MDB Capital (NASDAQ:MDBH) & Moody’s (NYSE:MCO) Critical Analysis

Moody’s (NYSE:MCO) and MDB Capital (NASDAQ:MDBH) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Moody’s and MDB Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Moody’s	0	5	12	1	2.78
MDB Capital	1	0	0	0	1.00

Moody’s presently has a consensus target price of $541.69, suggesting a potential upside of 18.88%. Given Moody’s’ stronger consensus rating and higher probable upside, research analysts clearly believe Moody’s is more favorable than MDB Capital.

Profitability

This table compares Moody’s and MDB Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Moody’s	31.86%	66.01%	17.38%
MDB Capital	N/A	-34.13%	-33.01%

Earnings & Valuation

This table compares Moody’s and MDB Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Moody’s	$7.72 billion	10.51	$2.46 billion	$13.68	33.31
MDB Capital	$4.91 million	8.22	-$21.25 million	($2.13)	-1.84

Moody’s has higher revenue and earnings than MDB Capital. MDB Capital is trading at a lower price-to-earnings ratio than Moody’s, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

92.1% of Moody’s shares are owned by institutional investors. Comparatively, 0.4% of MDB Capital shares are owned by institutional investors. 0.1% of Moody’s shares are owned by company insiders. Comparatively, 55.8% of MDB Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Moody’s has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, MDB Capital has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Summary

Moody’s beats MDB Capital on 14 of the 15 factors compared between the two stocks.

About Moody’s

Moody’s Corporation operates as an integrated risk assessment firm worldwide. It operates in two segments, Moody’s Analytics and Moody’s Investors Services. The Moody’s Analytics segment develops a range of products and services that support the risk management activities of institutional participants in financial markets. It also offers credit research, credit models and analytics, economics data and models, and structured finance solutions; data sets on companies and securities; and SaaS solutions supporting banking, insurance, and know your customer workflows. The Moody’s Investors Service segment publishes credit ratings and provides assessment services on various debt obligations, programs and facilities, and entities that issue such obligations, such as various corporate, financial institution, and governmental obligations, as well as structured finance securities. The company was formerly known as Dun and Bradstreet Company and changed its name to Moody’s Corporation in September 2000. Moody’s Corporation was founded in 1900 and is headquartered in New York, New York.

About MDB Capital

MDB Capital Holdings, LLC, through its subsidiaries, primarily operates as a broker-dealer. The company operates through two segments, Broker Dealer & Intellectual Property Service, and Technology Development. The Broker Dealer & Intellectual Property Service segment operates as a full-service broker dealer that focuses on conducting private and public securities offerings, as well as providing research services for investment banking due diligence. The Technology Development segment engages in the synthetic biology technology development business. The company was founded in 1997 and is based in Addison, Texas.