IT vs MCO vs SPGI vs FDS

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

9% revenue growth year-over-year, versus 3. 7% for Gartner, Inc. (IT). FactSet Research Systems Inc. (FDS) offers the better valuation at 14. 4x trailing P/E (12. 6x forward), making it the more compelling value choice. Analysts rate Moody's Corporation (MCO) a "Buy" — based on 32 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, FactSet Research Systems Inc.

(FDS) is the cheapest at 14. 4x versus Moody's Corporation at 33. 4x. On forward P/E, Gartner, Inc. is actually cheaper at 11. 9x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Gartner, Inc. wins at 0. 45x versus Moody's Corporation's 3. 51x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

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

4%, compared to -32. 5% for Gartner, Inc. (IT). Over 10 years, the gap is even starker: MCO returned +409. 5% versus IT's +64. 6%. 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), FactSet Research Systems Inc.

(FDS) is the lower-risk stock at 0. 43β versus Gartner, Inc. 's 0. 94β — meaning IT is approximately 116% more volatile than FDS relative to the S&P 500. On balance sheet safety, S&P Global Inc. (SPGI) carries a lower debt/equity ratio of 39% versus 11% for Gartner, Inc. — 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 3. 7% for Gartner, Inc. (IT). On earnings-per-share growth, the picture is similar: Moody's Corporation grew EPS 21. 4% year-over-year, compared to -39. 7% for Gartner, 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 11. 2% for Gartner, 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 15. 8% for IT. At the gross margin level — before operating expenses — SPGI leads at 70. 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, Gartner, Inc. (IT) is the more undervalued stock at a PEG of 0. 45x versus Moody's Corporation's 3. 51x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Gartner, Inc. (IT) trades at 11. 9x forward P/E versus 27. 4x for Moody's Corporation — 15. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SPGI: 27. 9% to $548. 11.

In this comparison, FDS (1.

9% yield), SPGI (0. 9% yield), MCO (0. 9% yield) pay a dividend. IT does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, S&P Global Inc.

(SPGI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 58), 0. 9% yield, +337. 1% 10Y return). Both have compounded well over 10 years (SPGI: +337. 1%, IT: +64. 6%), 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 (IT (Technology) and MCO (Financial Services) and SPGI (Financial Services) and FDS (Financial Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: IT is a mid-cap deep-value stock; MCO is a mid-cap quality compounder stock; SPGI is a mid-cap quality compounder stock; FDS is a small-cap deep-value stock. MCO, SPGI, FDS pay a dividend while IT does not, making them suitable for different income and tax situations. 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.