S&P Global Inc. (SPGI) Stock Analysis

S&P Global’s primary competitive advantages are rooted in its market position, data assets, and brand reputation. The company operates in highly concentrated markets—most notably credit ratings and financial indices—where it is one of only three major global players, alongside Moody’s and Fitch. In credit ratings, S&P Global is the largest by profitability, with operating margins in Ratings consistently above 60% and a 2024 segment revenue of $4.4 billion, outpacing Moody’s ($3.6 billion).

Its indices business, S&P Dow Jones Indices, is a global leader, with asset-linked fees accounting for 64% of segment revenue and average ETF assets under management tied to its indices rising 8% in 2024. The company’s proprietary data sets, accumulated over decades, create high switching costs for customers and underpin recurring subscription revenue—over 50% of total sales.

S&P Global’s brand is widely trusted for independence and accuracy, a critical factor in financial services. Its scale enables ongoing investment in technology, including AI-driven analytics, which smaller rivals struggle to match. Customer retention is high, and the company’s global reach allows it to serve diverse client segments and capture growth in emerging markets.

Risks include regulatory scrutiny, potential disruption from new data providers, and the need to continually innovate. However, the company’s entrenched position, network effects, and reputation provide a durable moat relative to both traditional and technology-led competitors.