No connection

Search Results

MORN vs PB

MORN
Morningstar, Inc.
BEARISH
Price
$183.73
Market Cap
$7.08B
Sector
Financial Services
AI Confidence
85%
PB
Prosperity Bancshares, Inc.
NEUTRAL
Price
$69.33
Market Cap
$7.04B
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
MORN
20.04
PB
12.58
Forward P/E
MORN
14.17
PB
9.61
P/B Ratio
MORN
5.98
PB
0.85
P/S Ratio
MORN
2.89
PB
5.37
EV/EBITDA
MORN
13.49
PB
--

Profitability

Gross Margin
MORN
61.03%
PB
0.0%
Operating Margin
MORN
21.71%
PB
55.62%
Profit Margin
MORN
15.3%
PB
40.35%
ROE
MORN
26.35%
PB
6.73%
ROA
MORN
8.86%
PB
1.28%

Growth

Revenue Growth
MORN
8.5%
PB
19.9%
Earnings Growth
MORN
4.5%
PB
-15.1%

Financial Health

Debt/Equity
MORN
1.03
PB
--
Current Ratio
MORN
0.98
PB
--
Quick Ratio
MORN
0.89
PB
--

Dividends

Dividend Yield
MORN
1.09%
PB
3.43%
Payout Ratio
MORN
21.03%
PB
42.83%

AI Verdict

MORN BEARISH

MORN exhibits a mediocre Piotroski F-Score of 4/9, indicating stable but non-improving financial health. The stock is trading at a significant premium to both its Graham Number ($79.65) and its growth-based Intrinsic Value ($126.09), suggesting severe overvaluation. This fundamental weakness is compounded by a 0/100 technical trend and aggressive insider selling totaling over $25M. While profitability remains strong with a 26.35% ROE, the lack of price momentum and valuation gap outweigh the operational strengths.

Strengths
Strong profitability with ROE at 26.35% and Gross Margins at 61.03%
Consistent earnings track record with 3 of the last 4 quarters beating estimates
Very sustainable dividend payout ratio of 21.03%
Risks
Significant overvaluation relative to Graham Number ($79.65) and Intrinsic Value ($126.09)
Bearish insider sentiment with 14 sell transactions and zero buys in 6 months
Liquidity risk indicated by a Current Ratio of 0.98 and Quick Ratio of 0.89
PB NEUTRAL

Prosperity Bancshares presents a conflicting profile: it is fundamentally undervalued on an asset basis (P/B 0.85) and below its Graham Number ($100.73), yet it exhibits severe financial health deterioration with a Piotroski F-Score of 2/9. While revenue growth is strong at 19.9%, earnings are contracting (-15.1% YoY), likely reflecting the costs and integration of a recent acquisition. The significant gap between the Graham Number and the growth-based Intrinsic Value ($38.57) suggests the stock is a value trap if earnings do not recover. Bearish insider activity and a 0/100 technical trend further dampen the outlook despite bullish analyst targets.

Strengths
Trading at a discount to book value (P/B 0.85)
Strong revenue growth of 19.9% YoY
Low Forward P/E of 9.61 relative to sector averages
Risks
Critical financial health weakness (Piotroski F-Score 2/9)
Negative earnings growth (-15.1% YoY) despite revenue gains
Bearish insider sentiment with consistent director selling

Compare Another Pair

MORN vs PB: Head-to-Head Comparison

This page compares Morningstar, Inc. (MORN) and Prosperity Bancshares, Inc. (PB) 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.

Home
Terminal
AI Chat
Markets
Profile