WallStSmart

Morgan Stanley (MS)vsTeradyne Inc (TER)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Morgan Stanley generates 2104% more annual revenue ($70.30B vs $3.19B). MS leads profitability with a 24.0% profit margin vs 17.4%. TER appears more attractively valued with a PEG of 1.61. MS earns a higher WallStSmart Score of 76/100 (B+).

MS

Strong Buy

76

out of 100

Grade: B+

Growth: 8.0Profit: 9.0Value: 10.0Quality: 4.8
Piotroski: 3/9

TER

Strong Buy

70

out of 100

Grade: B

Growth: 10.0Profit: 8.5Value: 4.7Quality: 6.8
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MSUndervalued (+60.0%)

Margin of Safety

+60.0%

Fair Value

$415.17

Current Price

$165.87

$249.30 discount

UndervaluedFair: $415.17Overvalued
TERSignificantly Overvalued (-105.7%)

Margin of Safety

-105.7%

Fair Value

$156.31

Current Price

$320.14

$163.83 premium

UndervaluedFair: $156.31Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MS6 strengths · Avg: 8.8/10
Market CapQuality
$256.39B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Profit MarginProfitability
24.0%9/10

Keeps 24 of every $100 in revenue as profit

P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.7%8/10

Earnings expanding 20.7% YoY

TER4 strengths · Avg: 9.8/10
Operating MarginProfitability
30.3%10/10

Strong operational efficiency at 30.3%

Revenue GrowthGrowth
43.9%10/10

Revenue surging 43.9% year-over-year

EPS GrowthGrowth
81.4%10/10

Earnings expanding 81.4% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Areas to Watch

MS3 concerns · Avg: 3.0/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-4.60B2/10

Negative free cash flow — burning cash

TER3 concerns · Avg: 3.3/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

Price/BookValuation
17.9x4/10

Trading at 17.9x book value

P/E RatioValuation
87.1x2/10

Premium valuation, high expectations priced in

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 24.0% and operating margin at 38.6%. Revenue growth of 11.0% demonstrates continued momentum.

Bull Case : TER

The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 17.4% and operating margin at 30.3%. Revenue growth of 43.9% demonstrates continued momentum.

Bear Case : MS

The primary concerns for MS are PEG Ratio, Piotroski F-Score, Free Cash Flow.

Bear Case : TER

The primary concerns for TER are PEG Ratio, Price/Book, P/E Ratio. A P/E of 87.1x leaves little room for execution misses.

Key Dynamics to Monitor

MS profiles as a mature stock while TER is a growth play — different risk/reward profiles.

TER carries more volatility with a beta of 1.80 — expect wider price swings.

TER is growing revenue faster at 43.9% — sustainability is the question.

TER generates stronger free cash flow (219M), providing more financial flexibility.

Bottom Line

MS scores higher overall (76/100 vs 70/100), backed by strong 24.0% margins and 11.0% 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.

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.

Teradyne Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.

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