WallStSmart

Morgan Stanley (MS)vsRoyal Bank of Canada (RY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Morgan Stanley generates 19% more annual revenue ($79.79B vs $67.15B). RY leads profitability with a 33.9% profit margin vs 25.6%. MS appears more attractively valued with a PEG of 1.61. MS earns a higher WallStSmart Score of 72/100 (B).

MS

Strong Buy

72

out of 100

Grade: B

Growth: 7.3Profit: 8.0Value: 5.7Quality: 4.5
Piotroski: 5/9Altman Z: 0.38

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MS5 strengths · Avg: 9.0/10
Market CapQuality
$288.43B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
39.9%10/10

Strong operational efficiency at 39.9%

Profit MarginProfitability
25.6%9/10

Keeps 26 of every $100 in revenue as profit

P/E RatioValuation
14.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

RY5 strengths · Avg: 9.2/10
Market CapQuality
$281.07B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.9%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
46.4%10/10

Strong operational efficiency at 46.4%

P/E RatioValuation
17.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

MS2 concerns · Avg: 3.0/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.382/10

Distress zone — elevated risk

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
1.894/10

Expensive relative to growth rate

Free Cash FlowQuality
$-28.67B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.881/10

Elevated debt levels

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 25.6% and operating margin at 39.9%. Revenue growth of 10.8% 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 33.9% and operating margin at 46.4%.

Bear Case : MS

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

Bear Case : RY

The primary concerns for RY are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.88 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

MS is growing revenue faster at 10.8% — sustainability is the question.

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

Bottom Line

MS scores higher overall (72/100 vs 68/100), backed by strong 25.6% margins and 10.8% 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.

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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