VOL. XCIV, NO. 247
BEST INVESTING TOOLS COMPARISON
Tool details checked August 23, 2026
Tool Comparison
Magic Formula Investing vs Validea
Pick Magic Formula Investing instead if
Magic Formula Investing
Free · Web
- You're newer to investing and want something approachable
Start here
Validea
Free • From $269.95/yr · Web
- You want ETF screeners, quant, and backtesting.
- You're a long-term investor who cares more about fundamentals than headlines
Skip both if: Neither one clicks with how you research; there are strong third options.
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Our take
The bottom line
Magic Formula Investing and Validea cover a lot of the same ground (2 shared categories, screeners and stock ideas), so for the basics you won't go far wrong with either. Validea simply does more: 15 categories to Magic Formula Investing's 2, including ETF screeners, quant, and backtesting. Magic Formula Investing counters by being completely free.
What readers say
Magic Formula Investing
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Validea
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Key differences at a glance
- Asset coverage
- ValideaAdds ETFs
- Broader coverage
- Validea15 vs 2 categories
- Beginner friendly
- Magic Formula Investing
- Free plan
- Both
See for yourself
How they stack up
The side-by-side table: pricing, platforms, data, and coverage at a glance.ShowHide
How they stack up
The side-by-side table: pricing, platforms, data, and coverage at a glance.| Attribute | ||
|---|---|---|
| Pricing & plans | ||
Starting price | Free | Free • From $269.95/yr |
Free tier | Yes | Yes |
Free trial | — | — |
| Platforms & access | ||
Web app | Yes | Yes |
Mobile app | No | No |
API access | No | No |
Broker sync | — | No |
| Audience & fit | ||
Experience level | Beginner, Intermediate, Advanced | Intermediate, Advanced |
Best for | — | Retail Traders, Pro Retail +5 more |
Categories covered | 2 | 15 |
Regions | North America | North America |
| Data & capabilities | ||
Data quality | 3 signals: Latency: End of Day, Granularity: EOD +1 more | Latency: End of Day and Granularity: EOD |
Data partners | — | LSEG |
Capabilities | — | 6 signals: Ranking backtests, Universe builder +4 more |
| Try it | Visit Magic Formula Investing | Visit Validea |
Where each one shines
What Magic Formula Investing and Validea each do best.ShowHide
Where each one shines
What Magic Formula Investing and Validea each do best.What Magic Formula Investing does best
- The official Magic Formula screener with two inputs, minimum market cap and either 30 or 50 results.
- Screening for companies ranked on high earnings yield and high return on capital, with the accounting adjustments described by the official methodology.
- A narrow value and quality idea list for further research.
- Focus on U.S.-listed equities because the official universe excludes foreign companies and ADRs.
- Financial and utility companies are excluded from the official screen.
What Validea does best
- Review stock portfolios based on Buffett, Graham, Lynch, Piotroski, Greenblatt, O'Shaughnessy, momentum, quality, value, and other strategies.
- ETF model portfolios, risk-managed ETF portfolios, sector rotation, factor rotation, and macro/factor approaches.
- Direct access to factor reports, guru analysis, guru stock screeners, ETF factor reports, and ETF factor screeners.
- Trend following, market valuation, rating changes, strategy/ETF matching, and portfolio correlation tools.
- Limited public results for stock and ETF screens based on Piotroski F-score, quality, value, momentum, and multiple factors.
Every detail we compared
Every tracked attribute for Magic Formula Investing and Validea, side by side.ShowHide
Every detail we compared
Every tracked attribute for Magic Formula Investing and Validea, side by side.| Attribute | ||
|---|---|---|
| Coverage & fit | ||
Asset types | Stocks | StocksETFs |
Experience | BeginnerIntermediateAdvanced | IntermediateAdvanced |
Target audience | Not specified | Retail TradersPro RetailLong-term InvestorsValue InvestorsQuality InvestorsQuants/DevelopersStudents/Researchers |
Regions | North America | North America |
Coverage details | Countries: USIdentifiers: Ticker | Countries: US and CAIdentifiers: Ticker |
| Data | ||
Data freshness | End of Day | End of Day |
Data granularity | EOD | EOD |
Data partners | Not specified | LSEG |
| Plans & trust | ||
Capability signals | Not specified | Ranking backtestsUniverse builderFactors: Value, Quality, Momentum, Growth, and LowVolFactor exposurePortfolio factor exposureCorrelation |
Vendor & support | Not specified | The Reese Group, LLCCountry: United StatesSupport: Email |
Curation ratings | Methodology 4/5Reliability 4/5UX 3/5 | Not specified |
Green tags are exclusive to that tool in this comparison.
What you'll actually pay
Plans, billing, trials, and per-month pricing for both tools.ShowHide
What you'll actually pay
Plans, billing, trials, and per-month pricing for both tools.| Tier | ||
|---|---|---|
| Free plan | Free | Free“Free public research and newsletter” |
| Entry paid plan | — | $269.95/yr≈ $22.50/mo“Validea Standard” |
| Top plan | — | $899.95/yr≈ $75/mo“Validea Pro” |
Questions we keep getting
What's the difference between Magic Formula Investing and Validea?
Magic Formula Investing leans toward screeners and stock ideas, while Validea puts more weight on stock ideas, screeners, and ETF screeners. They overlap in 2 categories, so for most people it comes down to workflow preference and price.
How much do Magic Formula Investing and Validea cost?
Good news: both Magic Formula Investing and Validea have free plans, so you can run them side by side and only pay if you hit a wall.
Which is better for beginners: Magic Formula Investing or Validea?
Magic Formula Investing is the friendlier place to start; its interface takes less getting used to. Both work fine once you're past the basics.
Should I choose Magic Formula Investing or Validea?
It depends on what you're after. Pick Magic Formula Investing if you prefer its overall approach; go with Validea if you'd rather have ETF screeners and quant. And if you only need the basics both share, let price decide.
What asset classes do Magic Formula Investing and Validea cover?
Both cover stocks. Validea adds ETFs on top.
Which has a better stock screener: Magic Formula Investing or Validea?
Both Magic Formula Investing and Validea include stock screeners, and they differ more in interface than raw power; try both and see which one clicks for you.
Can I track my portfolio with Magic Formula Investing or Validea?
Validea handles portfolio tracking. Magic Formula Investing is really a research tool; you'd track your portfolio elsewhere.
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Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.