Morningstar vs Yahoo Finance

One of the best things you can do to ensure that you remain financially secure is to invest. Nevertheless, that is easier said than done with many investors often regretting some of the investment decisions they made. 

If you are tired of making wrong investment decisions, you could certainly use some professional help and if you have been searching for the same, you have probably heard of Yahoo Finance or Morningstar. Well, that is because they are some of the best stock picking services in the market.

Of course, you probably want to pick one and run with it. In this review, we are going to compare the two services so that you are in a better position to make an informed choice. Read on for more.

morningstar dashboard


Overall Rating: 4.6/5

yahoo finance dashboard e1591976090722

Yahoo Finance

Overall Rating: 4.3/5

About Yahoo Finance

yahoo finance premium

It would be best if we defined what you are looking at, right? Yahoo Finance is essentially a site that contains news and data regarding different stock markets and investments. It is therefore a great tool for keeping you updated about matters investment.

Aside from that, it also features finance reports to show you the fluctuations in the stock market. Moreover, you get information about how the stock market is likely to change. All this is supposed to make running your finances easier.

About MorningStar

morningstar dashboard

As for Morningstar, it is a preferable service if you appreciate value investing. The platform will not suit you if you are a chartist. That is because it does not assess technical charts that tell you when to sell or buy stocks.

Instead, the platform focuses more on low fee investment assets, proper asset allocation, and general investments that have a greater chance of generating reliable returns.

How they Work

As far as Yahoo Finance, you get to do things like conduct basic assessment and research on stocks, access investment ideas, and monitor your investment portfolio. The platform has analytical tools that can help you analyze your portfolio risk profile, value your stocks, and check your portfolio's performance against other benchmarks.

On the other hand, Morningstar provides ratings and analysis of individual securities like ETFs, bonds, and stocks. However, it mainly focuses on mutual funds. By subscribing to the service, you get access to comprehensive information on different investment types.

Furthermore, it rates mutual funds to help you pick the ones that will best suit your investment portfolio. Essentially, the service features screening tools that will help you choose which ventures you may want to invest in.

Key Differences

Let us now look at the main differences between Yahoo Finance and Morningstar. That should make it easier for you to pick.

First, Yahoo Finance allows you to link your brokerage accounts directly. This makes it possible to analyze and track your investment portfolio in real-time. Unfortunately, Morningstar doesn't allow for the same so you would have to update your portfolio manually if you opt to use the platform.

Another major difference is that Yahoo Finance focuses only on stock analysis and research while Morningstar researches on mutual funds, bonds, and stocks.

Besides, Morningstar employs a stock-picking approach as far as stock investment ideas and research by focusing on intrinsic value and long-term advantages. Yahoo Finance on the other hand widely covers both stock investment and stock trading which can also be referred to as fundamental analysis and technical analysis respectively.

Therefore, if you prefer to invest for the long-term, Morningstar will be a better option compared to Yahoo Finance.

Who are they For?

You are probably wondering which one of the two platforms will be best for you so here is what you need to know.

Yahoo Finance is best suited for investors who are tech-savvy and want to have an easy time as far as investing. The site is easy to navigate and use hence ideal for beginners. That said; you may have to use it for a while to get the hang of it.

Morningstar is ideal for fundamental investors who appreciate understanding the value behind each investment. Initially, the platform only analyzed mutual funds but it started analyzing stocks a while back. Presently, Morningstar's rating system is recognized and trusted by investors.

Simply put, Morningstar is a service that can help accelerate your research and is better for conducting fundamental analysis.

The Pricing

So, what will it cost you to access the services?

With Yahoo Finance, you get a free version but it only contains basic tools. We will tell you though that even though they are basic, the free tools are quite helpful and will suffice if you are on a tight budget. If you want the premium version, you will be required to part with $39 monthly or $349 annually. Of course, you get extra features with a premium membership.

Morningstar also comes with a free version and just like Yahoo Finance, it also has some useful information. That said; the free version doesn't offer all the tools you might need to make sound investment decisions.

You can therefore opt to pay for the premium version that goes for $29.95 monthly and $199 yearly. With this membership, you get access to tools that will aid in improving investment ideas, assess current investments, and screen your portfolio.

We also have a tip for you as far as paying for premium membership. It is better to pay the annual subscription because then you get to save a whopping $160! How cool is that?

Final Verdict

As an investor, you do not want to gamble with your finances and that is why you need financial advice and tools to help you put your money where it is likely to bring returns. With the Yahoo Finance platform, you get to make use of your technical skills because it is designed to suit tech-savvy people.

Morningstar, on the other hand, is primarily designed for self-directed individuals. Although it will not invest for you, it will give you access to the analysis, research, and tools you need to make the best investments.

As far as which one to pick, we feel that you first need to determine what kind of investor you are. Once that is figured out, you will automatically know which between the two is best for you.