WallStSmart

Canadian Natural Resources Ltd (CNQ)vsMorgan Stanley (MS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Morgan Stanley generates 81% more annual revenue ($70.30B vs $38.76B). CNQ leads profitability with a 27.9% profit margin vs 24.0%. MS appears more attractively valued with a PEG of 1.83. MS earns a higher WallStSmart Score of 76/100 (B+).

CNQ

Strong Buy

67

out of 100

Grade: B-

Growth: 3.3Profit: 8.5Value: 7.3Quality: 5.0

MS

Strong Buy

76

out of 100

Grade: B+

Growth: 8.0Profit: 7.5Value: 10.0Quality: 4.8
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNQUndervalued (+76.9%)

Margin of Safety

+76.9%

Fair Value

$175.97

Current Price

$49.02

$126.95 discount

UndervaluedFair: $175.97Overvalued
MSUndervalued (+59.3%)

Margin of Safety

+59.3%

Fair Value

$407.18

Current Price

$165.65

$241.53 discount

UndervaluedFair: $407.18Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNQ5 strengths · Avg: 8.6/10
Market CapQuality
$102.25B9/10

Large-cap with strong market position

Return on EquityProfitability
25.8%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
27.9%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
13.0x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.31B8/10

Generating 2.3B in free cash flow

MS6 strengths · Avg: 8.8/10
Market CapQuality
$263.03B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Profit MarginProfitability
24.0%9/10

Keeps 24 of every $100 in revenue as profit

P/E RatioValuation
16.2x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.7%8/10

Earnings expanding 20.7% YoY

Areas to Watch

CNQ3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

EPS GrowthGrowth
3.7%4/10

3.7% earnings growth

PEG RatioValuation
3.422/10

Expensive relative to growth rate

MS3 concerns · Avg: 3.0/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-4.60B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CNQ

The strongest argument for CNQ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 27.9% and operating margin at 19.6%.

Bull Case : MS

The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 24.0% and operating margin at 38.6%. Revenue growth of 11.0% demonstrates continued momentum.

Bear Case : CNQ

The primary concerns for CNQ are Revenue Growth, EPS Growth, PEG Ratio.

Bear Case : MS

The primary concerns for MS are PEG Ratio, Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

CNQ profiles as a value stock while MS is a mature play — different risk/reward profiles.

MS carries more volatility with a beta of 1.21 — expect wider price swings.

MS is growing revenue faster at 11.0% — sustainability is the question.

CNQ generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

MS scores higher overall (76/100 vs 67/100), backed by strong 24.0% margins and 11.0% revenue growth. CNQ offers better value entry with a 76.9% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Canadian Natural Resources Ltd

ENERGY · OIL & GAS E&P · USA

Canadian Natural Resources Limited acquires, explores, develops, produces, markets and sells crude oil, natural gas and natural gas liquids (NGL). The company is headquartered in Calgary, Canada.

Morgan Stanley

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City.

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