How Many Stars for Morningstar?
By Amy Feldman

(MONEY Magazine) – Morningstar is a well-known name among individual investors. The company provides some of the best independent fund analysis around, and managing director Don Phillips has been an outspoken advocate for fund shareholders. But is Morningstar itself a good investment? In May the firm filed documents for an initial public offering. What investors will get is a small company (just $140 million in revenue) that's been losing money after accounting for the cost of employee stock options. While its revenue nearly doubled in the past three years, its core mutual fund analysis business seems mature. To keep growing, Morningstar is looking to newer businesses, including opportunities abroad, consulting and hedge fund analysis. After the IPO, founder Joe Mansueto will still hold a controlling stake. We can't really analyze the stock until we see a price. But chances are, most investors would get more out of a $115-a-year subscription to --AMY FELDMAN