Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, investment research provider Morningstar (Nasdaq: MORN ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks woefully lag the market average.
With that in mind, let's take a closer look at Morningstar's business, and see what CAPS investors are saying about the stock right now.
Morningstar facts
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Headquarters (founded)
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Chicago (1984)
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Market Cap
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$1.60 billion
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Industry
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Publishing/Asset Management
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TTM Revenue
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$501.3 million
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Management
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Founder/CEO Joe Mansueto
CFO Scott Cooley
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Return on Equity (average, last three years)
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22.7%
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Competitors
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Thomson Reuters (NYSE: TRI ) ,
Yahoo! (Nasdaq: YHOO )
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CAPS members bullish on MORN also bullish on:
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Apple (Nasdaq: AAPL ) ,
Marvel Entertainment (NYSE: MVL )
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CAPS members bearish on MORN also bearish on:
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Google (Nasdaq: GOOG ) ,
Microsoft (Nasdaq: MSFT )
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Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 172 of the 181 All-Star members who have rated Morningstar -- or 95% -- believe the stock will outperform the S&P 500 going forward. These bulls include TMFConan and awesomestockdude, both of whom are ranked in the top 20% of our community.
Last week, TMFConan noted that Morningstar is "One of the few strong, mid-cap financial services companies left. Strong brand, cash rich and profitable in this env. Seems like a winner."
In a more extensive pitch from three weeks ago, awesomestockdude asks and answers several constructive questions to get a full view of Morningstar. Below are two, but be sure to check out the entire analysis here:
1. Are the quantitative qualities about the business strong?
These qualities would cover things with numbers such as growth rates, ratios, cash, etc. These parts of the company look good. They have great margins, no debt, plenty of cash, and have great growth rates. If I was basing everything on these type qualities, I would say Morningstar is a screaming buy. …
2. Do they believe in the company by owning there own shares?
This is a no brainer. Insiders own over 60% of the shares themselves. CEO, Joe Mansueto owns the most shares out of everybody. He owns 27,479,954 shares of Morningstar. This obviously shows that they believe in the company. If the people that know the company better than anybody else own a lot of shares, maybe we should too.
What do you think about Morningstar, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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