Seeking Alpha vs Morningstar 2024

Jeremy Biberdorf
By: Jeremy Biberdorf
 
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When it comes to investing, the more you know the more likely you are to succeed. Companies Seeking Alpha and Morningstar are designed to help investors gather information allowing them to analytically invest their money.

So, when comparing Seeking Alpha vs Morningstar, which one is best?

I will break down some of the similarities and differences between the two stock research platforms.

What is Seeking Alpha?

Seeking Alpha is an investment research platform that provides financial and business news, stock analysis, and Wall Street ratings. Catering primarily to intermediate to advanced investors, it offers insights through Quant ratings, Author ratings, and alerts via email.

With a blend of contributor articles and in-depth tools, Seeking Alpha aims to inform and educate investors for better investment decisions.

What is Morningstar?

Morningstar is an investment research company that specializes in evaluating stocks, ETFs, and mutual funds. Targeted at beginner to intermediate investors, it provides exclusive stock evaluations, ratings, and research reports, helping investors gauge the worth of potential investments.

Morningstar’s platform allows for quick assessments of stocks’ fair value, aiding in determining if they are overvalued or undervalued.

 

Seeking Alpha is Better for:Morningstar Investor is Better for:
Intermediate to AdvancedBeginner to Intermediate Investors
Financial and business newsStocks, ETFs, Mutual Funds
Stock analysis on email alertsNot receiving spammy emails
Wall Street ratings for every stockLower Risk Portfolio Building
Comparing stocks side-by-side with peersReducing risk
Investing on the go or carrying out in-depth research and analysisGathering Information

Morningstar allows investors to gather information on individual companies and determine if they are worth investing in. It does this by offering exclusive stock evaluations, ratings, research reports and investment ideas.

You can read a full review on Morningstar here.

Seeking Alpha Premium uses a combination of in-depth tools and analyses that help you make informed investment decisions. They do this by educating investors via their Quant ratings, Author ratings, and Wall Street ratings.

For each stock, Morningstar also provides a fair value assessment, allowing you to determine if it is overvalued or undervalued in a matter of seconds.

Read a full review on Seeking Alpha here.

Seeking Alpha Morningstar
Annual Subscription Fees Basic Service The basic edition is available for free and gives users access to valuable information about stock research, such as Wall Street Ratings, news updates, and more. $249 for Morningstar Investor ($199 first year price with Modest Money plus 7 days free)
Securities Analyzed Stocks, ETFs or REITs Stocks, Mutual Funds, ETFs
Investing Approach Advanced charting, data visualizations, technical and fundamental analysis Quantitative (starred) and qualitative (gold, etc.) approaches distinctly separated by different ranking systems
Best Use Better investment decisions Low Risk Investing
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Modest Money Overall Rating
4.5 rating based on 5 ratings
4.0 rating based on 5 ratings

Seeking Alpha VS Morningstar: Determining Factors?

The three determining factors I will cover when comparing Seeking Alpha vs Morningstar are

  • Cost
  • Performance & track Record
  • Organization of Information

Let’s take a closer look below.

Factor 1: Better Organization

For each stock or fund, Morningstar provides a researched financial analyst report produced by one of the company’s in-house analysts.

Compared to contributor articles on Seeking Alpha, these reports are easier for beginners to understand.

Seeking Alpha goes one step further by providing A-F ratings for certain valuation indicators like price-to-earnings ratio and price-to-cash flow.

Seeking Alpha Is Preferable to Morningstar for Organizing Information

  • A-F rating for valuation indicators
  • Articles are written by contributors
  • Multiple perspectives available

Morningstar: Organizing Information

Neither Morningstar’s tools nor its stock recommendations are intended for day trading or swing trading. Instead, it is intended for the investing style of long-term investors, particularly those interested in basic analysis.

Morningstar concentrates on stocks, ETFs, and funds rather than FX, futures, or options.

Taking advantage of the free 7-day trial for the Investor service is recommended to decide if Morningstar premium service is right for you.

Factor 2: Cost

If you are like me, the cost is a serious consideration when choosing my investment products. It’s important to weigh up the cost of each service to determine which is right for you. Both have their advantages but Morningstar offers the best free option.

Yes, it’s limited but hey, it’s better than nothing.

When you move into the paid subscriptions and access to premium content, consider what type of investor you are and which service will suit your trading style.

If used correctly, I believe both will pay for themselves in the long run.

Seeking Alpha’s Basic Subscription Costs Less Than Morningstar

  • Limited access to both Seeking Alpha and Morningstar’s websites is available for free, but for unlimited access to most of the data and features, you’ll need to purchase a premium membership.
  • Cost for Seeking Alpha Premium is $239 annually or the Pro subscription can be availed for $2400 annually. Morningstar Premium is $249 annually or $34.95 each month.

You can save money on a Seeking Alpha subscription by using my coupon here!

Seeking Alpha Costs

Seeking Alpha Premium is $239 annually and the Pro subscription will cost $2400 annually.

Seeking Alpha Pro contains all of the features and advantages of Premium, in addition to the following:

  • Top Ideas
  • PRO content and newsletters
  • Short ideas portal
  • Idea screener/filter
  • VIP Service
  • Ad-free experience

I wrote an entire article on why we think Seeking Alpha is worth the price here!

Morningstar Costs

Morningstar offers a free 7-day trial while Morningstar Premium is going to cost you $249 annually or $34.95 a month.

It’s worth paying for Morningstar Premium if you buy individual stocks, mutual funds, or exchange-traded funds and need objective, data-driven analysis.

Morningstar’s subscription includes the following:

  • Instant X-Ray is a great tool providing analysis of the diversification of your portfolio, including recommendations on how you can further diversify your risk. It also ranks your investment portfolio by risk level and shows your expenses for your assets and other vital data.
  • Stock, ETF, and mutual fund quote pages offer extensive information about a stock, ETF, or mutual fund.

You can read more about Morningstar Investor services here.

Factor 3: Performance

I’ll now take a look at how the two stack up when comparing recent performance.

Seeking Alpha Performance

More than 20 million people visit Seeking Alpha’s website each month. This makes it one of the most popular websites for conducting stock research anywhere in the world.

These users are only interested in one thing: obtaining access to high-quality investment research.

The service provided by Seeking Alpha is made possible by more than 7,000 contributors who together produce over 10,000 articles every single month.

Over the years, Seeking Alpha’s backtested strategy has delivered very impressive returns, with the historical performance of their top-rated stocks beating the S&P 500 year on year.

Check out my review of Seeking Alpha’s impressive app here.

Save $50 on Seeking Alpha Today

Morningstar Performance

Morningstar as a company has seen exceptional growth. Here’s my quick look into how well the company has been doing over the past few years.

Morningstar’s revenue for the quarter ending September 30 saw a 9.16% increase year-over-year with over $1.8 Billion in revenue.

  • Morningstar’s annual revenue for 2021 was $1.699B, a 22.3% increase from 2020.
  • Morningstar’s annual revenue for 2020 was $1.39B, a 17.85% increase from 2019.
  • Morningstar’s annual revenue for 2019 was $1.179B, a 15.6% increase from 2018.

Learn More About Morningstar

Who is Seeking Alpha Best For?

Seeking Alpha is ideally suited for investors who need a robust charting and financial research platform to enhance their decision-making process. It’s particularly valuable for those dedicated to carrying out thorough research and analysis, whether they’re on the move or prefer a more detailed, sit-down approach to studying market trends and company specifics.

The content primarily targets intermediate to advanced investors, offering in-depth analysis and a suite of tools for a deeper dive into individual holdings and broader market trends.

Additionally, Seeking Alpha provides a unique advantage by publishing management conference call transcripts for a wide array of companies, offering a window into the company’s performance history and future prospects as outlined by its management team.

This level of access and detailed insight makes Seeking Alpha a preferred resource for serious investors aiming to stay ahead in the dynamic and complex world of investing.

Who is Morningstar Best For?

Morningstar is most beneficial for a range of investors, from beginners to intermediates, particularly those focused on constructing lower-risk portfolios. It’s an ideal platform for both individual investors and businesses seeking insights, reliable data, research, and diverse investment opportunities. Morningstar excels in catering to value investors who prioritize a deep understanding of the fundamentals behind each investment.

The platform’s tools and analyses are designed to guide users through the process of building and managing investments with a focus on long-term value and stability. With its comprehensive resources, Morningstar supports informed decision-making and helps users understand and evaluate the potential risks and rewards associated with different investment options.

Final Verdict

Seeking Alpha offers options suitable for your needs if you want to invest on the move or set aside time for more in-depth study and analysis.

Morningstar investor is best for active traders and beginner to intermediate investors.

Seeking Alpha offers a wide range of valuable information and individual viewpoints on every stock. It does take a little more analysis effort though.

Morningstar’s website is easy to use and has great tools for creating a portfolio of stocks, ETFs, and mutual funds.

Ultimately, which stock-picking service is right for you will come down to your individual preferences and where you are at in your investment journey. That decision is yours to make.

I think whether you choose Seeking Alpha or Morningstar, you can’t go wrong!

FAQs

How are Seeking Alpha and Morningstar Similar?

Both Seeking Alpha and Morningstar provide exclusive content, tailored feeds, integrated account features, and complimentary mobile applications. The information and analysis presented are tailored to your investing style, accompanied by insights and evaluations from their respective analysts. Also, subscribers have access to their ratings, newsletters, email notifications, and customizable watchlists.

How are Seeking Alpha and Morningstar Different?

While Seeking Alpha and Morningstar both provide investment insights, they vary in the types of assets they cover, their intended user base, and the origins of their content.

Seeking Alpha focuses its analysis predominantly on stocks and ETFs, positioning itself as a platform primarily for stock investors. In contrast, Morningstar offers a broader range of analyses, including mutual funds and bonds, catering largely to fund investors.

The content on Seeking Alpha is generated by a crowd-sourced community of analysts, investors, and industry experts, contributing a diverse range of perspectives. On the other hand, Morningstar’s content is produced by a selection of in-house analysts specifically chosen for their expertise.

Who Owns Seeking Alpha?

Seeking Alpha is a private company. The founder and CEO of Seeking Alpha is David Jackson.

How many Companies Does Morningstar Cover?

Morningstar covers over 950 stocks, 1,150 mutual funds, and 300 ETFs.

Is Seeking Alpha Good for Beginners?

Seeking Alpha’s stock analysis articles are typically advanced and may be too technical for beginners. However, beginners might find value in the Premium subscription, which offers access to a curated list of top-rated stocks. This feature is beneficial for those who prefer ready-made research.

Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He’s a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.