The Carlyle Group (NASDAQ:CG) vs. Morningstar (NASDAQ:MORN) Head-To-Head Comparison


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Morningstar (NASDAQ:MORN) and The Carlyle Group (NASDAQ:CG) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Dividends

Morningstar pays an annual dividend of $1.26 per share and has a dividend yield of 0.6%. The Carlyle Group pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. The Carlyle Group pays out 58.8% of its earnings in the form of a dividend. Morningstar has raised its dividend for 1 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Morningstar and The Carlyle Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Morningstar 0 0 0 0 N/A
The Carlyle Group 0 7 4 0 2.36

The Carlyle Group has a consensus target price of $29.25, indicating a potential downside of 11.79%. Given The Carlyle Group’s higher probable upside, analysts plainly believe The Carlyle Group is more favorable than Morningstar.

Risk & Volatility

Morningstar has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, The Carlyle Group has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Insider & Institutional Ownership

43.9% of Morningstar shares are owned by institutional investors. Comparatively, 33.1% of The Carlyle Group shares are owned by institutional investors. 49.7% of Morningstar shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Morningstar 13.11% 18.79% 8.59%
The Carlyle Group -5.38% 25.90% 4.75%

Valuation and Earnings

This table compares Morningstar and The Carlyle Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Morningstar $1.18 billion 7.88 $152.00 million N/A N/A
The Carlyle Group $2.11 billion 5.55 $380.90 million $1.70 19.51

The Carlyle Group has higher revenue and earnings than Morningstar.

Summary

Morningstar beats The Carlyle Group on 8 of the 15 factors compared between the two stocks.

About Morningstar

Morningstar, Inc. provides independent investment research services in North America, Europe, Australia, Canada, Asia, the United Kingdom, and internationally. It offers web-based tools; investment data, fundamental equity research, manager research, credit ratings, and private capital markets research services; and 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 independent financial advisors, as well as offers asset allocation services for asset managers, broker-dealers, and insurance providers; Morningstar Advisor Workstation, a web-based research and proposal generation platform; and Morningstar.com, a Website for individual investors. It also provides Morningstar Enterprise Components; Morningstar Credit Ratings that provides new issue and surveillance ratings for structured finance securities; operational risk assessment services, deal monitoring, and corporate credit estimation; Morningstar Indexes for creating investment products; Morningstar workplace solutions, such as retirement accounts, fiduciary services, allocation funds, and custom models; and PitchBook Platform, research and analysis workstation for investment and research professionals. 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 The Carlyle Group

The Carlyle Group Inc. is an investment firm specializing in direct and fund of fund investments. Within direct investments, it specializes in management-led/ Leveraged buyouts, privatizations, divestitures, strategic minority equity investments, structured credit, global distressed and corporate opportunities, small and middle market, equity private placements, consolidations and buildups, senior debt, mezzanine and leveraged finance, and venture and growth capital financings, seed/startup, early venture, emerging growth, turnaround, mid venture, late venture, PIPES. The firm invests across four segments which include Corporate Private Equity, Real Assets, Global Market Strategies, and Solutions. The firm typically invests in industrial, agribusiness, ecological sector, fintech, airports, parking, Plastics, Rubber, diversified natural resources, minerals, farming, aerospace, defense, automotive, consumer, retail, industrial, infrastructure, energy, power, healthcare, software, software enabled services, semiconductors, communications infrastructure, financial technology, utilities, gaming, systems and related supply chain, electronic systems, systems, oil and gas, processing facilities, power generation assets, technology, systems, real estate, financial services, transportation, business services, telecommunications, media, and logistics sectors. Within the industrial sector, the firm invests in manufacturing, building products, packaging, chemicals, metals and mining, forestry and paper products, and industrial consumables and services. In consumer and retail sectors, it invests in food and beverage, retail, restaurants, consumer products, domestic consumption, consumer services, personal care products, direct marketing, and education. Within aerospace, defense, business services, and government services sectors, it seeks to invest in defense electronics, manufacturing and services, government contracting and services, information technology, distribution companies. In telecommunication and media sectors, it invests in cable TV, directories, publishing, entertainment and content delivery services, wireless infrastructure/services, fixed line networks, satellite services, broadband and Internet, and infrastructure. Within real estate, the firm invests in office, hotel, industrial, retail, for sale residential, student housing, hospitality, multifamily residential, homebuilding and building products, and senior living sectors. The firm seeks to make investments in growing business including those with overleveraged balance sheets. The firm seeks to hold its investments for four to six years. In the healthcare sector, it invests in healthcare services, outsourcing services, companies running clinical trials for pharmaceutical companies, managed care, pharmaceuticals, pharmaceutical related services, healthcare IT, medical, products, and devices. It seeks to invest in companies based in Sub-Saharan focusing on Ghana, Kenya, Mozambique, Botswana, Nigeria, Uganda, West Africa, North Africa and South Africa focusing on Tanzania and Zambia; Asia focusing on Pakistan, India, South East Asia, Indonesia, Philippines, Vietnam, Korea, and Japan; Australia; New Zealand; Europe focusing on France, Italy, Denmark, United Kingdom, Germany, Austria, Belgium, Finland, Iceland, Ireland, Netherlands, Norway, Portugal, Spain, Benelux , Sweden, Switzerland, Hungary, Poland, and Russia; Middle East focusing on Bahrain, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Turkey, and UAE; North America focusing on United States which further invest in Southeastern United States, Texas, Boston, San Francisco Bay Area and Pacific Northwest; Asia Pacific; Soviet Union, Central-Eastern Europe, and Israel; Nordic region; and South America focusing on Mexico, Argentina, Brazil, Chile, and Peru. The firm seeks to invest in food, financial, and healthcare industries in Western China. In the real estate sector, the firm seeks to invest in various locations across Europe focusing on France and Central Europe, United States, Asia focusing on China, and Latin America. It typically invests between $1 million and $50 million for venture investments and between $20 million and $1 billion for buyouts in companies with enterprise value of between $31.57 million and $1000 million and sales value of $10 million and $500 million. It seeks to invest in companies with market capitalization greater than $50 million and EBITDA between $5 million to $25 million. It prefers to take a majority stake. It typically holds its investments for three to five years. Within automotive and transportation sectors, the firm seeks to hold its investments in for four to six years. While investing in Japan, it does not invest in companies with more than 1,000 employees and prefers companies' worth between $100 million and $150 million. The firm originates, structures, and acts as lead equity investor in the transactions. The Carlyle Group Inc. was founded in 1987 and is based in Washington, District of Columbia with additional offices in 21 countries across six continents (North America, South America, Asia, Australia and Europe).

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