They are two of the most popular investment services out there, but what sets Motley Fool and Morningstar apart? Today, we want to focus on the similarities and differences between these two big ones.
As you know, it is not always easy to find a good stock advisor. Most platforms are either too expensive or downright ineffective.
Therefore, before making that final decision, it is always advisable to conduct research. Here’s what you need to know before you’re satisfied with either of the two.
VariegatedFool
Overall Rating: 4.6 / 5
Morningstar
Overall Rating: 4.3 / 5
About MotleyFool
This company has been around since 1993. However, it should be noted that their popular Stock Advisor service is officially launched in 2022.
One thing you should know about this company is that once you choose their stock advisor, you usually sign up to receive monthly newsletters. This newsletter is emailed to you with two stock options along with a detailed explanation of why they are “hot choices”.
Motley Fool Stock Advisor has been quite successful (if the historical data published by the company are valid). So, if you are looking for a service that makes good calls, this will be a great platform to have.
Did you know that “El Loco” saw potential in Gilead, Amazon and Costco before anyone knew it?
About MorningStar
Morningstar was there long before the Motley Fool. He’s 9 years older to be exact. To date, the company has seen its asset management business grow to over $220 billion (under corporate management).
The Illinois-based financial services provider reportedly generated $1 billion in revenue in 2018 alone.
It should be noted that this company has made great strides in the mutual fund management sector. However, with the advent of the internet, Morningstar has metamorphosed to provide coverage in the analysis of individual stocks.
Ask anyone who used to trade in the ’90s and they’ll give you a story about how they used to travel to the library to read Morningstar’s publications.
Thanks to the fact that these companies were founded a long time ago, they are quite popular. And it shows that they are quite reliable. If they doubted, they would have already drowned.
Similarities you should know
Of course, the first obvious similarity between these two companies is that they have been around for some time. These people have survived everything from the Great Recession of 2007 to 2009 to 9/11 and the Bank of America free fall of 2011.
The next similarity is that both companies specialize in providing stock analysis. So, if you’re looking for the latest buying ideas and tips, one of these two companies is here to help you.
In addition, both companies have features that are worth paying for. Of course, because the two are not conjoined twins, they also have a fair difference.
Difference
There is no doubt that the two companies have been helping investors do research and invest for decades. But when it comes to the details, some striking differences distinguish the two.
- Investment Portfolio
First, Morningstar has a broad and dynamic investment portfolio. Their daily updates include everything from EFTs, mutual funds to individual stocks.
As such, we think it would be a good investment advisor to work with if you’re not fully interested in stocks. If you are open to trying new things in your investment journey, Morningstar should be your go-to platform.
Motley Fool Stock Advisors, on the other hand, are a stock-only platform. The good thing about having highly specialized advisors like these is that they have the ability to dig deeper and give you very subtle information.
“Stupid” is a monthly newsletter that brings you up to date with only 2 stocks that are considered to have the greatest potential at any given time. Unlike Morningstar, they do not provide information about ETFs and mutual funds.
- Frequency
If you are looking for daily information, or if you prefer to open new trades every day, Morningstar may be just what you need. The advisor provides you with daily information. A lot of them.
So, all you need to do is choose what interests you. However, the company basically lists its top picks without providing much background information.
Fortunately, they share a lot of ideas through their free articles. So, you can combine your premium suggestions with your free article ideas to make an informed decision.
Motley Fool brokers, on the other hand, are monthly publications. With only two stocks highlighted per month, this is the kind of platform you need if you only open new trades occasionally.
One thing we really like about El Loco is that the newsletter is quite deep. They not only list the actions for you, but also educate you on the reasons for choosing them.
- Additional discovery tools
As much as the choices made by Motley Fool are quite detailed, the company does not provide additional research tools. By “additional research tools” we mean news updates, daily updates, live trading, or other tools that help you discover new actions for yourself.
So, if you want to fully immerse yourself in the world of trading. Or if you just want a hands-on approach to trading, the Fool may not be enough.
We believe Morningstar provides you with many research tools. You can find detailed news and a lot of fundamental information in their list of recommendations.
Their free content is usually accompanied by analyst reports that you might find quite useful. Above all, the company provides “fair value estimates” for all its premium customers. These forecasts can be very useful when you want to get a rough idea of the potential return on a particular investment.
- Track, so far
Before deciding which platform you work with, it makes a lot of sense to want to know how they’ve performed so far. How accurately is your past data proven?
Well, the Motley Fool was quite successful. The Stock Advisor, so far, has beaten the S&P 500 without a doubt.
In fact, the company claims to have outperformed the S&P 500 and Dow Jones indices by a factor of 4. And that’s based on data from the last 17 years.
Morningstar, on the other hand, has no countable historical return. Why? Because the data they share is intended solely to help investors build their own investment portfolios. Therefore, it is unrealistic to try to calculate the return, since the choice is made by investors building their own portfolios that can be very successful or downright sad.
- Price
The Fool.com Stock Advisor costs $199 per year. Excellent services are ideal for anyone who wants to take advantage of opportunities in the world of stocks.
But if you’re looking for more than that, you may need to invest in the Rule-Breaker tier, which costs $299 per year. This level allows you to get access to the carefully selected actions of David Gardner.
Your Retirement Plan, Market Pass, and Option Rules are also in place for an additional fee.
Its archives, on the other hand, are available on a free trial basis. After that, all you need to do is pay $24 per month or $199 per year for a premium subscription.
In our opinion, there are no very expensive companies, except for the fact that Motley Fool offers more variety of prices to choose from.
Is Motley Fool for me?
Experts generally recommend Fool for anyone interested in a semi-active trading style. In particular, this type of service works best when a person is interested in highly specialized stock selection services.
We thought Fool.com would be a great place to start if you’re a complete beginner. But if you already have stock experience and are willing to experiment with new things, stock advisors can be quite limiting.
You may need to consider doing so for the enterprise Option tier, which costs $999. If that sounds like a lot, then Morningstar is your knight in shiny armor. Read.
Is Morningstar for me?
Although the two are more diverse, Morningstar premium is primarily aimed at a standalone trading style. It doesn’t give you an actual choice. Just a long list of suggestions that you should dig deeper and choose for yourself.
If you’re looking for this type of roboadvisor service, Morningstar might disappoint you. That said, it gives you the research and tools you need to make some decisions on your own.
Best of all, there is a free trial available. So, if you’re on a budget and just want to try something, this might be something worth checking out.
Conclusion
To this end, we argue that both services are excellent. But if you are looking for up-to-date stock information and don’t want to experience overinformation, we highly recommend that you look for the Motley Fool Stock Advisor.
The Fool has a pretty good track record. In addition, the company’s in-house experts are actively investing in the business choices they make. And that explains why this company has historical data while Morningstar does not.
When you join the Motley Fool, you become part of a family. You enjoy success together. But when you go with Morningstar, you’re left to rush on your own, fail on your own, and most importantly, take full credit for every win you can make.
