WallStSmart

Jefferies Financial Group Inc (JEF)vsMorgan Stanley (MS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Morgan Stanley generates 1341% more annual revenue ($77.83B vs $5.40B). MS leads profitability with a 25.9% profit margin vs 23.0%. JEF appears more attractively valued with a PEG of 1.53. JEF earns a higher WallStSmart Score of 77/100 (B+).

JEF

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 6.0Value: 5.7Quality: 2.5
Piotroski: 3/9Altman Z: 0.84

MS

Strong Buy

73

out of 100

Grade: B

Growth: 9.3Profit: 8.0Value: 5.7Quality: 4.5
Piotroski: 5/9Altman Z: 0.38

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JEF6 strengths · Avg: 9.2/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
35.0%10/10

Revenue surging 35.0% year-over-year

EPS GrowthGrowth
159.8%10/10

Earnings expanding 159.8% YoY

Profit MarginProfitability
23.0%9/10

Keeps 23 of every $100 in revenue as profit

P/E RatioValuation
15.4x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.55B8/10

Generating 1.6B in free cash flow

MS6 strengths · Avg: 9.2/10
Market CapQuality
$343.48B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
41.6%10/10

Strong operational efficiency at 41.6%

EPS GrowthGrowth
62.4%10/10

Earnings expanding 62.4% YoY

Profit MarginProfitability
25.9%9/10

Keeps 26 of every $100 in revenue as profit

P/E RatioValuation
17.5x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
28.0%8/10

Revenue surging 28.0% year-over-year

Areas to Watch

JEF4 concerns · Avg: 3.0/10
PEG RatioValuation
1.534/10

Expensive relative to growth rate

Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.842/10

Distress zone — elevated risk

MS3 concerns · Avg: 2.7/10
PEG RatioValuation
2.104/10

Expensive relative to growth rate

Free Cash FlowQuality
$-7.85B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.382/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : JEF

The strongest argument for JEF centers on Price/Book, Revenue Growth, EPS Growth. Profitability is solid with margins at 23.0% and operating margin at 16.9%. Revenue growth of 35.0% demonstrates continued momentum.

Bull Case : MS

The strongest argument for MS centers on Market Cap, Operating Margin, EPS Growth. Profitability is solid with margins at 25.9% and operating margin at 41.6%. Revenue growth of 28.0% demonstrates continued momentum.

Bear Case : JEF

The primary concerns for JEF are PEG Ratio, Return on Equity, Piotroski F-Score. Debt-to-equity of 3.48 is elevated, increasing financial risk.

Bear Case : MS

The primary concerns for MS are PEG Ratio, Free Cash Flow, Altman Z-Score.

Key Dynamics to Monitor

JEF carries more volatility with a beta of 1.50 — expect wider price swings.

JEF is growing revenue faster at 35.0% — sustainability is the question.

JEF generates stronger free cash flow (1.6B), providing more financial flexibility.

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

Bottom Line

JEF scores higher overall (77/100 vs 73/100), backed by strong 23.0% margins and 35.0% revenue growth. 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.

Jefferies Financial Group Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Jefferies Financial Group Inc. is engaged in investment banking and capital markets, asset management, and direct investment businesses in the Americas, Europe, the Middle East, Africa, and Asia. The company is headquartered in New York, New York.

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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