At the end of the day today, Portfolio123 and StockScreen123 will be switching data providers. The company is making the bold move of switch from Thomson Reuters to Compustat for its fundamental data. This will change the underlying data used to power these stock screening and backtesting tools.
Compustat is the data of choice among finance academics. I also believe many fund managers also rely on this data source. For many reasons, I think you’ll find that this switch to Compustat is a major upgrade for Portfolio123. This might be the perfect time to try a 45-day free trial to Portfolio123.
Below you’ll find an interesting white paper by Marc Gerstein detailing the benefits of using stock fundamental data from Compustat versus Thomson Reuters:
Portfolio123 Switching From Thomson Reuters Fundamental Data to Compustat
I recommend everyone who uses fundamental data from either Compustat or Thomson Reuters read through this entire document. I found the section on Differences in Standardization to be especially enlightening. I didn’t realize how much of an art fundamental data standardization is.
Disclosure: I get a small commission on subscriptions to Portfolio123/StockScreener123 from the affiliate links included in this article.