MS vs. SCHW, GS, BLK, IBKR, HSBC, RY, AXP, PGR, MUFG, and C
Should you be buying Morgan Stanley stock or one of its competitors? The main competitors of Morgan Stanley include Charles Schwab (SCHW), The Goldman Sachs Group (GS), BlackRock (BLK), Interactive Brokers Group (IBKR), HSBC (HSBC), Royal Bank of Canada (RY), American Express (AXP), Progressive (PGR), Mitsubishi UFJ Financial Group (MUFG), and Citigroup (C). These companies are all part of the "finance" sector.
Morgan Stanley (NYSE:MS) and Charles Schwab (NYSE:SCHW) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability, community ranking, media sentiment and earnings.
Charles Schwab has a net margin of 26.14% compared to Morgan Stanley's net margin of 9.57%. Charles Schwab's return on equity of 19.86% beat Morgan Stanley's return on equity.
Morgan Stanley presently has a consensus target price of $98.07, indicating a potential upside of 4.93%. Charles Schwab has a consensus target price of $74.47, indicating a potential downside of 1.13%. Given Morgan Stanley's stronger consensus rating and higher possible upside, equities research analysts plainly believe Morgan Stanley is more favorable than Charles Schwab.
Morgan Stanley received 335 more outperform votes than Charles Schwab when rated by MarketBeat users. However, 63.16% of users gave Charles Schwab an outperform vote while only 61.02% of users gave Morgan Stanley an outperform vote.
84.2% of Morgan Stanley shares are held by institutional investors. Comparatively, 84.4% of Charles Schwab shares are held by institutional investors. 0.2% of Morgan Stanley shares are held by insiders. Comparatively, 6.6% of Charles Schwab shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Morgan Stanley has higher revenue and earnings than Charles Schwab. Morgan Stanley is trading at a lower price-to-earnings ratio than Charles Schwab, indicating that it is currently the more affordable of the two stocks.
Morgan Stanley pays an annual dividend of $3.40 per share and has a dividend yield of 3.6%. Charles Schwab pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. Morgan Stanley pays out 61.9% of its earnings in the form of a dividend. Charles Schwab pays out 41.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
In the previous week, Morgan Stanley had 18 more articles in the media than Charles Schwab. MarketBeat recorded 84 mentions for Morgan Stanley and 66 mentions for Charles Schwab. Morgan Stanley's average media sentiment score of 0.66 beat Charles Schwab's score of 0.61 indicating that Morgan Stanley is being referred to more favorably in the media.
Morgan Stanley has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Charles Schwab has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
Summary
Morgan Stanley beats Charles Schwab on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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