Morgan Stanley vs Ameriprise Financial

Morgan Stanley and Ameriprise Financial are two well-known financial services companies that offer a range of wealth management and investment services to clients. Both companies are publicly traded on the stock market and are considered leaders in the financial industry. In comparing the stocks of Morgan Stanley and Ameriprise Financial, investors may consider factors such as financial performance, market trends, and company outlook in order to make informed investment decisions.

Morgan Stanley or Ameriprise Financial?

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

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

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

Growth Investors:

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

Retail Investors:

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