Morgan Stanley (MS)vsRoyal Bank of Canada (RY)
MS
Morgan Stanley
$210.42
+0.72%
FINANCIAL SERVICES · Cap: $343.48B
RY
Royal Bank of Canada
$209.51
-0.29%
FINANCIAL SERVICES · Cap: $291.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Morgan Stanley generates 18% more annual revenue ($77.83B vs $65.72B). RY leads profitability with a 33.7% profit margin vs 25.9%. MS appears more attractively valued with a PEG of 2.10. MS earns a higher WallStSmart Score of 73/100 (B).
MS
Strong Buy73
out of 100
Grade: B
RY
Strong Buy67
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 41.6%
Earnings expanding 62.4% YoY
Keeps 26 of every $100 in revenue as profit
Attractively priced relative to earnings
Revenue surging 28.0% year-over-year
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Generating 20.8B in free cash flow
16.1% revenue growth
Earnings expanding 27.5% YoY
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MS
The strongest argument for MS centers on Market Cap, Operating Margin, EPS Growth. Profitability is solid with margins at 25.9% and operating margin at 41.6%. Revenue growth of 28.0% 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 33.7% 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.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.77 is elevated, increasing financial risk.
Key Dynamics to Monitor
MS carries more volatility with a beta of 1.22 — expect wider price swings.
MS is growing revenue faster at 28.0% — sustainability is the question.
RY generates stronger free cash flow (20.8B), providing more financial flexibility.
Monitor CAPITAL MARKETS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MS scores higher overall (73/100 vs 67/100), backed by strong 25.9% margins and 28.0% 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.
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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