Nomura vs Morgan Stanley Which Is More Lucrative?

Nomura Holdings and Morgan Stanley are two of the largest global investment banks, each with a significant presence in the financial markets. Both companies have a strong reputation for their expertise in advisory services, asset management, and securities trading. However, they have distinct business models and areas of focus, which can impact their performance in the stock market. Investors often compare Nomura and Morgan Stanley stocks to assess their growth potential, financial stability, and overall return on investment.

Nomura or Morgan Stanley?

When comparing Nomura 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 Nomura 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. Nomura has a dividend yield of 1.35%, while Morgan Stanley has a dividend yield of 2.79%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nomura reports a 5-year dividend growth of 0.00% year and a payout ratio of 8.78%. 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 Nomura P/E ratio at 9.83 and Morgan Stanley's P/E ratio at 18.07. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nomura P/B ratio is 0.82 while Morgan Stanley's P/B ratio is 1.95.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nomura has seen a 5-year revenue growth of 0.03%, while Morgan Stanley's is 0.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nomura's ROE at 8.20% 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 $5.94 for Nomura and $126.72 for Morgan Stanley. Over the past year, Nomura's prices ranged from $4.30 to $6.62, with a yearly change of 53.95%. 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.