SCHW vs. MS, GS, RJF, LPLA, SF, EVR, LAZ, BGC, PIPR, and OPY
Should you be buying Charles Schwab stock or one of its competitors? The main competitors of Charles Schwab include Morgan Stanley (MS), The Goldman Sachs Group (GS), Raymond James (RJF), LPL Financial (LPLA), Stifel Financial (SF), Evercore (EVR), Lazard (LAZ), BGC Group (BGC), Piper Sandler Companies (PIPR), and Oppenheimer (OPY). These companies are all part of the "investment banking & brokerage" industry.
Charles Schwab (NYSE:SCHW) and Morgan Stanley (NYSE:MS) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, media sentiment, community ranking, earnings and profitability.
Morgan Stanley received 348 more outperform votes than Charles Schwab when rated by MarketBeat users. However, 63.22% of users gave Charles Schwab an outperform vote while only 60.96% of users gave Morgan Stanley an outperform vote.
84.4% of Charles Schwab shares are owned by institutional investors. Comparatively, 84.2% of Morgan Stanley shares are owned by institutional investors. 6.6% of Charles Schwab shares are owned by insiders. Comparatively, 0.2% of Morgan Stanley shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
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 19.25% beat Morgan Stanley's return on equity.
Charles Schwab pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. Morgan Stanley pays an annual dividend of $3.40 per share and has a dividend yield of 3.4%. Charles Schwab pays out 41.8% of its earnings in the form of a dividend. Morgan Stanley pays out 61.9% 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.
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.
In the previous week, Charles Schwab had 79 more articles in the media than Morgan Stanley. MarketBeat recorded 107 mentions for Charles Schwab and 28 mentions for Morgan Stanley. Morgan Stanley's average media sentiment score of 0.38 beat Charles Schwab's score of 0.34 indicating that Morgan Stanley is being referred to more favorably in the news media.
Charles Schwab has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Morgan Stanley has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.
Charles Schwab presently has a consensus price target of $75.12, indicating a potential upside of 6.11%. Morgan Stanley has a consensus price target of $98.30, indicating a potential downside of 0.38%. Given Charles Schwab's higher probable upside, analysts plainly believe Charles Schwab is more favorable than Morgan Stanley.
Summary
Charles Schwab beats Morgan Stanley 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 SCHW and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This 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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