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MORN vs SCHW
Which Stock Would AI Choose? Morningstar (MORN) vs. Charles Schwab (SCHW) Stock Comparison
Key Takeaways
- Morningstar (MORN) is a mid-cap investment research and data provider, while Charles Schwab (SCHW) is a large-cap brokerage and wealth-management platform, making this a comparison of very different business models.
- Both names trade at similar trailing valuations, but SCHW carries a meaningfully lower forward earnings multiple and a higher dividend yield.
- Recent momentum has diverged: SCHW is up roughly 9% year to date, while MORN has gained a more modest amount despite strong quarterly results.
- SCHW is levered to trading volumes and interest rates, whereas MORN is tied to institutional data subscriptions and long-term research demand.
- Neither stock has fully recovered to its 52-week high, leaving both well below prior peaks in recent market activity.
Introduction
Investors comparing MORN and SCHW are effectively weighing two distinct corners of the financial-services industry. Morningstar is a Chicago-based provider of independent investment research, ratings, and data products, while Charles Schwab operates one of the largest retail brokerage and wealth-management franchises in the United States. This stock comparison is most relevant to investors assessing relative performance, market positioning, and growth drivers within the broader financial sector. For traders, the contrast also matters: Morningstar offers a steadier, subscription-driven profile, whereas Schwab is more sensitive to market activity, client asset flows, and the interest-rate environment.
MORN Overview and Recent Performance
MORN, or Morningstar, Inc., generates revenue across five reportable segments, including the Morningstar Direct Platform, PitchBook, Morningstar Credit, Morningstar Wealth, and Morningstar Retirement. The company monetizes proprietary research and data, with the United States as its largest geographic market.
In recent market activity, the stock has traded in a range well below its 52-week high, with a market capitalization of roughly $7.7 billion. Morningstar reported second-quarter 2026 revenue of about $663 million, up approximately 7% year over year, alongside notable gains in adjusted earnings per share. Earlier in the year, first-quarter revenue rose roughly 11% and diluted EPS jumped about 50%. These results reflect steady margin expansion, though sentiment has also been shaped by insider selling activity and a stock price that has lagged the broader market's year-to-date advance. Analysts continue to rate the shares favorably, with a consensus price target above recent trading levels ahead of the company's late-October earnings report.
SCHW Overview and Recent Performance
SCHW, The Charles Schwab Corporation, is a leading brokerage, banking, and wealth-management company headquartered in Westlake, Texas. Its results are driven by trading revenue, net interest income, asset-management fees, and net client asset flows.
In its most recent quarter, Schwab reported adjusted earnings per share of $1.69, up roughly 29% year over year, on revenue of about $7.17 billion, up approximately 17%. Total client assets reached $13.33 trillion, and net new assets came in above analyst expectations. The firm also added roughly 1.2 million new brokerage accounts, bringing its total to about 48.6 million. Despite the broadly strong figures, the shares declined after the report, reflecting investor focus on slightly softer revenue relative to consensus and the stock's earlier pullback from its 2026 high. The company has also expanded its presence by listing on the Texas Stock Exchange and launching an AI-powered assistant for clients, signaling continued investment in technology and distribution.
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Head-to-Head Comparison
The core contrast between these two companies lies in how they earn money. Morningstar is an information and analytics business with a subscription-driven revenue base, meaning its growth is tied to institutional budgets and product adoption. Charles Schwab is a transaction and asset-gathering business, making it more sensitive to retail trading volumes, client asset levels, and net interest income (the spread between interest earned on assets and interest paid on deposits).
On valuation, SCHW trades at a forward price-to-earnings ratio near 12 and offers a dividend yield of roughly 1.4%, while MORN carries a forward multiple in the mid-teens and a yield near 1%. On profitability, Morningstar's return on equity (ROE, a measure of profit generated per dollar of shareholder equity) has been exceptionally high, whereas Schwab operates with a much larger balance sheet and lower return on assets. Risk profiles also differ: Schwab faces rate-cycle and market-volatility exposure, while Morningstar faces execution risk in its data platforms and any slowdown in institutional technology spending. Recent momentum has favored Schwab, but Morningstar's steadier earnings cadence offers a different risk-reward trade-off.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely lean toward Charles Schwab (SCHW) in the current environment. The company's combination of accelerating earnings growth, robust net new asset inflows, a lower forward valuation, and a higher dividend yield presents a more favorable trend and catalyst profile. Morningstar's consistent execution and subscription resilience remain attractive, but its relative performance and premium forward multiple suggest less immediate upside momentum. That said, this is a probabilistic assessment rather than a definitive forecast: Schwab's sensitivity to trading activity and interest rates introduces volatility that could shift the balance quickly. Traders seeking confirmation of directional trends may benefit from monitoring AI-driven signals across both tickers before acting.
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 MORN is a Buy and SCHW is a Buy.
MORN in upward trend: 10-day moving average broke above 50-day moving average on October 19, 2026
The 10-day moving average for MORN crossed bullishly above the 50-day moving average on October 19, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 14 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 78%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 06, 2026. You may want to consider a long position or call options on MORN as a result. In 50 of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 57%.
The Moving Average Convergence Divergence (MACD) for MORN just turned positive on October 07, 2026. Looking at past instances where MORN's MACD turned positive, the stock continued to rise in 24 of 46 cases over the following month. The odds of a continued upward trend are 52%.
MORN moved above its 50-day moving average on October 08, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +5.46% 3-day Advance, the price is estimated to grow further. Considering data from situations where MORN advanced for three days, in 168 of 305 cases, the price rose further within the following month. The odds of a continued upward trend are 55%.
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MORN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 62%.
MORN broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for MORN entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 31 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 40 (best 1 - 100 worst), indicating fairly steady price growth. MORN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 54 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 71 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.183) is normal, around the industry mean (4.019). P/E Ratio (21.109) is within average values for comparable stocks, (17.786). Projected Growth (PEG Ratio) (0.770) is also within normal values, averaging (1.780). Dividend Yield (0.009) settles around the average of (0.019) among similar stocks. MORN's P/S Ratio (3.171) is slightly lower than the industry average of (7.166).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. MORN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock worse than average.
SCHW's Stochastic Oscillator remains in oversold zone for 3 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where SCHW's RSI Oscillator exited the oversold zone, 24 of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 71%.
Following a +2.30% 3-day Advance, the price is estimated to grow further. Considering data from situations where SCHW advanced for three days, in 185 of 320 cases, the price rose further within the following month. The odds of a continued upward trend are 58%.
SCHW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for SCHW turned negative on October 15, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 24 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 50%.
SCHW moved below its 50-day moving average on September 22, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SCHW crossed bearishly below the 50-day moving average on September 21, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 64%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SCHW declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 59%.
The Aroon Indicator for SCHW entered a downward trend on October 22, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 5 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating steady price growth. SCHW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 69 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SCHW’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 71 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 88 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.599) is normal, around the industry mean (3.532). P/E Ratio (16.565) is within average values for comparable stocks, (8.846). Projected Growth (PEG Ratio) (0.832) is also within normal values, averaging (0.809). Dividend Yield (0.014) settles around the average of (7.708) among similar stocks. P/S Ratio (7.148) is also within normal values, averaging (16.763).
MORN | SCHW | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 23 | 62 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 88 Overvalued | |
PROFIT vs RISK RATING 1..100 | 100 | 69 | |
SMR RATING 1..100 | 31 | 5 | |
PRICE GROWTH RATING 1..100 | 40 | 61 | |
P/E GROWTH RATING 1..100 | 54 | 71 | |
SEASONALITY SCORE 1..100 | n/a | 75 |
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.
MORN's Valuation (71) in the Financial Publishing Or Services industry is in the same range as SCHW (88) in the Investment Banks Or Brokers industry. This means that MORN’s stock grew similarly to SCHW’s over the last 12 months.
SCHW's Profit vs Risk Rating (69) in the Investment Banks Or Brokers industry is in the same range as MORN (100) in the Financial Publishing Or Services industry. This means that SCHW’s stock grew similarly to MORN’s over the last 12 months.
SCHW's SMR Rating (5) in the Investment Banks Or Brokers industry is in the same range as MORN (31) in the Financial Publishing Or Services industry. This means that SCHW’s stock grew similarly to MORN’s over the last 12 months.
MORN's Price Growth Rating (40) in the Financial Publishing Or Services industry is in the same range as SCHW (61) in the Investment Banks Or Brokers industry. This means that MORN’s stock grew similarly to SCHW’s over the last 12 months.
MORN's P/E Growth Rating (54) in the Financial Publishing Or Services industry is in the same range as SCHW (71) in the Investment Banks Or Brokers industry. This means that MORN’s stock grew similarly to SCHW’s over the last 12 months.
| MORN | SCHW | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 59% | 2 days ago 71% |
| Stochastic ODDS (%) | 2 days ago 63% | 2 days ago 73% |
| Momentum ODDS (%) | 2 days ago 57% | N/A |
| MACD ODDS (%) | 2 days ago 52% | 2 days ago 50% |
| TrendWeek ODDS (%) | 2 days ago 53% | 2 days ago 60% |
| TrendMonth ODDS (%) | 2 days ago 52% | 2 days ago 62% |
| Advances ODDS (%) | 2 days ago 55% | 3 days ago 58% |
| Declines ODDS (%) | 5 days ago 62% | 5 days ago 59% |
| BollingerBands ODDS (%) | 2 days ago 63% | 2 days ago 71% |
| Aroon ODDS (%) | 2 days ago 70% | 2 days ago 60% |
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 overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
MORN’s FA Score shows that 1 FA rating(s) are green while SCHW’s FA Score has 1 green FA rating(s).
- MORN’s FA Score: 1 green, 4 red.
- SCHW’s FA Score: 1 green, 4 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.
MORN’s TA Score shows that 5 TA indicator(s) are bullish while SCHW’s TA Score has 4 bullish TA indicator(s).
- MORN’s TA Score: 5 bullish, 5 bearish.
- SCHW’s TA Score: 4 bullish, 5 bearish.
Price Growth
MORN (@Financial Publishing/Services) experienced а +6.73% price change this week, while SCHW (@Investment Banks/Brokers) price change was -2.89% for the same time period.
The average weekly price growth across all stocks in the @Financial Publishing/Services industry was +4.45%. For the same industry, the average monthly price growth was +5.70%, and the average quarterly price growth was +8.79%.
The average weekly price growth across all stocks in the @Investment Banks/Brokers industry was -3.04%. For the same industry, the average monthly price growth was -16.45%, and the average quarterly price growth was -16.40%.
Reported Earning Dates
MORN is expected to report earnings on Oct 28, 2026.
SCHW is expected to report earnings on Jan 19, 2027.
Industries' Descriptions
@Financial Publishing/Services (+4.45% 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 (-3.04% 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.
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MORN and
Correlation & Price change
A.I.dvisor indicates that over the last year, MORN has been loosely correlated with JEF. These tickers have moved in lockstep 64% of the time. This A.I.-generated data suggests there is some statistical probability that if MORN jumps, then JEF could also see price increases.
| Ticker / NAME | Correlation To MORN | 1D Price Change % | ||
|---|---|---|---|---|
| MORN | 100% | +4.46% | ||
| JEF - MORN | 64% Loosely correlated | +1.35% | ||
| SF - MORN | 63% Loosely correlated | +2.17% | ||
| PIPR - MORN | 63% Loosely correlated | +1.77% | ||
| SPGI - MORN | 63% Loosely correlated | +2.24% | ||
| GS - MORN | 62% Loosely correlated | -1.48% | ||
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SCHW and
Correlation & Price change
A.I.dvisor indicates that over the last year, SCHW has been closely correlated with RJF. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if SCHW jumps, then RJF could also see price increases.
| Ticker / NAME | Correlation To SCHW | 1D Price Change % | ||
|---|---|---|---|---|
| SCHW | 100% | -0.22% | ||
| RJF - SCHW | 72% Closely correlated | +2.25% | ||
| LPLA - SCHW | 68% Closely correlated | -0.68% | ||
| NDAQ - SCHW | 62% Loosely correlated | +7.47% | ||
| MORN - SCHW | 57% Loosely correlated | +4.46% | ||
| SPGI - SCHW | 56% Loosely correlated | +2.24% | ||
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