TRI vs MCO

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

9% revenue growth year-over-year, versus 4. 8% for Thomson Reuters Corporation (TRI). Thomson Reuters Corporation (TRI) offers the better valuation at 28. 1x trailing P/E (20. 8x forward), making it the more compelling value choice. Analysts rate Thomson Reuters Corporation (TRI) a "Buy" — based on 27 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, Thomson Reuters Corporation (TRI) is the cheapest at 28.

1x versus Moody's Corporation at 33. 3x. On forward P/E, Thomson Reuters Corporation is actually cheaper at 20. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Thomson Reuters Corporation wins at 2. 78x versus Moody's Corporation's 3. 44x.

Over the past 5 years, Moody's Corporation (MCO) delivered a total return of +43.

1%, compared to +9. 2% for Thomson Reuters Corporation (TRI). Over 10 years, the gap is even starker: MCO returned +401. 6% versus TRI's +153. 1%. 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), Thomson Reuters Corporation (TRI) is the lower-risk stock at 0.

38β versus Moody's Corporation's 0. 86β — meaning MCO is approximately 129% more volatile than TRI relative to the S&P 500. On balance sheet safety, Thomson Reuters Corporation (TRI) carries a lower debt/equity ratio of 18% 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 4. 8% for Thomson Reuters Corporation (TRI). On earnings-per-share growth, the picture is similar: Moody's Corporation grew EPS 21. 4% year-over-year, compared to -30. 5% for Thomson Reuters Corporation. 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 20. 1% for Thomson Reuters Corporation — 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 26. 3% for TRI. 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, Thomson Reuters Corporation (TRI) is the more undervalued stock at a PEG of 2. 78x versus Moody's Corporation's 3. 44x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Thomson Reuters Corporation (TRI) trades at 20. 8x forward P/E versus 26. 9x for Moody's Corporation — 6. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TRI: 54. 2% to $147. 10.

All stocks in this comparison pay dividends.

Thomson Reuters Corporation (TRI) offers the highest yield at 2. 5%, versus 0. 9% for Moody's Corporation (MCO).

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

38), 2. 5% yield, +153. 1% 10Y return). Both have compounded well over 10 years (TRI: +153. 1%, MCO: +401. 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 (TRI (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.