S&P Global Inc SPGI

S&P Global Has an Array of High-Margin, Moaty Businesses That Underpin a Solid Outlook

Whether through credit ratings, financial indexes, or commodity price reporting, S&P Global has established a wide moat from its data-driven benchmarks. Given the embedded nature of these benchmarks, S&P enjoys a strong competitive position and strong operating margins. In February 2022, S&P completed its $44 billion acquisition of IHS Markit. We believe IHS Markit's recurring revenue model diversified S&P's revenue but also limited revenue upside. We note that much of IHS Markit has been divested or spun off, such as Engineering Solutions, OSTTRA, and Mobility Global.