MCO vs MORN: How Moody's and Morningstar Compare (2026)

Same yardstick, side by side (as of July 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: MORN is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. MCO and MORN share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined MCO and MORN exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Moody's is a global integrated risk-assessment company best known for credit ratings. It operates two main segments. Moody's Investors Service (MIS) rates the creditworthiness of bonds, loans, and other debt instruments issued by corporations, governments, and structured-finance vehicles, earning fees from issuers each time debt is rated. Moody's Analytics (MA) sells subscription software, data, research, and models for credit risk, economic forecasting, regulatory compliance, and increasingly ESG and supply-chain risk. Together with S&P Global, Moody's forms half of an effective duopoly in credit ratings, an industry protected by deep regulatory entrenchment, network effects, and the trust embedded in its ratings over more than a century. The ratings business is highly profitable and cyclical with debt-issuance volumes, while Moody's Analytics provides growing, recurring subscription revenue that smooths the cycle. Founded in 1909 and headquartered in New York, Moody's is a high-margin compounder tied to the global flow of capital and debt.

Full MCO guide

Morningstar is an investment-research and financial-data provider whose products span five reportable segments: the Morningstar Direct Platform (data, research, Direct, and Advisor Workstation), PitchBook (private-capital data, analytics, and AI-enabled software for venture capital, private equity, private credit, and M&A), Morningstar Credit (credit ratings, research, and analytics through DBRS Morningstar), Morningstar Wealth (investment products, advisor platforms, and managed portfolios), and Morningstar Retirement. The business is built on proprietary datasets, independent research, and widely used ratings and indexes that embed deeply into advisor, asset-manager, and institutional workflows, giving it high switching costs and durable, largely recurring revenue.

Full MORN guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• MCO drivers: Ratings duopoly and pricing power; Moody's Analytics recurring revenue.
• MORN drivers: PitchBook and private-markets data; Morningstar Credit (DBRS) rebound.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The ratings segment is cyclical: debt issuance falls sharply when interest rates rise quickly or credit markets freeze, directly pressuring MIS revenue. For MORN, credit-ratings revenue is cyclical and tracks debt-issuance volumes, so a slowdown in structured finance or corporate issuance can quickly pressure a fast-growing segment.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick MCO if you believe its drivers more; MORN if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the MCO and MORN guides.

MCO. Moody's trades at a premium to the market, reflecting its position in a protected ratings duopoly, high margins, capital-light economics, and the recurring revenue of Moody's Analytics. The valuation embeds steady mid-to-high-single-digit growth and assumes durable issuance volumes over time. The multiple has historically compressed during sharp debt-issuance downturns and re-rated as markets reopened.

MORN. Morningstar reported Q1 2026 revenue near $644.8 million, up about 11% year over year, with operating profit up more than 35% and diluted EPS around $2.73, up roughly 50%, both ahead of consensus. Growth was broad-based but led by Morningstar Credit (up about 38%) and PitchBook, and the company continued buying back stock. At a mid-to-high-teens trailing earnings multiple, the shares reflect steady growth plus continued margin recovery rather than a sharp re-acceleration.

Headline figures (approximate, early 2026): MCO shows revenue (ttm) ~$7.5 billion, operating margin ~45%, net income (ttm) ~$2.5 billion, eps (ttm) ~$13.50; MORN shows revenue (ttm) ~$2.5B, q1 2026 revenue ~$644.8M (up ~10.8% YoY), q1 2026 diluted eps ~$2.73 (up ~50% YoY), morningstar credit growth ~+38% YoY (Q1 2026).

MCO and MORN are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined MCO and MORN exposure against your real portfolio. It is not an investment adviser.