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MCO vs MS
Which Stock Would AI Choose? Moody's Corporation (MCO) vs. Morgan Stanley (MS) Stock Comparison
Key Takeaways
- Moody's Corporation (MCO) focuses on credit ratings and analytics, while Morgan Stanley (MS) operates across investment banking, wealth management, and trading.
- MS delivered stronger recent performance with a Q2 2026 earnings beat driven by record trading and dealmaking revenue, whereas MCO reported solid Q1 results but showed more limited year-to-date gains.
- MCO stock has underperformed the broader market recently with low single-digit YTD returns, while MS has posted robust double-digit gains amid favorable sector momentum.
- Both companies benefit from financial services exposure, yet MS faces greater sensitivity to market volatility and deal flow, while MCO benefits from recurring subscription-like revenue in ratings and data services.
- MS highlighted AI-related investments in its recent outlook, contrasting with MCO's emphasis on buybacks and strategic partnerships in analytics.
- Relative positioning favors MS for momentum-driven strategies in the current environment, though MCO offers stability tied to credit cycle resilience.
Introduction
Moody's Corporation (MCO) and Morgan Stanley (MS) represent distinct segments within the financial services sector, making them relevant for comparison by investors seeking exposure to credit analytics versus diversified banking and investment activities. Traders monitoring relative performance may examine these stocks to assess how ratings and data businesses respond to economic conditions compared with capital markets and wealth management platforms. This analysis draws on recent market activity to highlight differences in business models, earnings drivers, and positioning without favoring either name. Both tickers appeal to portfolios balancing defensive data services with cyclical financial intermediation.
MCO Overview and Recent Performance
Moody's Corporation (MCO) provides credit ratings, research, and risk analytics primarily through its ratings and analytics segments. In recent weeks, the stock has traded near $510 following mixed broader market sentiment, reflecting limited upside relative to the S&P 500. Q1 2026 results showed record revenue and margins, supported by demand for ratings and data services, with the company outlining approximately $2.5 billion in share buybacks for the full year while maintaining guidance. Sentiment has been influenced by steady recurring revenue streams, though overall market positioning has kept gains modest amid higher interest rates and subdued issuance volumes.
MS Overview and Recent Performance
Morgan Stanley (MS) engages in investment banking, institutional securities, wealth management, and investment management. Recent market activity featured a Q2 2026 earnings beat on July 15, with record revenue from trading and dealmaking amid market volatility. The stock has advanced notably in recent weeks, closing near $215 with year-to-date gains exceeding 22 percent. Positive sentiment stems from strong equity and fixed-income trading, expanded deal activity, and continued focus on AI-related initiatives, positioning the firm favorably within capital markets recovery.
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Head-to-Head Comparison
Business models differ markedly: MCO derives the majority of revenue from ratings and analytics with high margins and recurring characteristics, while MS generates substantial income from trading, advisory, and asset management that correlates more closely with market activity and deal pipelines. Growth drivers for MCO center on data expansion and credit-cycle resilience, whereas MS benefits from capital markets rebound and wealth inflows. Recent momentum has favored MS due to earnings strength and sector rotation into financials. Risk factors include MCO’s exposure to regulatory changes in ratings and MS’s sensitivity to equity market swings and interest-rate environments. Sector exposure places both in financials, yet MCO offers more defensive qualities and MS provides cyclical upside. Market sentiment reflects MS outperformance in the latest reporting period compared with MCO’s steadier but less dynamic trajectory.
Tickeron AI Verdict
Based on observable factors including stronger recent earnings momentum, trading revenue consistency, and favorable positioning within capital markets recovery, Tickeron’s AI would currently assign a higher probabilistic preference to Morgan Stanley (MS) over Moody's Corporation (MCO) for trend-following or momentum-oriented strategies. MCO may appeal in more defensive, stability-focused allocations given its recurring revenue profile. This assessment reflects relative positioning rather than absolute outperformance guarantees.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is MCO is a Hold and MS is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
MCO’s FA Score shows that 1 FA rating(s) are green whileMS’s FA Score has 2 green FA rating(s).
- MCO’s FA Score: 1 green, 4 red.
- MS’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
MCO’s TA Score shows that 5 TA indicator(s) are bullish while MS’s TA Score has 3 bullish TA indicator(s).
- MCO’s TA Score: 5 bullish, 5 bearish.
- MS’s TA Score: 3 bullish, 5 bearish.
Price Growth
MCO (@Financial Publishing/Services) experienced а -0.80% price change this week, while MS (@Investment Banks/Brokers) price change was -4.95% for the same time period.
The average weekly price growth across all stocks in the @Financial Publishing/Services industry was -1.26%. For the same industry, the average monthly price growth was +3.77%, and the average quarterly price growth was -12.91%.
The average weekly price growth across all stocks in the @Investment Banks/Brokers industry was +0.82%. For the same industry, the average monthly price growth was -6.79%, and the average quarterly price growth was -16.23%.
Reported Earning Dates
MCO is expected to report earnings on Jul 22, 2026.
MS is expected to report earnings on Oct 14, 2026.
Industries' Descriptions
@Financial Publishing/Services (-1.26% weekly)The financial publishing /services sector includes companies that provide informational products and services that are of value to investors, financial/analytics professionals and other interested readers. The products include real-time stock quotes, financial news and analyses. Think S&P Global, Inc., Moody`s Corporation, Thomson-Reuters Corp and IHS Markit Ltd. Information is critical in making financial or investment decisions, and what makes this industry’s output relevant at all times, across various economic conditions.
@Investment Banks/Brokers (+0.82% weekly)These banks specialize in underwriting (helping companies with debt financing or equity issuances), IPOs, facilitating mergers and other corporate reorganizations and acting as a broker or financial advisor for institutions. They might also trade securities on their own accounts. Investment banks potentially thrive on expanding its network of clients, since that could help them increase profits. Goldman Sachs, Morgan Stanley and CME Group Inc are some of the largest investment banking companies.
| MCO | MS | MCO / MS | |
| Capitalization | 85.7B | 340B | 25% |
| EBITDA | 3.96B | N/A | - |
| Gain YTD | -3.493 | 23.225 | -15% |
| P/E Ratio | 35.21 | 17.48 | 201% |
| Revenue | 7.87B | 68.8B | 11% |
| Total Cash | 1.51B | 4.29B | 35% |
| Total Debt | 7.31B | 394B | 2% |
MCO | MS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 22 | 64 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 84 Overvalued | 87 Overvalued | |
PROFIT vs RISK RATING 1..100 | 53 | 6 | |
SMR RATING 1..100 | 15 | 7 | |
PRICE GROWTH RATING 1..100 | 46 | 44 | |
P/E GROWTH RATING 1..100 | 71 | 38 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
MCO's Valuation (84) in the Financial Publishing Or Services industry is in the same range as MS (87) in the Investment Banks Or Brokers industry. This means that MCO’s stock grew similarly to MS’s over the last 12 months.
MS's Profit vs Risk Rating (6) in the Investment Banks Or Brokers industry is somewhat better than the same rating for MCO (53) in the Financial Publishing Or Services industry. This means that MS’s stock grew somewhat faster than MCO’s over the last 12 months.
MS's SMR Rating (7) in the Investment Banks Or Brokers industry is in the same range as MCO (15) in the Financial Publishing Or Services industry. This means that MS’s stock grew similarly to MCO’s over the last 12 months.
MS's Price Growth Rating (44) in the Investment Banks Or Brokers industry is in the same range as MCO (46) in the Financial Publishing Or Services industry. This means that MS’s stock grew similarly to MCO’s over the last 12 months.
MS's P/E Growth Rating (38) in the Investment Banks Or Brokers industry is somewhat better than the same rating for MCO (71) in the Financial Publishing Or Services industry. This means that MS’s stock grew somewhat faster than MCO’s over the last 12 months.
| MCO | MS | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 67% | 1 day ago 57% |
| Stochastic ODDS (%) | 1 day ago 49% | 1 day ago 66% |
| Momentum ODDS (%) | 1 day ago 49% | 1 day ago 55% |
| MACD ODDS (%) | 1 day ago 62% | 1 day ago 55% |
| TrendWeek ODDS (%) | 1 day ago 51% | 1 day ago 55% |
| TrendMonth ODDS (%) | 1 day ago 54% | 1 day ago 54% |
| Advances ODDS (%) | 7 days ago 59% | 8 days ago 65% |
| Declines ODDS (%) | 1 day ago 52% | 3 days ago 58% |
| BollingerBands ODDS (%) | 1 day ago 54% | 1 day ago 55% |
| Aroon ODDS (%) | 1 day ago 61% | 1 day ago 50% |
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MCO and
Correlation & Price change
A.I.dvisor indicates that over the last year, MCO has been closely correlated with SPGI. These tickers have moved in lockstep 88% of the time. This A.I.-generated data suggests there is a high statistical probability that if MCO jumps, then SPGI could also see price increases.
| Ticker / NAME | Correlation To MCO | 1D Price Change % | ||
|---|---|---|---|---|
| MCO | 100% | -2.89% | ||
| SPGI - MCO | 88% Closely correlated | -3.81% | ||
| MSCI - MCO | 67% Closely correlated | -10.14% | ||
| JEF - MCO | 66% Closely correlated | +2.83% | ||
| SF - MCO | 66% Loosely correlated | +0.18% | ||
| GS - MCO | 66% Loosely correlated | +2.89% | ||
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