uCloudlink Group (NASDAQ:UCL) & Morningstar (NASDAQ:MORN) Head to Head Survey

uCloudlink Group (NASDAQ:UCL) and Morningstar (NASDAQ:MORN) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

85.5% of uCloudlink Group shares are owned by institutional investors. Comparatively, 57.0% of Morningstar shares are owned by institutional investors. 54.6% of uCloudlink Group shares are owned by company insiders. Comparatively, 36.2% of Morningstar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for uCloudlink Group and Morningstar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
uCloudlink Group	0	0	0	0	0.00
Morningstar	0	1	2	0	2.67

Morningstar has a consensus price target of $361.6667, suggesting a potential upside of 37.09%. Given Morningstar’s stronger consensus rating and higher possible upside, analysts plainly believe Morningstar is more favorable than uCloudlink Group.

Risk and Volatility

uCloudlink Group has a beta of 4.26, meaning that its stock price is 326% more volatile than the S&P 500. Comparatively, Morningstar has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Profitability

This table compares uCloudlink Group and Morningstar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
uCloudlink Group	2.19%	8.89%	3.10%
Morningstar	17.22%	23.54%	10.52%

Valuation and Earnings

This table compares uCloudlink Group and Morningstar”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
uCloudlink Group	$91.64 million	1.50	$4.56 million	$0.05	72.80
Morningstar	$2.28 billion	4.89	$369.90 million	$9.39	28.10

Morningstar has higher revenue and earnings than uCloudlink Group. Morningstar is trading at a lower price-to-earnings ratio than uCloudlink Group, indicating that it is currently the more affordable of the two stocks.

Summary

Morningstar beats uCloudlink Group on 10 of the 14 factors compared between the two stocks.

About uCloudlink Group

uCloudlink Group Inc. operates as a mobile data traffic sharing marketplace in the telecommunications industry. The company provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators, mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. It also offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solution for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, the company provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value-added services, such as advertisement. Further, it's platform-as-a-service/software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. uCloudlink Group Inc. was incorporated in 2014 and is headquartered in Tsim Sha Tsui, Hong Kong.

About Morningstar

Morningstar, Inc. provides independent investment insights in the United States, Asia. Australia, Continental Europe, the United Kingdom, and internationally. The company operates in five segments: Morningstar Data and Analytics; PitchBook; Morningstar Wealth; Morningstar Credit; and Morningstar Retirement. The company offers managing investments, including mutual funds, ETFs, separate accounts, collective investment trusts, model portfolios, equities, and fixed income securities; Morningstar Direct is an investment-analysis and reporting platform; Morningstar Advisor Workstation, a suite of tool to provide help and advice. The PitchBook segment provides data and research covering the private capital markets comprising venture capital, private equity, private credit and bank loans, and merger and acquisition activities; and pitchbook platform. It provides model portfolios and wealth platforms; Morningstar Managed Portfolios, an advisor service with model portfolios designed for fee-based independent financial advisors; and Morningstar.com that discovers, evaluates, and monitors stocks, ETFs, and mutual funds; build and monitor portfolios and markets. In addition, the company provides credit ratings, research, data, and credit analytics solutions; Morningstar DBRS which offers securitizations and other structured finance instruments, such as asset-backed securities, residential mortgage-backed securities, commercial mortgage-backed securities, and collateralized loan obligations. Further, it offers managed retirement accounts, fiduciary services, Morningstar Lifetime Allocation funds, and custom models; Morningstar Indexes offers market indexes used for performance benchmarks and as the basis for investment products and other portfolio strategies; and Morningstar Sustainalytics provides environmental, social and governance data, research, analysis, and insights. Morningstar, Inc. was incorporated in 1984 and is headquartered in Chicago, Illinois.