WallStSmart

Goldman Sachs Group Inc (GS)vsMorgan Stanley (MS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Morgan Stanley generates 19% more annual revenue ($73.17B vs $61.53B). GS leads profitability with a 29.4% profit margin vs 24.7%. GS appears more attractively valued with a PEG of 1.40. GS earns a higher WallStSmart Score of 75/100 (B).

GS

Strong Buy

75

out of 100

Grade: B

Growth: 8.0Profit: 7.5Value: 6.3Quality: 5.0
Piotroski: 5/9

MS

Strong Buy

73

out of 100

Grade: B

Growth: 9.3Profit: 7.5Value: 5.7Quality: 4.8
Piotroski: 3/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GS6 strengths · Avg: 8.8/10
Market CapQuality
$274.13B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.4%10/10

Strong operational efficiency at 38.4%

Profit MarginProfitability
29.4%9/10

Keeps 29 of every $100 in revenue as profit

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
24.3%8/10

Earnings expanding 24.3% YoY

MS6 strengths · Avg: 8.8/10
Market CapQuality
$297.06B10/10

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

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.3%8/10

16.3% revenue growth

Areas to Watch

GS1 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-32.43B2/10

Negative free cash flow — burning cash

MS3 concerns · Avg: 3.0/10
PEG RatioValuation
2.294/10

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

Comparative Analysis Report

WallStSmart Research

Bull Case : GS

The strongest argument for GS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 29.4% and operating margin at 38.4%. Revenue growth of 14.5% demonstrates continued momentum.

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.

Bear Case : GS

The primary concerns for GS are Free Cash Flow.

Bear Case : MS

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

Key Dynamics to Monitor

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

GS carries more volatility with a beta of 1.31 — expect wider price swings.

MS is growing revenue faster at 16.3% — sustainability is the question.

MS generates stronger free cash flow (-4.6B), providing more financial flexibility.

Bottom Line

GS scores higher overall (75/100 vs 73/100), backed by strong 29.4% margins and 14.5% 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.

Goldman Sachs Group Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

The Goldman Sachs Group, Inc., is an American multinational investment bank and financial services company headquartered in New York City. It offers services in investment management, securities, asset management, prime brokerage, and securities underwriting. It also provides investment banking to institutional investors.

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.

Want to dig deeper into these stocks?