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MORN vs SCHW
Which Stock Would AI Choose? Morningstar, Inc. (MORN) vs. Charles Schwab Corporation (SCHW) Stock Comparison
Key Takeaways
- Morningstar, Inc. (MORN) has delivered stronger year-to-date performance of approximately 18% compared to Charles Schwab Corporation (SCHW)'s 9%.
- SCHW reported record Q1 2026 revenues of $6.48 billion, up 16% year-over-year, driven by client growth and trading activity.
- MORN boasts a higher return on equity (ROE - a measure of profitability relative to shareholders' equity) at 26% versus SCHW's 19%.
- SCHW's market capitalization exceeds $159 billion, dwarfing MORN's $6.8 billion, reflecting its dominant scale in brokerage services.
- Both stocks trade at similar trailing P/E ratios around 18-20, but SCHW shows higher profit margins at nearly 38%.
- Recent momentum favors MORN with monthly gains amid market shifts, while SCHW faced post-earnings pressure despite beats.
Introduction
This comparison examines MORN, a leading provider of independent investment research and data analytics, against SCHW, a major brokerage and wealth management firm. Both operate in the financial services sector but differ in focus: MORN emphasizes subscription-based tools for investors, while SCHW relies on trading, banking, and advisory services. Traders seeking exposure to fintech innovation and brokers navigating interest rate sensitivity, as well as long-term investors evaluating relative performance and growth drivers, will find this analysis valuable for understanding their market positioning in recent activity.
MORN Overview and Recent Performance
Morningstar, Inc. (MORN) delivers investment research, ratings, and data platforms used by financial professionals and individual investors worldwide. Its business model centers on recurring revenue from subscriptions and licensing. In recent market activity, shares have exhibited resilience, posting year-to-date gains around 18% and monthly increases of over 12% despite broader volatility. Sentiment has been influenced by strategic moves like refocusing on core data services after exiting non-core units and announcing award winners for its annual funds recognition, signaling sustained demand for its analytics amid rising interest in AI-driven insights. With a P/E ratio of about 20 and ROE of 26%, MORN reflects solid profitability, though higher debt-to-equity at 103% warrants monitoring in fluctuating rates.
SCHW Overview and Recent Performance
The Charles Schwab Corporation (SCHW) offers brokerage, banking, and advisory services to millions of clients, managing vast assets under management (AUM - total value of investments overseen). Revenue streams include net interest income (NII - earnings from loans minus interest paid on deposits) and trading commissions. Recent quarters highlighted record Q1 2026 results with $6.48 billion in revenue, up 16% year-over-year, fueled by 39 million active accounts and strong client engagement. However, shares dipped post-earnings despite beating EPS estimates at $1.43, reflecting market focus on future rate paths and competition. Year-to-date performance stands at about 9%, with a P/E near 18 and ROE of 19%, supported by lower debt-to-equity of 67% and high profit margins.
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Head-to-Head Comparison
MORN and SCHW diverge in business models: MORN's subscription-driven data services provide steadier revenue less tied to market cycles, contrasting SCHW's sensitivity to trading volumes and NII amid rate changes. Growth drivers highlight SCHW's edge in scale, with quarterly revenue up 16% and client accounts surging, versus MORN's 8.5% revenue growth focused on analytics expansion. Recent momentum tilts to MORN's stronger YTD and monthly gains, while SCHW shows stability post-earnings. Risk factors include MORN's higher leverage (debt/equity 103%) versus SCHW's diversified AUM and crypto initiatives. Sector exposure positions both in financials, but SCHW faces more competition from fintech disruptors. Market sentiment favors SCHW's catalysts like AI enhancements, though MORN benefits from demand for research tools.
Tickeron AI Verdict
Tickeron's AI currently favors SCHW with higher probability due to its massive scale, record earnings momentum, robust client growth, and forward catalysts like crypto trading expansion, positioning it for relative outperformance in a trading-oriented environment. MORN remains compelling for stability in data services, but SCHW's trends suggest greater upside potential probabilistically.
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. Disclaimers and Limitations
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.
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).
MORN’s FA Score shows that 2 FA rating(s) are green whileSCHW’s FA Score has 1 green FA rating(s).
- MORN’s FA Score: 2 green, 3 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 4 TA indicator(s) are bullish while SCHW’s TA Score has 5 bullish TA indicator(s).
- MORN’s TA Score: 4 bullish, 6 bearish.
- SCHW’s TA Score: 5 bullish, 4 bearish.
Price Growth
MORN (@Financial Publishing/Services) experienced а -11.39% price change this week, while SCHW (@Investment Banks/Brokers) price change was +1.19% for the same time period.
The average weekly price growth across all stocks in the @Financial Publishing/Services industry was -4.86%. For the same industry, the average monthly price growth was -6.55%, and the average quarterly price growth was -18.94%.
The average weekly price growth across all stocks in the @Investment Banks/Brokers industry was -1.86%. For the same industry, the average monthly price growth was -2.38%, and the average quarterly price growth was -6.22%.
Reported Earning Dates
MORN is expected to report earnings on Jul 29, 2026.
SCHW is expected to report earnings on Jul 21, 2026.
Industries' Descriptions
@Financial Publishing/Services (-4.86% 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 (-1.86% 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.
| MORN | SCHW | MORN / SCHW | |
| Capitalization | 5.83B | 160B | 4% |
| EBITDA | 773M | N/A | - |
| Gain YTD | -29.033 | -7.244 | 401% |
| P/E Ratio | 15.69 | 18.30 | 86% |
| Revenue | 2.51B | 24.8B | 10% |
| Total Cash | 532M | N/A | - |
| Total Debt | 1.91B | 33.1B | 6% |
MORN | SCHW | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 70 | 13 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 19 Undervalued | 80 Overvalued | |
PROFIT vs RISK RATING 1..100 | 100 | 68 | |
SMR RATING 1..100 | 33 | 7 | |
PRICE GROWTH RATING 1..100 | 79 | 58 | |
P/E GROWTH RATING 1..100 | 93 | 81 | |
SEASONALITY SCORE 1..100 | 85 | 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.
MORN's Valuation (19) in the Financial Publishing Or Services industry is somewhat better than the same rating for SCHW (80) in the Investment Banks Or Brokers industry. This means that MORN’s stock grew somewhat faster than SCHW’s over the last 12 months.
SCHW's Profit vs Risk Rating (68) 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 (7) in the Investment Banks Or Brokers industry is in the same range as MORN (33) 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 Price Growth Rating (58) in the Investment Banks Or Brokers industry is in the same range as MORN (79) 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 P/E Growth Rating (81) in the Investment Banks Or Brokers industry is in the same range as MORN (93) in the Financial Publishing Or Services industry. This means that SCHW’s stock grew similarly to MORN’s over the last 12 months.
| MORN | SCHW | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 59% | 2 days ago 44% |
| Stochastic ODDS (%) | 2 days ago 63% | 2 days ago 52% |
| Momentum ODDS (%) | 2 days ago 64% | 2 days ago 59% |
| MACD ODDS (%) | 2 days ago 64% | 2 days ago 67% |
| TrendWeek ODDS (%) | 2 days ago 58% | 2 days ago 60% |
| TrendMonth ODDS (%) | 2 days ago 59% | 2 days ago 60% |
| Advances ODDS (%) | 14 days ago 55% | 7 days ago 56% |
| Declines ODDS (%) | 2 days ago 59% | 21 days ago 60% |
| BollingerBands ODDS (%) | 2 days ago 53% | 2 days ago 55% |
| Aroon ODDS (%) | 2 days ago 67% | N/A |
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MORN and
Correlation & Price change
A.I.dvisor indicates that over the last year, MORN has been closely correlated with FDS. These tickers have moved in lockstep 75% of the time. This A.I.-generated data suggests there is a high statistical probability that if MORN jumps, then FDS could also see price increases.
| Ticker / NAME | Correlation To MORN | 1D Price Change % | ||
|---|---|---|---|---|
| MORN | 100% | -0.18% | ||
| FDS - MORN | 75% Closely correlated | -1.21% | ||
| JEF - MORN | 64% Loosely correlated | +1.14% | ||
| SF - MORN | 63% Loosely correlated | +0.37% | ||
| SPGI - MORN | 63% Loosely correlated | -0.86% | ||
| PIPR - MORN | 63% Loosely correlated | -0.04% | ||
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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% | +0.36% | ||
| RJF - SCHW | 72% Closely correlated | +0.51% | ||
| LPLA - SCHW | 68% Closely correlated | +1.25% | ||
| NDAQ - SCHW | 62% Loosely correlated | +0.45% | ||
| MORN - SCHW | 57% Loosely correlated | -0.18% | ||
| SPGI - SCHW | 56% Loosely correlated | -0.86% | ||
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