MS vs Evercore Which Is a Smarter Choice?

Both MS (Morgan Stanley) and Evercore are well-known financial services companies that offer a range of services including investment banking, asset management, and wealth management. While both companies have a solid reputation in the financial industry, there are some key differences between them. MS is a larger, more established firm with a global presence, while Evercore is a smaller, more specialized boutique firm. Investors looking to invest in these stocks should carefully consider their individual profiles and goals to make an informed decision.

MS or Evercore?

When comparing MS and Evercore, 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 MS and Evercore.

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. MS has a dividend yield of 7.14%, while Evercore has a dividend yield of 1.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. MS reports a 5-year dividend growth of 0.00% year and a payout ratio of 68.74%. On the other hand, Evercore reports a 5-year dividend growth of 9.57% year and a payout ratio of 41.73%.

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 MS P/E ratio at 6.42 and Evercore's P/E ratio at 35.26. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. MS P/B ratio is 0.78 while Evercore's P/B ratio is 7.26.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, MS has seen a 5-year revenue growth of -0.10%, while Evercore's is 0.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with MS's ROE at 12.35% and Evercore's ROE at 21.04%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.79 for MS and $293.35 for Evercore. Over the past year, MS's prices ranged from HK$0.79 to HK$1.06, with a yearly change of 34.18%. Evercore's prices fluctuated between $153.23 and $324.06, with a yearly change of 111.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.