Robinhood Markets vs Morgan Stanley Which Should You Buy?

Robinhood Markets and Morgan Stanley are two major players in the financial market, each offering unique advantages for investors. Robinhood has gained popularity in recent years for its commission-free trading, making it a popular choice for beginner investors. On the other hand, Morgan Stanley is a well-established financial powerhouse with a long history of success and a strong reputation in the industry. Both companies offer different investment opportunities and services, making them interesting options for investors looking to diversify their portfolios.

Robinhood Markets or Morgan Stanley?

When comparing Robinhood Markets 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 Robinhood Markets 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. Robinhood Markets has a dividend yield of -%, while Morgan Stanley has a dividend yield of 2.8%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Robinhood Markets reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.86%. 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 Robinhood Markets P/E ratio at 62.91 and Morgan Stanley's P/E ratio at 17.99. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Robinhood Markets P/B ratio is 4.58 while Morgan Stanley's P/B ratio is 1.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Robinhood Markets has seen a 5-year revenue growth of 5.41%, while Morgan Stanley's is 0.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Robinhood Markets's ROE at 7.52% 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 $37.19 for Robinhood Markets and $126.53 for Morgan Stanley. Over the past year, Robinhood Markets's prices ranged from $10.38 to $42.76, with a yearly change of 311.95%. Morgan Stanley's prices fluctuated between $82.57 and $136.24, with a yearly change of 65.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.