Thomson Reuters (TRI) Competitors

Thomson Reuters (NYSE:TRI) and Morningstar (NASDAQ:MORN) are both large-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, media sentiment, institutional ownership and dividends.

Do analysts prefer TRI or MORN?

Thomson Reuters currently has a consensus price target of $187.30, suggesting a potential downside of 4.31%. Morningstar has a consensus price target of $361.67, suggesting a potential upside of 16.67%. Given Morningstar's stronger consensus rating and higher probable upside, analysts clearly believe Morningstar is more favorable than Thomson Reuters.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thomson Reuters	0 Sell rating(s)	9 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.18
Morningstar	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67

Which has more risk & volatility, TRI or MORN?

Thomson Reuters has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Morningstar has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Is TRI or MORN more profitable?

Thomson Reuters has a net margin of 30.45% compared to Morningstar's net margin of 16.60%. Morningstar's return on equity of 23.23% beat Thomson Reuters' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Thomson Reuters	30.45%	14.62%	9.19%
Morningstar	16.60%	23.23%	10.26%

Which has higher valuation and earnings, TRI or MORN?

Thomson Reuters has higher revenue and earnings than Morningstar. Morningstar is trading at a lower price-to-earnings ratio than Thomson Reuters, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thomson Reuters	$7.27B	12.12	$2.21B	$4.79	40.86
Morningstar	$2.28B	5.76	$369.90M	$8.90	34.83

Does the media favor TRI or MORN?

In the previous week, Morningstar had 24 more articles in the media than Thomson Reuters. MarketBeat recorded 26 mentions for Morningstar and 2 mentions for Thomson Reuters. Morningstar's average media sentiment score of 0.56 beat Thomson Reuters' score of 0.40 indicating that Morningstar is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Thomson Reuters	0 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Morningstar	9 Very Positive mention(s)	3 Positive mention(s)	10 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive

Is TRI or MORN a better dividend stock?

Thomson Reuters pays an annual dividend of $2.38 per share and has a dividend yield of 1.2%. Morningstar pays an annual dividend of $1.82 per share and has a dividend yield of 0.6%. Thomson Reuters pays out 49.7% of its earnings in the form of a dividend. Morningstar pays out 20.4% 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. Morningstar has raised its dividend for 16 consecutive years.

Do institutionals and insiders believe in TRI or MORN?

17.3% of Thomson Reuters shares are owned by institutional investors. Comparatively, 57.0% of Morningstar shares are owned by institutional investors. 36.2% of Morningstar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Morningstar beats Thomson Reuters on 12 of the 18 factors compared between the two stocks.