FactSet vs Morningstar
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KIRA’s take AI analyst
I put FactSet and Morningstar side by side, using each one’s latest annual report. Here is what stands out:
- FactSet is the larger business, with $2.5B of revenue in fiscal 2026 against $2.4B for Morningstar.
- Morningstar grew revenue faster (7.5%, against 6.7%).
- FactSet kept more of each dollar of sales as operating profit (28.3% operating margin, against 21.5%).
- FactSet turned more of its sales into free cash flow (28.6% FCF margin, against 18.1%).
- Morningstar earned a higher return on the capital invested in it (22.5%, against 18.2%).
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
FactSet
FDS
4/11
Operating marginNet marginFCF marginShare count change
Morningstar
MORN
6/11
Revenue growth5-year growthGross marginReturn on capitalReturn on equityNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | FDS FY26 | MORN FY25 |
|---|---|---|
| Size | ||
| Market cap | $11.8B | $8.6B |
| Revenue | $2.5B | $2.4B |
| Free cash flow | $707M | $443M |
| Net income | $534M | $374M |
| Growth | ||
| Revenue growth | 6.7% | 7.5% |
| 5-year growth | 9.3% | 12.0% |
| Share count change | −4.6% | −2.1% |
| Profitability | ||
| Gross margin | 50.6% | 61.0% |
| Operating margin | 28.3% | 21.5% |
| Net margin | 21.5% | 15.3% |
| FCF margin | 28.6% | 18.1% |
| Return on capital | 18.2% | 22.5% |
| Return on equity | 25.5% | 26.4% |
| Balance sheet | ||
| Net debt | $1.1B | $544M |
| Net debt / EBITDA | 1.3x | 0.8x |
| Dividends and buybacks | $808M | $864M |
| Valuation & quality | ||
| P/E | — | 21.4x |
| Piotroski F-score | 6 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.