Motley Fool vs. Morningstar – Which Investing Service is Better?
Stuck between choosing either Motley Fool or Morningstar? Read this article to get a clearer understanding of which investing service is better and worth pursuing.
If you are looking to generate more wealth, invest in the stock market. Stock trading is ranked among the best ways to make more money, both short-term and long-term. However, since the stock market is associated with several risks, you need to do thorough research first and understand your investments. This is where the Motley Fool and Morningstar come in.
Both the Motley Fool and Morningstar services provide quality investment research to investors. However, they focus on different goals and investment types. How so?
Here is a detailed comparison of Motley Fool vs. Morningstar:
The Motley Fool is a stock picking service. It allows users to register for one or more newsletters that discuss how particular stocks are expected to grow within the next few years. And as its name suggests, Motley Fool demonstrates a relatively light attitude towards investments and management of finances.
The stock picking service offers a long list of subscriptions, with the Flagship Stock Advisor being the most popular newsletter. This newsletter recommends the best stock picks every Thursday and provides several lists of the “best buys now.” David and Tom usually give the stock picks, the two founders of the Motley Fool service.
In addition, Motley Fool has a website where users can access plenty of free content, explaining what you can expect to get when you subscribe to the paid offerings.
Morningstar is ranked among the top investment research organisations, registering over 500,000 investments and 5,000 employees. Joe Mansueto established it in 1984. The investment service is popular for exchange-traded and mutual fund research. In addition, a larger percentage of brokerages rate it high, proof of its quality service and reliability.
The Morningstar service includes credit ratings, ETFs, and essential data for investors and stocks. However, when you register for the premium flagship service, you get access to a wide range of investment tools, reports of investment stocks for regular investors, and essential ratings. Also, Morningstar’s ratings feature a section on “best investments” which covers all the information you need to know on bonds, funds, and stocks.
In addition to the paid subscription service, Morningstar also offers free educational resources to investors. And unlike the Motley Fool, it takes a more formal and severe approach when managing investments. However, the service has a wider focus, making it quite challenging to track and compare its performance with the overall market.
Similarities between the Motley Fool and Morningstar:
- Both the Motley Fool and Morningstar are premium investment services.
- Both offer paid regular data and additional bonuses, educational content, investment tools, reports, and portfolio trackers.
- Both services have similar price points (each offers a premium subscription package of $199 per year).
- Both have a website where users can find the latest investment recommendations and updated research.
- Motley Fool and Morningstar regularly send out investment newsletters to their subscribed users.
- They offer customer service through phone, email, and a help centre.
Differences Between the Motley Fool and Morningstar
These two investment services feature several differences. It is these differences that determine the best investors for each service.
- Takes a less serious and fun approach to the stock market.
- Takes a more serious and formal approach to the stock market.
- It has limited coverage, focusing on approximately 10-15 stocks.
- It has a wider coverage, making it an ideal resource for those looking to make an investment decision.
- Provides more specific information on the particular stocks worth investing in.
- It provides more general information on which stocks to buy; it does not mention any specific stocks.
Which Investing Service is Better?
So now that we have compared the Motley Fool vs. Morningstar, which service should you invest in? Well, each of these services is ideal for a specific case. For example, the Motley Fool service is perfect for those investors who have an active portfolio and would like to try stock picking. Also, if you are looking to invest in single stocks using a hands-on approach, the Motley Fool service would be the best investment choice for you.
On the other hand, Morningstar is ideal for investors seeking to acquire detailed information about the general market. The service offers huge sets of data on ETFs and mutual funds and different find ratings and stocks. However, Morningstar makes you knowledgeable on what top picks you should go for. It does not mention specific stocks, as does Motley Fool.
To choose which investment service you should use, you need first to outline your goals. For example, if you would like a service that helps you pick specific stocks and build a good portfolio, the Motley Fool service would be your best choice.
On the other hand, if you would like a broader and more general approach to picking your stock investments, go for the Morningstar service. Better yet, invest in both of these investment services and improve your chances of choosing the best stocks to invest in!