MCO vs. TRV: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MCO and TRV, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
MCO’s market capitalization stands at 89.15 billion USD, while TRV’s is 60.20 billion USD, indicating their market valuations are broadly comparable.
MCO’s beta of 1.38 points to significantly higher volatility compared to TRV (beta: 0.54), suggesting MCO has greater potential for both gains and losses relative to market movements.
| Symbol | MCO | TRV |
|---|---|---|
| Company Name | Moody's Corporation | The Travelers Companies, Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Data & Stock Exchanges | Insurance - Property & Casualty |
| CEO | Robert Scott Fauber | Alan David Schnitzer |
| Price | 495.56 USD | 265.72 USD |
| Market Cap | 89.15 billion USD | 60.20 billion USD |
| Beta | 1.38 | 0.54 |
| Exchange | NYSE | NYSE |
| IPO Date | October 31, 1994 | November 17, 1975 |
| ADR | No | No |
Historical Performance
This chart compares the performance of MCO and TRV by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
MCO
56.36%
Financial - Data & Stock Exchanges Industry
- Max
- 26.26%
- Q3
- 23.14%
- Median
- 14.33%
- Q1
- 11.12%
- Min
- -0.64%
MCO’s Return on Equity of 56.36% is exceptionally high, placing it well beyond the typical range for the Financial - Data & Stock Exchanges industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
TRV
15.73%
Insurance - Property & Casualty Industry
- Max
- 28.14%
- Q3
- 17.51%
- Median
- 12.75%
- Q1
- 8.26%
- Min
- 0.61%
TRV’s Return on Equity of 15.73% is on par with the norm for the Insurance - Property & Casualty industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
MCO
18.31%
Financial - Data & Stock Exchanges Industry
- Max
- 18.31%
- Q3
- 14.86%
- Median
- 11.07%
- Q1
- 6.75%
- Min
- 4.04%
In the upper quartile for the Financial - Data & Stock Exchanges industry, MCO’s Return on Invested Capital of 18.31% signifies a highly effective use of its capital to generate profits when compared to its peers.
TRV
2.35%
Insurance - Property & Casualty Industry
- Max
- 21.89%
- Q3
- 10.09%
- Median
- 3.90%
- Q1
- 0.89%
- Min
- -7.26%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Property & Casualty industry.
Net Profit Margin
MCO
29.14%
Financial - Data & Stock Exchanges Industry
- Max
- 39.08%
- Q3
- 31.63%
- Median
- 23.20%
- Q1
- 18.09%
- Min
- -0.88%
MCO’s Net Profit Margin of 29.14% is aligned with the median group of its peers in the Financial - Data & Stock Exchanges industry. This indicates its ability to convert revenue into profit is typical for the sector.
TRV
9.09%
Insurance - Property & Casualty Industry
- Max
- 21.98%
- Q3
- 13.09%
- Median
- 9.18%
- Q1
- 6.10%
- Min
- 2.13%
TRV’s Net Profit Margin of 9.09% is aligned with the median group of its peers in the Insurance - Property & Casualty industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
MCO
40.63%
Financial - Data & Stock Exchanges Industry
- Max
- 53.68%
- Q3
- 40.45%
- Median
- 31.81%
- Q1
- 24.66%
- Min
- 9.71%
An Operating Profit Margin of 40.63% places MCO in the upper quartile for the Financial - Data & Stock Exchanges industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
TRV
8.12%
Insurance - Property & Casualty Industry
- Max
- 31.70%
- Q3
- 17.32%
- Median
- 12.57%
- Q1
- 7.38%
- Min
- 4.31%
TRV’s Operating Profit Margin of 8.12% is around the midpoint for the Insurance - Property & Casualty industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | MCO | TRV |
|---|---|---|
| Return on Equity (TTM) | 56.36% | 15.73% |
| Return on Assets (TTM) | 13.95% | 3.14% |
| Return on Invested Capital (TTM) | 18.31% | 2.35% |
| Net Profit Margin (TTM) | 29.14% | 9.09% |
| Operating Profit Margin (TTM) | 40.63% | 8.12% |
| Gross Profit Margin (TTM) | 69.71% | 100.22% |
Financial Strength
Current Ratio
MCO
1.56
Financial - Data & Stock Exchanges Industry
- Max
- 1.60
- Q3
- 1.57
- Median
- 1.06
- Q1
- 0.96
- Min
- 0.62
MCO’s Current Ratio of 1.56 aligns with the median group of the Financial - Data & Stock Exchanges industry, indicating that its short-term liquidity is in line with its sector peers.
TRV
26.20
Insurance - Property & Casualty Industry
- Max
- 51.52
- Q3
- 30.84
- Median
- 20.50
- Q1
- 6.61
- Min
- 0.41
TRV’s Current Ratio of 26.20 aligns with the median group of the Insurance - Property & Casualty industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
MCO
1.93
Financial - Data & Stock Exchanges Industry
- Max
- 1.09
- Q3
- 0.80
- Median
- 0.62
- Q1
- 0.36
- Min
- 0.04
With a Debt-to-Equity Ratio of 1.93, MCO operates with exceptionally high leverage compared to the Financial - Data & Stock Exchanges industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
TRV
0.28
Insurance - Property & Casualty Industry
- Max
- 0.58
- Q3
- 0.36
- Median
- 0.27
- Q1
- 0.14
- Min
- 0.01
TRV’s Debt-to-Equity Ratio of 0.28 is typical for the Insurance - Property & Casualty industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
MCO
8.64
Financial - Data & Stock Exchanges Industry
- Max
- 27.44
- Q3
- 22.05
- Median
- 10.08
- Q1
- 6.79
- Min
- 1.01
MCO’s Interest Coverage Ratio of 8.64 is positioned comfortably within the norm for the Financial - Data & Stock Exchanges industry, indicating a standard and healthy capacity to cover its interest payments.
TRV
9.71
Insurance - Property & Casualty Industry
- Max
- 39.40
- Q3
- 22.24
- Median
- 12.38
- Q1
- 6.68
- Min
- -12.40
TRV’s Interest Coverage Ratio of 9.71 is positioned comfortably within the norm for the Insurance - Property & Casualty industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | MCO | TRV |
|---|---|---|
| Current Ratio (TTM) | 1.56 | 26.20 |
| Quick Ratio (TTM) | 1.56 | 26.20 |
| Debt-to-Equity Ratio (TTM) | 1.93 | 0.28 |
| Debt-to-Asset Ratio (TTM) | 0.47 | 0.06 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.72 | 0.50 |
| Interest Coverage Ratio (TTM) | 8.64 | 9.71 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for MCO and TRV. These metrics are based on the companies’ annual financial reports.
Revenue Growth
EPS Growth
Free Cash Flow Growth
Dividend
Dividend Yield
MCO
0.72%
Financial - Data & Stock Exchanges Industry
- Max
- 3.86%
- Q3
- 1.44%
- Median
- 1.06%
- Q1
- 0.73%
- Min
- 0.00%
MCO’s Dividend Yield of 0.72% is in the lower quartile for the Financial - Data & Stock Exchanges industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
TRV
1.60%
Insurance - Property & Casualty Industry
- Max
- 8.17%
- Q3
- 3.10%
- Median
- 1.79%
- Q1
- 0.00%
- Min
- 0.00%
TRV’s Dividend Yield of 1.60% is consistent with its peers in the Insurance - Property & Casualty industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
MCO
31.34%
Financial - Data & Stock Exchanges Industry
- Max
- 106.40%
- Q3
- 44.44%
- Median
- 31.97%
- Q1
- 29.26%
- Min
- 0.00%
MCO’s Dividend Payout Ratio of 31.34% is within the typical range for the Financial - Data & Stock Exchanges industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
TRV
22.52%
Insurance - Property & Casualty Industry
- Max
- 115.20%
- Q3
- 35.27%
- Median
- 22.19%
- Q1
- 3.16%
- Min
- 0.00%
TRV’s Dividend Payout Ratio of 22.52% is within the typical range for the Insurance - Property & Casualty industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | MCO | TRV |
|---|---|---|
| Dividend Yield (TTM) | 0.72% | 1.60% |
| Dividend Payout Ratio (TTM) | 31.34% | 22.52% |
Valuation
Price-to-Earnings Ratio
MCO
42.36
Financial - Data & Stock Exchanges Industry
- Max
- 41.71
- Q3
- 40.17
- Median
- 37.47
- Q1
- 30.61
- Min
- 16.74
At 42.36, MCO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial - Data & Stock Exchanges industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
TRV
14.12
Insurance - Property & Casualty Industry
- Max
- 35.83
- Q3
- 23.28
- Median
- 14.49
- Q1
- 11.91
- Min
- 4.47
TRV’s P/E Ratio of 14.12 is within the middle range for the Insurance - Property & Casualty industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
MCO
4.61
Financial - Data & Stock Exchanges Industry
- Max
- 4.54
- Q3
- 4.09
- Median
- 4.06
- Q1
- 3.33
- Min
- 2.36
MCO’s Forward PEG Ratio of 4.61 is exceptionally high for the Financial - Data & Stock Exchanges industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
TRV
0.71
Insurance - Property & Casualty Industry
- Max
- 2.53
- Q3
- 1.90
- Median
- 1.33
- Q1
- 0.86
- Min
- 0.01
In the lower quartile for the Insurance - Property & Casualty industry, TRV’s Forward PEG Ratio of 0.71 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
Price-to-Sales Ratio
MCO
12.34
Financial - Data & Stock Exchanges Industry
- Max
- 15.75
- Q3
- 12.42
- Median
- 9.37
- Q1
- 6.34
- Min
- 1.69
MCO’s P/S Ratio of 12.34 aligns with the market consensus for the Financial - Data & Stock Exchanges industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
TRV
1.28
Insurance - Property & Casualty Industry
- Max
- 3.76
- Q3
- 2.39
- Median
- 1.80
- Q1
- 1.01
- Min
- 0.50
The P/S Ratio is often not a primary valuation tool in the Insurance - Property & Casualty industry.
Price-to-Book Ratio
MCO
24.11
Financial - Data & Stock Exchanges Industry
- Max
- 8.57
- Q3
- 8.05
- Median
- 4.77
- Q1
- 3.69
- Min
- 1.19
At 24.11, MCO’s P/B Ratio is at an extreme premium to the Financial - Data & Stock Exchanges industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
TRV
2.14
Insurance - Property & Casualty Industry
- Max
- 5.34
- Q3
- 2.95
- Median
- 1.92
- Q1
- 1.31
- Min
- 0.52
TRV’s P/B Ratio of 2.14 is within the conventional range for the Insurance - Property & Casualty industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | MCO | TRV |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 42.36 | 14.12 |
| Forward PEG Ratio (TTM) | 4.61 | 0.71 |
| Price-to-Sales Ratio (P/S, TTM) | 12.34 | 1.28 |
| Price-to-Book Ratio (P/B, TTM) | 24.11 | 2.14 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 35.72 | 6.71 |
| EV-to-EBITDA (TTM) | 32.32 | 4.65 |
| EV-to-Sales (TTM) | 13.03 | 1.44 |