WallStSmart

Futu Holdings Ltd (FUTU)vsMorgan Stanley (MS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Morgan Stanley generates 233% more annual revenue ($70.30B vs $21.09B). FUTU leads profitability with a 53.8% profit margin vs 24.0%. FUTU trades at a lower P/E of 13.7x. FUTU earns a higher WallStSmart Score of 79/100 (B+).

FUTU

Strong Buy

79

out of 100

Grade: B+

Growth: 10.0Profit: 9.0Value: 8.3Quality: 6.3
Piotroski: 4/9

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

FUTUUndervalued (+67.7%)

Margin of Safety

+67.7%

Fair Value

$479.23

Current Price

$140.60

$338.63 discount

UndervaluedFair: $479.23Overvalued
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

FUTU6 strengths · Avg: 9.7/10
Return on EquityProfitability
33.1%10/10

Every $100 of equity generates 33 in profit

Profit MarginProfitability
53.8%10/10

Keeps 54 of every $100 in revenue as profit

Operating MarginProfitability
69.1%10/10

Strong operational efficiency at 69.1%

Revenue GrowthGrowth
53.1%10/10

Revenue surging 53.1% year-over-year

EPS GrowthGrowth
78.8%10/10

Earnings expanding 78.8% YoY

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

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

FUTU0 concerns · Avg: 0/10

No major concerns identified

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 : FUTU

The strongest argument for FUTU centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 53.8% and operating margin at 69.1%. Revenue growth of 53.1% demonstrates continued momentum.

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 : FUTU

No major red flags identified for FUTU, but monitor valuation.

Bear Case : MS

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

Key Dynamics to Monitor

FUTU profiles as a growth 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.

FUTU is growing revenue faster at 53.1% — sustainability is the question.

Monitor CAPITAL MARKETS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FUTU scores higher overall (79/100 vs 76/100), backed by strong 53.8% margins and 53.1% revenue growth. MS offers better value entry with a 59.3% 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.

Futu Holdings Ltd

FINANCIAL SERVICES · CAPITAL MARKETS · China

Futu Holdings Limited operates an online brokerage and wealth management platform in Hong Kong and internationally. The company is headquartered in Hong Kong, Hong Kong.

Visit Website →

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.

Want to dig deeper into these stocks?