Is MSCI a Buy?
MSCI (NYSE: MSCI) provides investment products and financial data to some of the largest asset managers in the world. You might be more familiar with it for its exchange-traded funds (ETFs) than for its own business. But its business is a strong one, and it's been a big winner for investors, up almost 500% over the past five years.
The company has built up years of experience in the industry and an extensive collection of historical data, proprietary equity index data, risk algorithms, and environmental, social, and governance (ESG) data, along with strong intellectual property protection on its indexes. As a result, it has been able to effectively leverage this data and expertise to continually improve the index and ETF products it provides for its clients.
MSCI capitalizes on this domain knowledge through a subscription-based revenue model. In fact, subscription-based revenues make up 74% of its $1.6 billion in total revenue since June 30, 2019. Not only that, but the company is able to keep clients satisfied, as seen by its 90%-plus retention rate over the past five years. All of these factors make MSCI a great company to consider adding to your portfolio.
Source Fool.com
