Moody’s or S&P Global: Which compounder deserves a spot in your portfolio?

A head-to-head between two of the world’s most profitable businesses.

Over the past twenty years, few companies have rewarded long-term investors as consistently as S&P Global and Moody’s. Both stocks have turned into 20-baggers since the early 2000s, compounding at an average annual rate of around thirteen percent. That kind of performance speaks for itself.

At first glance, the two seem remarkably similar. Both have built strong moats, enjoy exceptional profitability, and continue to grow steadily across their core markets.

But beneath the surface, important differences emerge. In this article, we will break down what sets these two high-quality businesses apart. We will examine their business models, growth strategies, profitability, balance sheets and valuation to answer two key questions: Which of the two is the better investment for long-term oriented investors, and at what price might it be worth buying? And more importantly, can they continue the compounding success of the past?

Let’s dive in!