Ameriprise Financial vs Morgan Stanley

Ameriprise Financial and Morgan Stanley are two prominent financial services companies that are well-known for their extensive range of investment, wealth management, and advisory services. Both companies have a strong presence in the financial industry, with Ameriprise focusing on financial planning for individuals and families, while Morgan Stanley offers services to institutional clients and high-net-worth individuals. Investors often compare the two companies' stocks to determine which may be a better investment opportunity based on factors such as financial performance, market trends, and overall stability.

Ameriprise Financial or Morgan Stanley?

When comparing Ameriprise Financial and Morgan Stanley, 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 Ameriprise Financial and Morgan Stanley.

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. Ameriprise Financial has a dividend yield of 1.11%, while Morgan Stanley has a dividend yield of 3.1%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ameriprise Financial reports a 5-year dividend growth of 8.47% year and a payout ratio of 18.25%. On the other hand, Morgan Stanley reports a 5-year dividend growth of 24.19% year and a payout ratio of 57.05%.

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 Ameriprise Financial P/E ratio at 16.93 and Morgan Stanley's P/E ratio at 17.18. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ameriprise Financial P/B ratio is 10.40 while Morgan Stanley's P/B ratio is 1.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ameriprise Financial has seen a 5-year revenue growth of 0.67%, while Morgan Stanley's is 0.49%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ameriprise Financial's ROE at 66.60% and Morgan Stanley's ROE at 10.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $509.41 for Ameriprise Financial and $112.03 for Morgan Stanley. Over the past year, Ameriprise Financial's prices ranged from $306.63 to $517.60, with a yearly change of 68.80%. Morgan Stanley's prices fluctuated between $69.42 and $116.06, with a yearly change of 67.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.