ALD vs MS Which Performs Better?

ALD and MS stocks are two distinct investment opportunities that cater to different risk appetites and financial goals. ALD, or Automatic Data Processing, is a stable and established company in the payroll and human resources industry, offering consistent returns for more conservative investors. On the other hand, MS, or Morgan Stanley, operates in the volatile financial services sector, providing potentially higher returns for risk-tolerant individuals. Understanding the differences between these two stocks can help investors make informed decisions based on their investment objectives.

ALD or MS?

When comparing ALD and MS, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ALD and MS.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ALD has a dividend yield of 6.85%, while MS has a dividend yield of 7.32%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ALD reports a 5-year dividend growth of 14.02% year and a payout ratio of 0.00%. On the other hand, MS reports a 5-year dividend growth of 0.00% year and a payout ratio of 68.74%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ALD P/E ratio at 4.34 and MS's P/E ratio at 6.26. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ALD P/B ratio is 0.51 while MS's P/B ratio is 0.76.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ALD has seen a 5-year revenue growth of 0.31%, while MS's is -0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ALD's ROE at 11.97% and MS's ROE at 12.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €6.65 for ALD and HK$0.80 for MS. Over the past year, ALD's prices ranged from €5.11 to €10.77, with a yearly change of 110.76%. MS's prices fluctuated between HK$0.76 and HK$1.06, with a yearly change of 39.47%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.