Along with S&P Ratings, Moody’s is a market leader in providing credit ratings on fixed-income securities. Given the embedded nature of credit ratings among capital markets participants, regulators, and index providers, Moody’s enjoys a strong competitive position and strong operating margin.
Even if issuance turns south, strong pricing power and GDP growth should cause a rebound in ratings revenue.
Higher interest rates, corporate deleveraging, and higher spreads could cause a decline in bond issuance that will weigh on ratings revenue.
|
Metric
|
MCO
|
MSCI
|
FDS
|
|---|---|---|---|
Price/Earnings (Normalized) | 37.95 | 33.39 | 27.96 |
Price/Book Value | 20.69 | — | 8.92 |
Price/Sales | 11.70 | 14.13 | 7.58 |
Price/Cash Flow | 31.62 | 29.22 | 22.64 |
|
Metric
|
MCO
|
MSCI
|
FDS
|
|---|---|---|---|
Quick Ratio | 1.54 | 0.92 | 1.57 |
Current Ratio | 1.74 | 1.00 | 1.79 |
Interest Coverage | 6.79 | 8.26 | 10.03 |
|
Metric
|
MCO
|
MSCI
|
FDS
|
|---|---|---|---|
Return on Assets (Normalized) | 12.55% | 21.55% | 14.66% |
Return on Equity (Normalized) | 60.48% | — | 34.73% |
Return on Invested Capital (Normalized) | 18.79% | 33.21% | 17.79% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
SPGI
| S&P Global Inc | Fttgpwzxby | Dmrrp | $133.2 Bil | |
CME
| CME Group Inc Class A | Gxsxjwlkzm | Ryhc | $75.9 Bil | |
ICE
| Intercontinental Exchange Inc | Pnwhwdww | Jzhwk | $75.5 Bil | |
LNSTY
| London Stock Exchange Group PLC ADR | — | Tbtt | $59.9 Bil | |
LDNXF
| London Stock Exchange Group PLC | — | Wmjk | $59.9 Bil | |
COIN
| Coinbase Global Inc Ordinary Shares - Class A | Rvlqgyrn | Jql | $57.3 Bil | |
MSCI
| MSCI Inc | Jjfpbkqbk | Kyh | $37.9 Bil | |
NDAQ
| Nasdaq Inc | Wsmqskhgn | Cdnzyn | $34.7 Bil | |
FDS
| FactSet Research Systems Inc | Xvwgpvxyn | Cpphsx | $16.1 Bil |
:quality(80)/s3.amazonaws.com/arc-authors/morningstar/5fe9ddf2-0963-4604-b5ab-86494761b179.jpg)