Morgan Stanley (MS)vsRoyal Bank of Canada (RY)
MS
Morgan Stanley
$158.93
-0.24%
FINANCIAL SERVICES · Cap: $250.61B
RY
Royal Bank of Canada
$162.35
-1.14%
FINANCIAL SERVICES · Cap: $229.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Morgan Stanley generates 11% more annual revenue ($70.30B vs $63.42B). RY leads profitability with a 33.1% profit margin vs 24.0%. MS appears more attractively valued with a PEG of 1.78. MS earns a higher WallStSmart Score of 76/100 (B+).
MS
Strong Buy76
out of 100
Grade: B+
RY
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.6%
Fair Value
$413.17
Current Price
$158.93
$254.24 discount
Margin of Safety
+43.9%
Fair Value
$304.40
Current Price
$162.35
$142.05 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Keeps 24 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 20.7% YoY
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Negative free cash flow — burning cash
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.1% and operating margin at 46.2%.
Bear Case : MS
The primary concerns for MS are PEG Ratio, Piotroski F-Score, Free Cash Flow.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
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.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Monitor CAPITAL MARKETS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MS scores higher overall (76/100 vs 68/100), backed by strong 24.0% margins and 11.0% revenue growth. RY offers better value entry with a 43.9% 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.
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.
Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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