MCO vs. ICE, CME, IBKR, MSCI, NDAQ, MKTX, AROW, SPGI, EFX, and TRU
Should you be buying Moody's stock or one of its competitors? The main competitors of Moody's include Intercontinental Exchange (ICE), CME Group (CME), Interactive Brokers Group (IBKR), MSCI (MSCI), Nasdaq (NDAQ), MarketAxess (MKTX), Arrow Financial (AROW), S&P Global (SPGI), Equifax (EFX), and TransUnion (TRU).
Intercontinental Exchange (NYSE:ICE) and Moody's (NYSE:MCO) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, community ranking, media sentiment, valuation, profitability and analyst recommendations.
Intercontinental Exchange pays an annual dividend of $1.80 per share and has a dividend yield of 1.3%. Moody's pays an annual dividend of $3.40 per share and has a dividend yield of 0.8%. Intercontinental Exchange pays out 41.3% of its earnings in the form of a dividend. Moody's pays out 37.1% 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. Intercontinental Exchange has increased its dividend for 8 consecutive years and Moody's has increased its dividend for 1 consecutive years. Intercontinental Exchange is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Intercontinental Exchange has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Moody's has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.
Moody's has a net margin of 27.01% compared to Moody's' net margin of 24.24%. Intercontinental Exchange's return on equity of 54.50% beat Moody's' return on equity.
Intercontinental Exchange has higher revenue and earnings than Moody's. Intercontinental Exchange is trading at a lower price-to-earnings ratio than Moody's, indicating that it is currently the more affordable of the two stocks.
Intercontinental Exchange currently has a consensus target price of $148.29, suggesting a potential upside of 10.78%. Moody's has a consensus target price of $400.50, suggesting a potential downside of 0.34%. Given Moody's' stronger consensus rating and higher possible upside, equities analysts clearly believe Intercontinental Exchange is more favorable than Moody's.
In the previous week, Moody's had 1 more articles in the media than Intercontinental Exchange. MarketBeat recorded 10 mentions for Moody's and 9 mentions for Intercontinental Exchange. Intercontinental Exchange's average media sentiment score of 1.37 beat Moody's' score of 1.26 indicating that Moody's is being referred to more favorably in the news media.
89.3% of Intercontinental Exchange shares are owned by institutional investors. Comparatively, 92.1% of Moody's shares are owned by institutional investors. 1.1% of Intercontinental Exchange shares are owned by insiders. Comparatively, 0.1% of Moody's shares 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.
Intercontinental Exchange received 294 more outperform votes than Moody's when rated by MarketBeat users. Likewise, 72.63% of users gave Intercontinental Exchange an outperform vote while only 59.57% of users gave Moody's an outperform vote.
Summary
Intercontinental Exchange and Moody's tied by winning 11 of the 22 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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