Evercore vs Morgan Stanley Which Is More Profitable?

Evercore and Morgan Stanley are two prominent and well-established financial firms in the investment banking industry. Evercore, known for its boutique approach and focus on providing personalized financial advisory services, is often favored by clients seeking specialized expertise. On the other hand, Morgan Stanley, a global financial services firm, offers a wide range of investment banking and wealth management services. Both companies have strong track records and competitive advantages in their respective fields, making them attractive options for investors seeking exposure to the financial sector.

Evercore or Morgan Stanley?

When comparing Evercore 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 Evercore 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. Evercore has a dividend yield of 1.06%, while Morgan Stanley has a dividend yield of 2.78%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Evercore reports a 5-year dividend growth of 9.57% year and a payout ratio of 41.73%. On the other hand, Morgan Stanley reports a 5-year dividend growth of 24.19% year and a payout ratio of 53.87%.

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 Evercore P/E ratio at 35.76 and Morgan Stanley's P/E ratio at 18.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Evercore P/B ratio is 7.36 while Morgan Stanley's P/B ratio is 1.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Evercore has seen a 5-year revenue growth of 0.41%, while Morgan Stanley's is 0.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Evercore's ROE at 21.04% and Morgan Stanley's ROE at 11.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $295.25 for Evercore and $127.36 for Morgan Stanley. Over the past year, Evercore's prices ranged from $162.38 to $324.06, with a yearly change of 99.57%. Morgan Stanley's prices fluctuated between $83.09 and $136.24, with a yearly change of 63.97%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.