Morningstar (NASDAQ: MORN) and CoreLogic (NYSE:CLGX) are both mid-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Insider and Institutional Ownership

38.3% of Morningstar shares are held by institutional investors. Comparatively, 88.2% of CoreLogic shares are held by institutional investors. 57.4% of Morningstar shares are held by insiders. Comparatively, 1.2% of CoreLogic shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Morningstar pays an annual dividend of $0.92 per share and has a dividend yield of 1.1%. CoreLogic does not pay a dividend. Morningstar pays out 24.1% of its earnings in the form of a dividend.

Volatility and Risk

Morningstar has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, CoreLogic has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Profitability

This table compares Morningstar and CoreLogic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Morningstar 19.43% 15.55% 8.52%
CoreLogic 4.99% 17.07% 4.48%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Morningstar and CoreLogic, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Morningstar 0 0 0 0 N/A
CoreLogic 1 3 3 0 2.29

CoreLogic has a consensus target price of $44.14, indicating a potential downside of 6.06%. Given CoreLogic’s higher probable upside, analysts clearly believe CoreLogic is more favorable than Morningstar.

Valuation and Earnings

This table compares Morningstar and CoreLogic’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Morningstar $847.00 million 4.09 $228.30 million $3.82 21.34
CoreLogic $1.91 billion 2.07 $404.81 million $1.09 43.11

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

Summary

CoreLogic beats Morningstar on 8 of the 15 factors compared between the two stocks.

Morningstar Company Profile

Morningstar, Inc. is a provider of independent investment research in North America, Europe, Australia, and Asia. The Company focuses to create products that help investors reach their financial goals. It offers a range of data, software, research, and investment management offerings for financial advisors, asset managers, sponsors, and individual investors. It provides data and research insights on a range of investment offerings, including managed investment products, listed companies, capital markets, and real-time global market data. It conducts its business operations outside of the United States through subsidiaries in countries, including Australia, Brazil, Canada, Chile, Denmark, France, Germany, India, Italy, Japan, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, People’s Republic of China (both Hong Kong and the mainland), Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, the United Arab Emirates, and the United Kingdom.

CoreLogic Company Profile

CoreLogic, Inc. is a provider of property information, analytics and data-enabled services. The Company provides detailed coverage of property, mortgages and other encumbrances, property risk and replacement cost, consumer credit, tenancy, location, hazard risk and related performance information. Its segments include Property Intelligence (PI), Risk Management and Work Flow (RMW), and Corporate. The Property Intelligence segment owns or licenses real property, mortgage and consumer information, which includes loan information, property sales and characteristic information, property risk and replacement cost, natural hazard data, geospatial data, parcel maps and mortgage-backed securities information. The RMW segment owns or licenses real property information, mortgage information and consumer information, which includes loan information, property sales and characteristic information, natural hazard data, parcel maps, employment verification, criminal records and eviction records.

Receive News & Ratings for Morningstar Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Morningstar Inc. and related companies with MarketBeat.com's FREE daily email newsletter.