Zacks v/s Morningstar: What is the difference?

Zacks v/s Morningstar: What is the difference?

The founder of Zacks Investment Research is Len Zacks, which he created in the year 1978. The main aim of Zacks Investment Research is to provide investors with independent research that will give them a trading advantage. A team of experts runs the company through quantitative analysis.

Zacks v/s Morningstar: What is the difference?
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Morningstar tops the chart when it comes to the financial industry’s independent research company. It was created in the year 1984 by Joe Mansueto and was based in Chicago.  The company now has over five-thousand employees working all around the globe.

About Zacks

Zacks is the research company that helps investors to figure out which of the many mutual funds have the potential to do well in the current market scenario. This company has covered close to 19000 mutual funds in February 2019. On a scale of one to five, rating one denotes a strong recommendation to buy the common stock. Zacks follow two ranking systems. The first one is for the U.S stock-based funds, and the other is applicable for all the additional funds.

About Morningstar

Morningstar follows the star rating method on one to five stars. The first ten per cent of the funds from this category are rated five, whereas the last ten per cent of funds from this category are rated one.  The three types based on which the rating is done every three years, five years, and ten years. Analyst rating is also available here, which include gold, silver, bronze, neutral, and contrary to which the gold rating signifies that it is an excellent option for the investors.

What is the stark difference between Zacks and Morningstar?

Two distinct membership packages are offered by Morningstar of which one requires registration on its website, and the other is free of cost. The free membership can be used to view the rating of the mutual funds. For in-depth information, one has to go premium. On the other hand, Zacks offers multiple options for its investors, of which the most common one is the Zacks Premium.  

Morningstar and Zacks both give out the report of investment is a similar style. The only difference lies in their contrast of ways. When it comes to financial data, Morningstar has more to offer.

Both Morning Star and Zacks show stock Sector Breakdown. The only difference here is that Morningstar opts an S&P sector weighting percentage and A vibrant pie-chart is used by Zacks to denote the same.

There is a short description of the mutual funds, provided by Zacks while includes the history and objectives of the funds. The Morningstar offers no such explanation.

Thus, we can conclude from the above discussion that both Zacks and Morningstar should be considered as both offer different insights about mutual funds. While Zacks focuses more on the quantitative aspect, fundamental analysis plays a huge role when it comes to Morningstar. Using unbiased ratings, one can finally decide the potential of the mutual funds they are considering to invest.

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