S&P Global vs Moody's Which Is Superior?

S&P Global and Moody's are two leading financial services companies specializing in credit ratings and analysis. Both companies play a crucial role in providing investors and businesses with valuable insights into the creditworthiness of various entities, including governments, corporations, and financial instruments. Investors often rely on the ratings provided by these companies to make informed decisions about their investments. Despite their similarities, S&P Global and Moody's have distinct methodologies and criteria for evaluating credit risk, leading to differences in their ratings and stock performance.

S&P Global or Moody's?

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

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

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

Growth Investors:

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

Retail Investors:

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