FactSet Research Systems vs Morningstar Which Outperforms?

FactSet Research Systems and Morningstar are two prominent companies in the financial services industry that offer stock analysis and investment research tools to investors. FactSet is known for its comprehensive data and analytics platform that provides real-time financial information and market data to help investors make informed decisions. Morningstar, on the other hand, is renowned for its proprietary stock rating system and research reports that provide valuable insights into a company's performance and potential for growth. Both companies offer valuable resources for investors looking to navigate the stock market effectively.

FactSet Research Systems or Morningstar?

When comparing FactSet Research Systems and Morningstar, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between FactSet Research Systems and Morningstar.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. FactSet Research Systems has a dividend yield of 0.83%, while Morningstar has a dividend yield of 0.46%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. FactSet Research Systems reports a 5-year dividend growth of 9.08% year and a payout ratio of 28.05%. On the other hand, Morningstar reports a 5-year dividend growth of 8.45% year and a payout ratio of 20.83%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with FactSet Research Systems P/E ratio at 34.78 and Morningstar's P/E ratio at 46.06. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. FactSet Research Systems P/B ratio is 9.77 while Morningstar's P/B ratio is 9.61.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, FactSet Research Systems has seen a 5-year revenue growth of 0.57%, while Morningstar's is 1.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with FactSet Research Systems's ROE at 29.41% and Morningstar's ROE at 22.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $479.62 for FactSet Research Systems and $348.10 for Morningstar. Over the past year, FactSet Research Systems's prices ranged from $391.84 to $488.64, with a yearly change of 24.70%. Morningstar's prices fluctuated between $264.79 and $352.00, with a yearly change of 32.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.