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MCO vs PNC

MCO
Moody's Corporation
BULLISH
Price
$479.48
Market Cap
$87.55B
Sector
Financial Services
AI Confidence
92%
PNC
The PNC Financial Services Group, Inc.
NEUTRAL
Price
$209.88
Market Cap
$84.86B
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
MCO
38.61
PNC
12.66
Forward P/E
MCO
36.0
PNC
10.17
P/B Ratio
MCO
21.62
PNC
1.49
P/S Ratio
MCO
11.67
PNC
3.8
EV/EBITDA
MCO
25.39
PNC
--

Profitability

Gross Margin
MCO
73.75%
PNC
0.0%
Operating Margin
MCO
46.89%
PNC
39.26%
Profit Margin
MCO
29.92%
PNC
31.08%
ROE
MCO
54.91%
PNC
12.16%
ROA
MCO
13.19%
PNC
1.23%

Growth

Revenue Growth
MCO
10.7%
PNC
9.6%
Earnings Growth
MCO
22.9%
PNC
29.1%

Financial Health

Debt/Equity
MCO
1.81
PNC
--
Current Ratio
MCO
1.84
PNC
--
Quick Ratio
MCO
1.64
PNC
--

Dividends

Dividend Yield
MCO
0.78%
PNC
3.27%
Payout Ratio
MCO
29.53%
PNC
39.78%

AI Verdict

MCO BULLISH

Moody's Corporation (MCO) exhibits exceptional profitability and consistent earnings execution, underpinned by best-in-class margins and ROE of 54.91%, significantly outperforming financial services peers. Despite a premium valuation (P/E 38.6x vs sector 20.6x), the stock is supported by robust 22.9% YoY earnings growth, strong cash flow generation, and a favorable analyst target of $543.75 implying 13.4% upside. Price momentum has lagged recently (1Y: +0.2%, 6M: -1.8%), but long-term performance remains strong (5Y: +81.5%), reflecting durable franchise value in credit ratings and analytics. Insider selling introduces caution, though it appears routine rather than distress-driven, while the analyst community maintains a unified 'buy' recommendation.

Strengths
ROE of 54.91% — more than double the sector average of 25.17% — reflecting capital efficiency and pricing power
Operating margin of 46.89% and gross margin of 73.75% demonstrate industry-leading cost structure and pricing control
22.9% YoY earnings growth and 10.7% revenue growth outpace most peers, including MMC and USB, in a high-margin business model
Risks
Premium valuation: P/E of 38.6x and Price/Book of 21.6x are substantially above sector averages (P/E 20.6x, P/B ~6x), increasing sensitivity to growth deceleration
Debt/Equity of 1.81 is elevated vs sector average of 0.72, raising refinancing and interest rate risk in a higher-for-longer rate environment
Insider activity shows net selling over the past 6 months ($1.66M in sales, 0 buys), potentially signaling lack of confidence at current levels
PNC NEUTRAL

PNC shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Attractive valuation with P/E of 12.7
Strong profitability (31.1% margin)
Risks
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

MCO vs PNC: Head-to-Head Comparison

This page compares Moody's Corporation (MCO) and The PNC Financial Services Group, Inc. (PNC) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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