Morningstar (MORN) & Its Peers Head-To-Head Survey

Morningstar (NASDAQ: MORN) is one of 27 publicly-traded companies in the “Professional Information Services” industry, but how does it compare to its competitors? We will compare Morningstar to related businesses based on the strength of its analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Dividends



Morningstar pays an annual dividend of $0.92 per share and has a dividend yield of 1.1%. Morningstar pays out 23.5% of its earnings in the form of a dividend. As a group, “Professional Information Services” companies pay a dividend yield of 1.4% and pay out 33.7% of their earnings in the form of a dividend.

Insider & Institutional Ownership

38.3% of Morningstar shares are owned by institutional investors. Comparatively, 58.4% of shares of all “Professional Information Services” companies are owned by institutional investors. 57.4% of Morningstar shares are owned by company insiders. Comparatively, 12.2% of shares of all “Professional Information Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Morningstar and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Morningstar 19.11% 15.76% 8.32%
Morningstar Competitors 6.66% 27.06% 5.08%

Analyst Recommendations

This is a summary of current ratings for Morningstar and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Morningstar 0 0 0 0 N/A
Morningstar Competitors 72 517 697 6 2.49

As a group, “Professional Information Services” companies have a potential downside of 4.31%. Given Morningstar’s competitors higher possible upside, analysts clearly believe Morningstar has less favorable growth aspects than its competitors.

Volatility and Risk

Morningstar has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Morningstar’s competitors have a beta of 0.99, meaning that their average stock price is 1% less volatile than the S&P 500.

Earnings & Valuation

This table compares Morningstar and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Morningstar $847.00 million $228.30 million 22.26
Morningstar Competitors $3.22 billion $939.14 million 17.70

Morningstar’s competitors have higher revenue and earnings than Morningstar. Morningstar is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Morningstar competitors beat Morningstar on 7 of the 12 factors compared.

About Morningstar

Morningstar, Inc. is a provider of independent investment research in North America, Europe, Australia, and Asia. The Company focuses to create products that help investors reach their financial goals. It offers a range of data, software, research, and investment management offerings for financial advisors, asset managers, sponsors, and individual investors. It provides data and research insights on a range of investment offerings, including managed investment products, listed companies, capital markets, and real-time global market data. It conducts its business operations outside of the United States through subsidiaries in countries, including Australia, Brazil, Canada, Chile, Denmark, France, Germany, India, Italy, Japan, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, People’s Republic of China (both Hong Kong and the mainland), Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, the United Arab Emirates, and the United Kingdom.

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