EFX vs MCO

For growth investors, Moody's Corporation (MCO) is the stronger pick with 8.

9% revenue growth year-over-year, versus 6. 9% for Equifax Inc. (EFX). Equifax Inc. (EFX) offers the better valuation at 33. 0x trailing P/E (20. 4x forward), making it the more compelling value choice. Analysts rate Equifax Inc. (EFX) a "Buy" — based on 34 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Equifax Inc.

(EFX) is the cheapest at 33. 0x versus Moody's Corporation at 33. 4x. On forward P/E, Equifax Inc. is actually cheaper at 20. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Moody's Corporation wins at 3. 51x versus Equifax Inc. 's 4. 39x.

Over the past 5 years, Moody's Corporation (MCO) delivered a total return of +41.

4%, compared to -23. 2% for Equifax Inc. (EFX). Over 10 years, the gap is even starker: MCO returned +409. 5% versus EFX's +58. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Moody's Corporation (MCO) is the lower-risk stock at 0.

86β versus Equifax Inc. 's 0. 87β — meaning EFX is approximately 1% more volatile than MCO relative to the S&P 500. On balance sheet safety, Equifax Inc. (EFX) carries a lower debt/equity ratio of 107% versus 175% for Moody's Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Moody's Corporation (MCO) is pulling ahead at 8.

9% versus 6. 9% for Equifax Inc. (EFX). On earnings-per-share growth, the picture is similar: Moody's Corporation grew EPS 21. 4% year-over-year, compared to 9. 9% for Equifax Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Moody's Corporation (MCO) is the more profitable company, earning 31.

9% net margin versus 10. 9% for Equifax Inc. — meaning it keeps 31. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MCO leads at 44. 8% versus 18. 0% for EFX. At the gross margin level — before operating expenses — MCO leads at 68. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Moody's Corporation (MCO) is the more undervalued stock at a PEG of 3. 51x versus Equifax Inc. 's 4. 39x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Equifax Inc. (EFX) trades at 20. 4x forward P/E versus 27. 4x for Moody's Corporation — 7. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EFX: 29. 6% to $227. 60.

All stocks in this comparison pay dividends.

Equifax Inc. (EFX) offers the highest yield at 1. 1%, versus 0. 9% for Moody's Corporation (MCO).

For long-horizon retirement investors, Moody's Corporation (MCO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

86), 0. 9% yield, +409. 5% 10Y return). Both have compounded well over 10 years (MCO: +409. 5%, EFX: +58. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (EFX (Industrials) and MCO (Financial Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.