Thomson Reuters (TRI) Competitors

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

Which has higher earnings & valuation, MORN or TRI?

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
Morningstar	$2.28B	4.84	$369.90M	$9.39	27.82
Thomson Reuters	$7.32B	10.98	$2.21B	$3.62	49.24

Is MORN or TRI a better dividend stock?

Morningstar pays an annual dividend of $1.82 per share and has a dividend yield of 0.7%. Thomson Reuters pays an annual dividend of $2.38 per share and has a dividend yield of 1.3%. Morningstar pays out 19.4% of its earnings in the form of a dividend. Thomson Reuters pays out 65.7% 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. Morningstar has increased its dividend for 16 consecutive years.

Do institutionals and insiders hold more shares of MORN or TRI?

57.0% of Morningstar shares are owned by institutional investors. Comparatively, 17.3% of Thomson Reuters 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, hedge funds and endowments believe a stock will outperform the market over the long term.

Is MORN or TRI more profitable?

Thomson Reuters has a net margin of 30.45% compared to Morningstar's net margin of 17.22%. Morningstar's return on equity of 23.54% beat Thomson Reuters' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Morningstar	17.22%	23.54%	10.52%
Thomson Reuters	30.45%	14.62%	9.19%

Does the media prefer MORN or TRI?

In the previous week, Morningstar had 33 more articles in the media than Thomson Reuters. MarketBeat recorded 38 mentions for Morningstar and 5 mentions for Thomson Reuters. Thomson Reuters' average media sentiment score of 1.65 beat Morningstar's score of 0.44 indicating that Thomson Reuters is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Morningstar	15 Very Positive mention(s)	2 Positive mention(s)	10 Neutral mention(s)	2 Negative mention(s)	2 Very Negative mention(s)	Neutral
Thomson Reuters	5 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Do analysts prefer MORN or TRI?

Morningstar presently has a consensus target price of $361.67, indicating a potential upside of 38.43%. Thomson Reuters has a consensus target price of $201.90, indicating a potential upside of 13.26%. Given Morningstar's stronger consensus rating and higher possible upside, research analysts clearly believe Morningstar is more favorable than Thomson Reuters.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Morningstar	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67
Thomson Reuters	0 Sell rating(s)	6 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.50

Which has more risk & volatility, MORN or TRI?

Morningstar has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Thomson Reuters has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Summary

Morningstar beats Thomson Reuters on 11 of the 19 factors compared between the two stocks.