Can MSCI Outrun Moodys in the Next Rally?
Moodys surged 5.6% during the past trading day. You may be tempted to buy more or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer MSCI gives you more. MSCI (MSCI) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Moodys (MCO) stock, suggesting you may be better off investing in MSCI
- MSCI’s last 12 months revenue growth was 9.0%, vs. MCO’s 8.8%.
- In addition, its last 3-year average revenue growth came in at 11.2%, ahead of MCO’s 9.8%.
- MSCI leads on profitability over both periods – LTM margin of 54.2% and 3-year average of 54.1%.
These differences become even clearer when you look at the financials side by side. The table highlights how MCO’s fundamentals stack up against those of MSCI on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| MCO | MSCI | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 28.7 | 26.7 | MSCI |
| Revenue Growth | |||
| Last Quarter | 10.7% | 9.5% | MCO |
| Last 12 Months | 8.8% | 9.0% | MSCI |
| Last 3 Year Average | 9.8% | 11.2% | MSCI |
| Operating Margins | |||
| Last 12 Months | 43.8% | 54.2% | MSCI |
| Last 3 Year Average | 40.7% | 54.1% | MSCI |
| Momentum | |||
| Last 3 Year Return | 95.3% | 30.3% | MCO |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: MCO Revenue Comparison | MSCI Revenue Comparison
See more margin details: MCO Operating Income Comparison | MSCI Operating Income Comparison
See detailed fundamentals on Buy or Sell MSCI Stock and Buy or Sell MCO Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| MCO Return | 36% | -28% | 42% | 22% | 9% | -2% | 80% | ||
| MSCI Return | 38% | -23% | 23% | 7% | -3% | -1% | 33% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 1% | 84% | <=== | |
| Monthly Win Rates [3] | |||||||||
| MCO Win Rate | 67% | 33% | 67% | 58% | 67% | 0% | 49% | ||
| MSCI Win Rate | 58% | 42% | 42% | 50% | 42% | 0% | 39% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 65% | <=== | ||
| Max Drawdowns [4] | |||||||||
| MCO Max Drawdown | -9% | -39% | -1% | -6% | -16% | -2% | -12% | ||
| MSCI Max Drawdown | -12% | -38% | -1% | -21% | -15% | -1% | -15% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | 0% | -7% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 1/5/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read MCO Dip Buyer Analyses to see how the stock has fallen and recovered in the past.
Still not sure about MCO or MSCI? Consider a portfolio approach.
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Markets move differently, but a mix of assets smooths volatility. A multi asset portfolio keeps you invested and reduces the impact of sharp drops in any single area.
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