Comparing The Motley Fool vs Zacks Investment is looking at two different things. They both provide quality investment advice at reasonable prices but are starkly different in the types of services they offer and the target investors they target. 

The Motley Fool is a stock-picking service focusing on growth stocks from companies that will be the next best thing, while Zacks covers a wider base, including stocks from the entire economy and ranking them based on certain factors. With our Zacks vs Motley Fool comparison, you can learn more about these investment research tools and pick the ideal one.

Quick Glance At Motley Fool vs Zacks 

What is The Motley Fool? 

The Motley Fool was founded in 1993 by brothers Dave and Tom Gardner. It is a stock-picking company that provides stock recommendations by sending online newsletters. The flagship product is Stock Advisor, which is focused on DIY investors who need fundamental analysis of stocks.

The stocks Motley Fool recommends are individual stocks but also based on themes, and they expect investors to hold them for three to five years. Most of the companies are next-generation and are based in the US. 

The Motley Fool investing philosophy is based on buying and holding investing for long-term investments. They provide quality stocks for long-term outperformance. It has gained a strong reputation for providing profitable stock picks through its subscription services. 

The Motley Fool is suitable for qualitative, growth-oriented stock analysis. It’s also ideal for moderate-risk, long-term investments and provides straightforward monthly stock picks. It specializes in individual stocks and is ideal for most investors. 

What is Zacks Investment Research?

On the other hand is Zacks Investment Research Inc. It is a Chicago-based firm providing analytical tools and financial information to investors. It’s a major investment research firm specializing in stock research, recommendations and analysis. 

One of the highlights of Zacks is its quantitative approach, as it provides revised earnings estimates on different kinds of stocks. This way, they can rank the stocks and identify strong performers. The Zacks ranking system uses earnings estimate revisions because it impacts stock prices. 

It’s suitable for investors who don’t require complexity in their recommendations. This is because all stock picks are based on a one-to-five ranking. Zacks stock ratings are focused on timing and fundamentals and suitable for short-term trading and long-term investment advice. All of their recommendations are based on research covering 1,050 stocks. 

Zacks newsletter provides independent research and will equip investors with a trading advantage. Aside from stocks, Zacks also analyzes ETFs, mutual funds and equities. Looking at Zacks vs Motley Fool, it’s important to know that Zacks does not pick out stocks for you. It only ranks the stocks to help with your decision-making. 

Zacks vs Motley Fool: Features Compared 

When comparing The Motley Fool vs Zacks Investment Research, it’s important to look at the features offered by both before choosing the best stock recommendation service. The Motley Fool is a stock picking service with different subscription options based on the stocks, while Zacks offers different features depending on the pricing plan. 

Zacks Features 

Zacks has many features to guide investors into making the right decisions. Most investors use the Zacks Premium plan, which provides recommendations, rankings and reports for stocks and other securities. It also provides ranking systems, lists, and trading tools that benefit investors.

Zacks Premium Newsletter

The highlight of this research platform is the Premium plan, which is a service providing professional tools to users. The newsletter has daily updates on the Zack Rank, complete access to equity research, the focus list, premium screening tools, and other ranks. It also offers exclusive commentary features for investors, like tools and recommendation portfolios. The Zacks subscription cost is $249 annually and is the recommended plan for most investors.

Earnings ESP Filter

This tool provided by Zacks allows them to find stocks with a surprising probability of profiting soon. It can also be used to find stocks with negative surprise earnings, so if it’s about to crash, you can sell it in time. And if the stock will have a better value soon, you can buy it in advance. 

Premium Screens

When using Zacks, you can scan stocks with the screening tool. It allows you to screen stocks based on their value, growth, or momentum. 

Portfolio Tracker

Another feature is the Zacks portfolio tracker, which makes it easy for investors to take care of their stocks. It provides information on stocks so you can decide whether to buy or sell and will send you alerts when there’s a movement in your stocks. The tracker also provides Zacks Rank and Style Scores in real-time. 

Custom Stock Screener

Rather than using the Zacks premium screener given to you, it allows you to create a customized stock screener. The screener allows you to search for stocks based on particular factors. There are different criteria you can use to filter your options.  

Focus List

This list provides the top 50 stocks investors should consider trading. They are all chosen based on earnings momentum with their Zacks stock rating.

Zacks #1 Rank List

All the stocks on this list are the ones that are within the top 5% of stocks that are predicted to perform well. Also, the Zacks ratings change daily, giving you the top stocks you should consider investing in. You can always check it in the morning before making any investment decisions.  

Zacks Industry Rank

With the stock research platform, you can filter and sort stock industries based on their ranking. There are over 250 industry groups provided by Zacks newsletter. 

Weekly Market Analysis

Every week, Zacks Investing provides a stock strategy. It provides market insights, sector allocation, and the reasons it chose the specific stocks based on its ranking. All subscribers get the weekly analysis in their mail every Monday. 

Motley Fool Features 

On the other hand is The Motley Fool, one of the leading stock-picking services online. It is known for having different subscription options based on the theme of stocks that you want to invest in. Aside from the stock picks and lists, different helpful tools like the Motley Fool portfolio tracker can enhance your trading experience. 

Stock Advisor

The flagship feature of The Motley Fool is Stock Advisor. This stock picking service is available at $199 per month, providing subscribers with two new stock picks every week. If you’re wondering, does Motley Fool beat the market, the answer is yes. The Stock Advisor picks have outperformed the S&P 500 list by over four times. Aside from the two stocks, it offers starter stocks, best buy now stocks and tools.

Rule Breakers

Another popular offering is Motley Fool’s Rule Breakers, which is based on disruptive companies, mostly in technology. It provides two growth stocks per month from future industry-leading companies. Many Motley Fool recommendations in this plan have outperformed the market, but it’s not as good as Stock Advisor.

Rule Your Retirement

Motley Fool Investing has a plan for anyone planning their retirement. It provides subscribers with exclusive retirement, estate planning, personal finance and insurance topics. There is also a discussion board that you can use to communicate with other investors.

Motley Fool Options

If options are your thing and not stocks, then you can consider the Motley Fool Options. It provides the Motley Fool latest recommendations for options and resources on different related topics. With this plan, investors can gain profit in the options market.

Active Stock Monitoring

Investors can make better decisions when they know what is happening with their stocks. This feature offers detailed monitoring for different securities, and you can set it to alert you for stocks of your choice. This feature also provides buy or sell notifications, which inform you of when a stock is about to go up or down.

Strategic Stock Reports

The Motley Fool does not skimp on its stock reports, offering various assets, including stocks. They are usually provided in the form of articles and lists. Examples are Top 5 Starter Stocks or Top 10 Best Stocks to Buy Right Now. 

Simulator and Allocation Tools

It provides different tools like the simulator tools that help investors model the approach they will use to invest. One of these tools is the Possibility of Positive Returns, which simulates the likelihood of a positive return on stocks. Another option is the allocation tools, which is part of the Motley Fool portfolio tracker. This allows you to set your risk tolerance; then, the tool offers a sample of how they recommend you should allocate your stocks, ETFs, bonds, and more. 

Resources and Support Compared 

As an investment research service, Motley Fool vs Zacks provides robust resources and reliable customer service for all users. But it’s important to note that Zacks has a more limited scope of resources, which investors might not appreciate. 

Motley Fool Resources and Customer Service 

Motley Fool Investing offers different resources that its users can benefit from. For one, it has a wide range of free content on its website, podcast and YouTube channel. You also don’t need to sign up to get any of the free content. 

There is a library of investment articles and stock reports on Motley Fool. The platform offers dozens of reports written by experts, which can enhance your portfolio. The Motley Fool recommendations are also sent with a detailed report on why they picked those two in a month. There is a large investing community that you can participate in to learn more.

As for customer service, the Motley Fool comes with a robust FAQ help center. The help center includes information on investing topics, stocks, and other securities. It’s very useful for beginners who don’t understand all the terminologies. As for how to use their services, you can access the tutorials in their help center.

Zacks Resources and Customer Service 

On the other hand, Zacks subscription has a limited resource center as it focuses more on ranking and rating stocks than educating customers. But, it comes with very detailed research reports that can benefit investors. It covers over 1,000 popular stocks in its research, all independently analyzed by Zacks. 

All the reports and articles provide detailed information on the basics and growth potential of the company’s stocks. Zacks stock picker also provides a lot of free content and tutorials that give a step-by-step guide on how to use their products and take advantage of their tools.

Zacks newsletter also provides reliable customer service. All subscribers can call their number from 9 am to 6 pm EST, from Monday to Friday. Also, all the department heads of Zacks have their phone numbers and email addresses on their profile. There is also an FAQ section and forum for subscribers to discuss and share ideas.

Another feature is the portfolio management tools that come with tutorials for novice and experienced investors. Sign up for the Zacks Method for Trading, a home study course, for beginner-friendly tips. 

Motley Fool vs Zacks: Which Investor Is It Right For? 

Now that you’ve made the Motley Fool vs Zacks comparison, you might wonder whether it will meet your needs.

On one hand, the Motley Fool is suitable for beginners who want to focus their portfolios on growth companies. It has a strategy of providing long-term stocks with a recommended three to five years holding period. Also, beginners can easily understand the simple language used to explain ideas and reports.

All subscribers benefit from a hands-off approach; all you have to do is read the analysis and buy the recommended stocks.

On the other hand, Zacks Premium is the best choice for shorter-term, advanced investors. It focuses on stocks with a raised or lowered earnings estimate. The company does not exactly hold your hand, so investors must assemble their portfolios based on the tens of stocks listed on the ratings and rankings. Despite this, Zacks beat the market with high ranking stocks.

Also, Zacks offers strong buy and short sell recommendations, so it’s ideal for investors interested in long-term and short-term investments. If you’re not limiting your portfolio to stock, it covers ETFs, mutual funds and options. All subscribers get a daily update through stock newsletter rankings without delay.

Online User Reviews on Motley Fool and Zacks

When making a Motley Fool vs. Zacks comparison, you can consider seeing what real online users have to say about these investment research platforms. Checking what your fellow investors have to say can make it easier to decide.

On Trustpilot, the Motley Fool rating is 3.6 from 8,387 reviews, while it received 328 reviews from Sitejabber, adding up to a 3-star rating. Other reputable platforms have reviewed Motley Fool, like Moneywise, which rates it at 4 stars.

There are fewer Zacks Investment Research reviews online, which might put it at a disadvantage. It received 89 reviews on Trustpilot with a 2.5 rating; on Sitejabber, it has a 4.4 rating from 136 reviews.