Thomson Reuters (TRI) Competitors

Thomson Reuters (NYSE:TRI) and Morningstar (NASDAQ:MORN) are both large-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, media sentiment, profitability, dividends, valuation, institutional ownership and earnings.

Is TRI or MORN a better dividend stock?

Thomson Reuters pays an annual dividend of $2.38 per share and has a dividend yield of 1.1%. Morningstar pays an annual dividend of $1.82 per share and has a dividend yield of 0.6%. Thomson Reuters pays out 49.7% of its earnings in the form of a dividend. Morningstar pays out 20.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Morningstar has raised its dividend for 16 consecutive years.

Do analysts recommend TRI or MORN?

Thomson Reuters currently has a consensus target price of $187.30, suggesting a potential downside of 10.97%. Morningstar has a consensus target price of $361.67, suggesting a potential upside of 26.24%. Given Morningstar's stronger consensus rating and higher possible upside, analysts plainly believe Morningstar is more favorable than Thomson Reuters.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thomson Reuters	0 Sell rating(s)	9 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.25
Morningstar	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67

Which has more volatility & risk, TRI or MORN?

Thomson Reuters has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Morningstar has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Do institutionals and insiders believe in TRI or MORN?

17.3% of Thomson Reuters shares are held by institutional investors. Comparatively, 57.0% of Morningstar shares are held by institutional investors. 36.2% of Morningstar shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Does the media refer more to TRI or MORN?

In the previous week, Morningstar had 16 more articles in the media than Thomson Reuters. MarketBeat recorded 30 mentions for Morningstar and 14 mentions for Thomson Reuters. Thomson Reuters' average media sentiment score of 0.47 beat Morningstar's score of 0.42 indicating that Thomson Reuters is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Thomson Reuters	6 Very Positive mention(s)	2 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Morningstar	8 Very Positive mention(s)	6 Positive mention(s)	9 Neutral mention(s)	4 Negative mention(s)	2 Very Negative mention(s)	Neutral

Is TRI or MORN more profitable?

Thomson Reuters has a net margin of 30.45% compared to Morningstar's net margin of 16.60%. Morningstar's return on equity of 23.23% beat Thomson Reuters' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Thomson Reuters	30.45%	14.62%	9.19%
Morningstar	16.60%	23.23%	10.26%

Which has higher valuation and earnings, TRI or MORN?

Thomson Reuters has higher revenue and earnings than Morningstar. Morningstar is trading at a lower price-to-earnings ratio than Thomson Reuters, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thomson Reuters	$7.27B	13.03	$2.21B	$4.79	43.92
Morningstar	$2.28B	5.32	$369.90M	$8.90	32.19

Summary

Morningstar beats Thomson Reuters on 11 of the 19 factors compared between the two stocks.