Morningstar (NASDAQ:MORN) & Its Rivals Head-To-Head Survey

Morningstar (NASDAQ: MORN) is one of 22 public companies in the “Professional Information Services” industry, but how does it weigh in compared to its rivals? We will compare Morningstar to similar businesses based on the strength of its institutional ownership, dividends, risk, analyst recommendations, valuation, earnings and profitability.

Risk and Volatility

Morningstar has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Morningstar’s rivals have a beta of 1.02, indicating that their average share price is 2% more volatile than the S&P 500.

Insider & Institutional Ownership

38.7% of Morningstar shares are owned by institutional investors. Comparatively, 62.6% of shares of all “Professional Information Services” companies are owned by institutional investors. 57.4% of Morningstar shares are owned by insiders. Comparatively, 10.5% of shares of all “Professional Information Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Morningstar and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Morningstar 0 0 0 0 N/A
Morningstar Competitors 76 540 715 6 2.49

As a group, “Professional Information Services” companies have a potential downside of 2.05%. Given Morningstar’s rivals higher possible upside, analysts clearly believe Morningstar has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Morningstar and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Morningstar $798.60 million $161.00 million 23.86
Morningstar Competitors $3.13 billion $588.72 million 1,484.97

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

Dividends

Morningstar pays an annual dividend of $0.92 per share and has a dividend yield of 1.0%. 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 1.5% and pay out 38.4% of their earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Morningstar 19.11% 15.43% 8.28%
Morningstar Competitors 4.01% 17.96% 4.01%

Summary

Morningstar rivals beat Morningstar on 8 of the 12 factors compared.

Morningstar Company Profile

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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