WallStSmart

Morgan Stanley (MS)vsPetroleo Brasileiro Petrobras SA ADR (PBR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 581% more annual revenue ($498.09B vs $73.17B). MS leads profitability with a 24.7% profit margin vs 21.6%. MS appears more attractively valued with a PEG of 2.54. MS earns a higher WallStSmart Score of 71/100 (B).

MS

Strong Buy

71

out of 100

Grade: B

Growth: 9.3Profit: 7.5Value: 4.3Quality: 4.0
Piotroski: 5/9Altman Z: 0.38

PBR

Strong Buy

66

out of 100

Grade: B-

Growth: 2.7Profit: 8.5Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for MS.

PBRUndervalued (+89.6%)

Margin of Safety

+89.6%

Fair Value

$176.60

Current Price

$17.75

$158.85 discount

UndervaluedFair: $176.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MS5 strengths · Avg: 9.0/10
Market CapQuality
$339.08B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
40.6%10/10

Strong operational efficiency at 40.6%

Profit MarginProfitability
24.7%9/10

Keeps 25 of every $100 in revenue as profit

Revenue GrowthGrowth
16.3%8/10

16.3% revenue growth

EPS GrowthGrowth
31.9%8/10

Earnings expanding 31.9% YoY

PBR6 strengths · Avg: 9.5/10
P/E RatioValuation
5.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.0%10/10

Strong operational efficiency at 32.0%

Market CapQuality
$117.55B9/10

Large-cap with strong market position

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

MS4 concerns · Avg: 1.8/10
PEG RatioValuation
2.542/10

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

Debt/EquityHealth
3.451/10

Elevated debt levels

PBR3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
0.4%4/10

0.4% revenue growth

PEG RatioValuation
4.572/10

Expensive relative to growth rate

EPS GrowthGrowth
-7.2%2/10

Earnings declined 7.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : MS

The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 40.6%. Revenue growth of 16.3% demonstrates continued momentum.

Bull Case : PBR

The strongest argument for PBR centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 21.6% and operating margin at 32.0%.

Bear Case : MS

The primary concerns for MS are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 3.45 is elevated, increasing financial risk.

Bear Case : PBR

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

Key Dynamics to Monitor

MS profiles as a growth stock while PBR is a value 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 16.3% — sustainability is the question.

PBR generates stronger free cash flow (3.3B), providing more financial flexibility.

Bottom Line

MS scores higher overall (71/100 vs 66/100), backed by strong 24.7% margins and 16.3% revenue growth. PBR offers better value entry with a 89.6% 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.

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.

Petroleo Brasileiro Petrobras SA ADR

ENERGY · OIL & GAS INTEGRATED · USA

Petrleo Brasileiro SA - Petrobras produces and sells oil and gas in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

Visit Website →

Want to dig deeper into these stocks?