Moody's vs S&P Global Which Outperforms?

Moody's Corporation and S&P Global Inc. are two leading financial services companies that specialize in credit ratings, research, and analytics. Both companies have a significant impact on the global financial markets, providing investors and businesses with valuable insights into the creditworthiness and risk profiles of various entities. Despite being competitors in the same industry, Moody's and S&P Global have unique strengths and offerings that cater to different segments of the market, making them essential players in the financial services sector.

Moody's or S&P Global?

When comparing Moody's and S&P Global, 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 Moody's and S&P Global.

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. Moody's has a dividend yield of 0.7%, while S&P Global has a dividend yield of 0.72%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Moody's reports a 5-year dividend growth of 11.84% year and a payout ratio of 30.20%. On the other hand, S&P Global reports a 5-year dividend growth of 12.47% year and a payout ratio of 32.01%.

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 Moody's P/E ratio at 44.36 and S&P Global's P/E ratio at 44.31. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Moody's P/B ratio is 22.75 while S&P Global's P/B ratio is 4.63.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Moody's has seen a 5-year revenue growth of 0.39%, while S&P Global's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Moody's's ROE at 54.97% and S&P Global's ROE at 10.34%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $486.82 for Moody's and $504.27 for S&P Global. Over the past year, Moody's's prices ranged from $360.05 to $503.95, with a yearly change of 39.97%. S&P Global's prices fluctuated between $407.69 and $533.29, with a yearly change of 30.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.