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Financial Engines (FNGN) IPO could be good, competes with Morningstar (MORN)

|Includes: FDS, Morningstar, Inc. (MORN)

FNGN BUSINESS:  Independent investment advice

  • Showed very good momentum over the past four quarters, especially the last two
  • Focused on an underserved financial advisory niche
  • Gross margins comparable to Morningstar (NASDAQ:MORN), a direct competitor and Factset Research (NYSE:FDS), which provides analytics to financials professionals and is in same sector broadly defined. Recent revenue and profit growth for FNGN are higher than for MORN and FDS.
  • Relatively high P/E multiple based on profitable, recurring subscription revenue
  • FNGN could be a good way for investors to participate in the expected (hoped for) economic growth cycle
  • Has a marketing relationship with Fidelity
  • more in FNGN IPOreport