCI, RKT, LPLA, AGM, TSLX, USA, GAB, TY, RONI, and SYBT
Should you be buying Moody's stock or one of its competitors? The main competitors of Moody's include MSCI (MSCI), Rocket Companies (RKT), LPL Financial (LPLA), Federal Agricultural Mortgage (AGM), Sixth Street Specialty Lending (TSLX), Liberty All-Star Equity Fund (USA), The Gabelli Equity Trust (GAB), Tri-Continental (TY), Rice Acquisition Corp. II (RONI), and Stock Yards Bancorp (SYBT).
Moody's (NYSE:MCO) and MSCI (NYSE:MSCI) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, community ranking, media sentiment, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
92.1% of Moody's shares are held by institutional investors. Comparatively, 90.0% of MSCI shares are held by institutional investors. 0.1% of Moody's shares are held by company insiders. Comparatively, 3.2% of MSCI shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Moody's pays an annual dividend of $3.40 per share and has a dividend yield of 0.9%. MSCI pays an annual dividend of $6.40 per share and has a dividend yield of 1.4%. Moody's pays out 37.1% of its earnings in the form of a dividend. MSCI pays out 43.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Moody's currently has a consensus target price of $400.50, suggesting a potential upside of 2.31%. MSCI has a consensus target price of $569.53, suggesting a potential upside of 20.12%. Given MSCI's higher probable upside, analysts clearly believe MSCI is more favorable than Moody's.
MSCI received 1 more outperform votes than Moody's when rated by MarketBeat users. Likewise, 65.63% of users gave MSCI an outperform vote while only 59.57% of users gave Moody's an outperform vote.
MSCI has a net margin of 44.55% compared to Moody's' net margin of 27.01%. Moody's' return on equity of 54.50% beat MSCI's return on equity.
Moody's has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, MSCI has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.
In the previous week, Moody's had 14 more articles in the media than MSCI. MarketBeat recorded 36 mentions for Moody's and 22 mentions for MSCI. MSCI's average media sentiment score of 0.85 beat Moody's' score of 0.66 indicating that MSCI is being referred to more favorably in the news media.
Moody's has higher revenue and earnings than MSCI. MSCI is trading at a lower price-to-earnings ratio than Moody's, indicating that it is currently the more affordable of the two stocks.
Summary
MSCI beats Moody's on 10 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MCO and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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