Morningstar (NASDAQ:MORN) and AssetMark Financial (NYSE:AMK) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Analyst Recommendations

This is a summary of current ratings for Morningstar and AssetMark Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Morningstar 0 0 0 0 N/A
AssetMark Financial 0 2 4 0 2.67

AssetMark Financial has a consensus target price of $28.20, indicating a potential upside of 13.16%. Given AssetMark Financial’s higher possible upside, analysts plainly believe AssetMark Financial is more favorable than Morningstar.

Earnings & Valuation

This table compares Morningstar and AssetMark Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Morningstar $1.18 billion 5.27 $152.00 million N/A N/A
AssetMark Financial $417.94 million 4.32 -$420,000.00 $0.54 46.15

Morningstar has higher revenue and earnings than AssetMark Financial.

Insider & Institutional Ownership

46.8% of Morningstar shares are owned by institutional investors. Comparatively, 21.8% of AssetMark Financial shares are owned by institutional investors. 49.7% of Morningstar shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Morningstar and AssetMark Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Morningstar 11.47% 17.21% 8.41%
AssetMark Financial -0.11% 4.24% 2.93%

Summary

Morningstar beats AssetMark Financial on 9 of the 11 factors compared between the two stocks.

About Morningstar

Morningstar, Inc. provides independent investment research services in North America, Europe, Australia, Canada, Asia, and internationally. It offers a line of data, research, and software tools on a range of investment offerings, including managed investment products, publicly listed companies, fixed income securities, private capital markets, and real-time global market data for financial advisors, asset managers, retirement plan providers and sponsors, and individual and institutional investors. The company offers Morningstar Data, an investment data spanning various investment databases, including equity fundamentals, managed investments, and real-time pricing and market data; Morningstar Direct, an investment-analysis platform; Morningstar Managed Portfolios, an advisor service consisting of model portfolio that offers services for institutional asset management, as well as offers asset allocation services for asset management firms, broker-dealers, and insurance providers; Morningstar Advisor Workstation, a Web-based investment planning system; and Morningstar.com, a Website for individual investors. It also provides Morningstar Enterprise Components; Morningstar Research, which includes equity research and manager research; Morningstar Credit Ratings that provides new issue and surveillance ratings for structured finance securities, as well as corporate issuers and financial institutions, individual debt issuances, and operational risk assessment services; Morningstar Indexes for creating investment products; and Morningstar workplace solutions, such as retirement accounts, fiduciary services, and custom models. In addition, the company's PitchBook offers a mobile application, excel plug-in, data feeds, and data solutions. Morningstar, Inc. was founded in 1984 and is headquartered in Chicago, Illinois.

About AssetMark Financial

AssetMark Financial Holdings, Inc. provides wealth management and technology solutions in the United States. The company offers an open-architecture product platform, as well as client advice, asset allocation options, practice management, support services, and technology to the financial adviser channel. It offers an integrated technology platform that allows advisers to do research and portfolio analysis, create proposals, open and maintain accounts, implement investments, and meet reporting obligations; delivers its platform and solutions through people who get to know the company's clients; and provides curated platform of investment options. The company also offers mutual funds to clients of financial advisers; custodial recordkeeping services primarily to investor clients of registered investment advisers; and record-keeper and third-party administrator services for retirement products. It serves independent advisers who provide wealth management advice to the U.S. investors. The company was founded in 1996 and is headquartered in Concord, California. AssetMark Financial Holdings, Inc. is a subsidiary of AssetMark Holdings LLC.

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