Morgan Stanley (MS)vsRoyal Bank of Canada (RY)
MS
Morgan Stanley
$211.93
+1.87%
FINANCIAL SERVICES · Cap: $343.82B
RY
Royal Bank of Canada
$194.04
-0.48%
FINANCIAL SERVICES · Cap: $277.29B
Smart Verdict
WallStSmart Research — data-driven comparison
Morgan Stanley generates 11% more annual revenue ($73.17B vs $65.72B). RY leads profitability with a 33.7% profit margin vs 24.7%. RY appears more attractively valued with a PEG of 2.53. MS earns a higher WallStSmart Score of 71/100 (B).
MS
Strong Buy71
out of 100
Grade: B
RY
Strong Buy70
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 40.6%
Keeps 25 of every $100 in revenue as profit
16.3% revenue growth
Earnings expanding 31.9% YoY
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Generating 37.3B in free cash flow
Reasonable price relative to book value
16.1% revenue growth
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
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 24.7% and operating margin at 40.6%. Revenue growth of 16.3% 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 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.
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 : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
MS carries more volatility with a beta of 1.22 — expect wider price swings.
MS is growing revenue faster at 16.3% — 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 (71/100 vs 70/100), backed by strong 24.7% margins and 16.3% 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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