Morgan Stanley vs UBS Which Performs Better?

Morgan Stanley and UBS are two prominent and well-established financial institutions that are actively traded on the stock market. Both companies provide a range of financial services such as wealth management, investment banking, and asset management. Investors often compare the performance of these two stocks to determine which may be a better investment opportunity. Understanding the financial health, growth potential, and market trends of Morgan Stanley and UBS can help investors make informed decisions about which stock may be the most suitable for their portfolio.

Morgan Stanley or UBS?

When comparing Morgan Stanley and UBS, 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 UBS.

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 2.72%, while UBS has a dividend yield of 2.11%. 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 53.87%. On the other hand, UBS reports a 5-year dividend growth of -15.64% year and a payout ratio of 55.02%.

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 18.49 and UBS's P/E ratio at 25.93. 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 2.00 while UBS's P/B ratio is 1.20.

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 0.40%, while UBS's is 1.91%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Morgan Stanley's ROE at 11.12% and UBS's ROE at 4.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $129.42 for Morgan Stanley and $32.72 for UBS. Over the past year, Morgan Stanley's prices ranged from $79.62 to $136.24, with a yearly change of 71.11%. UBS's prices fluctuated between $26.00 and $33.34, with a yearly change of 28.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.