TRI vs. MORN, NYT, SSTK, SCHL, DJCO, MKTW, VALU, VSME, ACN, and SPGI
Should you be buying Thomson Reuters stock or one of its competitors? The main competitors of Thomson Reuters include Morningstar (MORN), New York Times (NYT), Shutterstock (SSTK), Scholastic (SCHL), Daily Journal (DJCO), MarketWise (MKTW), Value Line (VALU), VS MEDIA (VSME), Accenture (ACN), and S&P Global (SPGI).
Morningstar (NASDAQ:MORN) and Thomson Reuters (NYSE:TRI) are both large-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, media sentiment, dividends, analyst recommendations and community ranking.
Thomson Reuters received 194 more outperform votes than Morningstar when rated by MarketBeat users. However, 57.52% of users gave Morningstar an outperform vote while only 48.82% of users gave Thomson Reuters an outperform vote.
Morningstar pays an annual dividend of $1.62 per share and has a dividend yield of 0.6%. Thomson Reuters pays an annual dividend of $2.13 per share and has a dividend yield of 1.3%. Morningstar pays out 32.7% of its earnings in the form of a dividend. Thomson Reuters pays out 40.6% 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 increased its dividend for 15 consecutive years and Thomson Reuters has increased its dividend for 1 consecutive years.
57.0% of Morningstar shares are owned by institutional investors. Comparatively, 17.3% of Thomson Reuters shares are owned by institutional investors. 39.9% of Morningstar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Thomson Reuters has a net margin of 34.87% compared to Thomson Reuters' net margin of 10.13%. Thomson Reuters' return on equity of 21.79% beat Morningstar's return on equity.
Morningstar currently has a consensus price target of $320.00, suggesting a potential upside of 11.23%. Thomson Reuters has a consensus price target of $164.31, suggesting a potential downside of 2.81%. Given Thomson Reuters' stronger consensus rating and higher probable upside, research analysts clearly believe Morningstar is more favorable than Thomson Reuters.
In the previous week, Morningstar had 16 more articles in the media than Thomson Reuters. MarketBeat recorded 22 mentions for Morningstar and 6 mentions for Thomson Reuters. Morningstar's average media sentiment score of 0.99 beat Thomson Reuters' score of 0.58 indicating that Thomson Reuters is being referred to more favorably in the news media.
Morningstar has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Thomson Reuters has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.
Thomson Reuters has higher revenue and earnings than Morningstar. Thomson Reuters is trading at a lower price-to-earnings ratio than Morningstar, indicating that it is currently the more affordable of the two stocks.
Summary
Morningstar beats Thomson Reuters on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TRI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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