Head to Head Contrast: Japan Exchange Group (OTCMKTS:JPXGY) and Morningstar (NASDAQ:MORN)

Japan Exchange Group (OTCMKTS:JPXGY) and Morningstar (NASDAQ:MORN) are both financial services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Valuation & Earnings

This table compares Japan Exchange Group and Morningstar”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Japan Exchange Group	N/A	N/A	N/A	$49.88	0.25
Morningstar	$2.17 billion	6.75	$141.10 million	$4.95	69.17

Morningstar has higher revenue and earnings than Japan Exchange Group. Japan Exchange Group is trading at a lower price-to-earnings ratio than Morningstar, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Japan Exchange Group and Morningstar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Japan Exchange Group	N/A	N/A	N/A
Morningstar	11.34%	22.34%	8.89%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Japan Exchange Group and Morningstar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Exchange Group	0	0	0	0	N/A
Morningstar	0	1	2	0	2.67

Morningstar has a consensus target price of $360.67, indicating a potential upside of 5.33%. Given Morningstar’s higher possible upside, analysts clearly believe Morningstar is more favorable than Japan Exchange Group.

Institutional & Insider Ownership

57.0% of Morningstar shares are owned by institutional investors. 39.9% of Morningstar shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Morningstar beats Japan Exchange Group on 9 of the 10 factors compared between the two stocks.

About Japan Exchange Group

Japan Exchange Group, Inc. operates as a financial instruments exchange holding company in Japan. The company engages in the operation of financial instruments exchange markets for trading listed securities and derivatives instruments to market users; publication of stock prices and quotations; provision of market facilities for trading of commodity derivatives, physical commodities, and commodity index futures; self-regulatory operations, such as listing examination, listed company compliance, market surveillance, and inspections and examinations of trading participants. It also provides clearing and settlement, and market-related services. The company was incorporated in 1949 and is headquartered in Tokyo, Japan.

About Morningstar

Morningstar, Inc. provides independent investment insights in the United States, Asia. Australia, Continental Europe, the United Kingdom, and internationally. The company operates in five segments: Morningstar Data and Analytics; PitchBook; Morningstar Wealth; Morningstar Credit; and Morningstar Retirement. The company offers managing investments, including mutual funds, ETFs, separate accounts, collective investment trusts, model portfolios, equities, and fixed income securities; Morningstar Direct is an investment-analysis and reporting platform; Morningstar Advisor Workstation, a suite of tool to provide help and advice. The PitchBook segment provides data and research covering the private capital markets comprising venture capital, private equity, private credit and bank loans, and merger and acquisition activities; and pitchbook platform. It provides model portfolios and wealth platforms; Morningstar Managed Portfolios, an advisor service with model portfolios designed for fee-based independent financial advisors; and Morningstar.com that discovers, evaluates, and monitors stocks, ETFs, and mutual funds; build and monitor portfolios and markets. In addition, the company provides credit ratings, research, data, and credit analytics solutions; Morningstar DBRS which offers securitizations and other structured finance instruments, such as asset-backed securities, residential mortgage-backed securities, commercial mortgage-backed securities, and collateralized loan obligations. Further, it offers managed retirement accounts, fiduciary services, Morningstar Lifetime Allocation funds, and custom models; Morningstar Indexes offers market indexes used for performance benchmarks and as the basis for investment products and other portfolio strategies; and Morningstar Sustainalytics provides environmental, social and governance data, research, analysis, and insights. Morningstar, Inc. was incorporated in 1984 and is headquartered in Chicago, Illinois.