Brokers and exchanges · 16/36 against 18/36 checks · to 2026-09-08
MS vs SCHW.
Morgan StanleyAn investment bank and, increasingly, a wealth manager after buying E*Trade and Eaton Vance.
Charles SchwabThe largest US retail broker and custodian, earning most of its money on client cash.→Morgan Stanley (MS) and Charles Schwab (SCHW) are within reach of each other at $339.6B and $184.8B, and on the filings Charles Schwab passes more, 18 checks of 36 against 16.
Which passes more checks?
widest gap first→The two are furthest apart on Health, where Charles Schwab passes 3 more of the six.
| MS | SCHW | |
|---|---|---|
| Health | 0/6 | 3/6 |
| Value | 2/6 | 1/6 |
| Growth | 4/6 | 3/6 |
| Quality | 2/6 | 3/6 |
| Shareholder returns | 4/6 | 5/6 |
| Trend analysis | 4/6 | 3/6 |
| All checks | 16/36 | 18/36 |
→Morgan Stanley turns over $78.0B to Charles Schwab's $26.0B, 3.0 times as much. Morgan Stanley keeps 25.8% of revenue as profit against 4.8% at Charles Schwab.
Which balance sheet is stronger?
→Charles Schwab carries much the lighter balance sheet, 0.73x of debt to equity against 3.29x - which matters most in the year a downturn arrives, not this one.
| MS | SCHW | |
|---|---|---|
| Debt / equity | 3.29x | 0.73x |
| Interest coverage | - | - |
| Cash and short-term investments | $160.1B | $40.6B |
Which is cheaper?
→Morgan Stanley is the cheaper of the two on earnings, 17.1x against 154.3x. Against their own histories, Morgan Stanley is above its 9.3x median and Charles Schwab is above its 24.9x.
| MS | SCHW | |
|---|---|---|
| Share price | $216.24 | $106.87 |
| Market cap | $339.6B | $184.8B |
| P/E | 17.1x | 154.3x |
| P/E, own median own 11-year median / own 11-year median | 9.3x | 24.9x |
| P/S | 4.4x | 7.1x |
| Free cash flow yield | - | 5.8% |
Which is growing faster, MS or SCHW?
→Charles Schwab grew revenue faster last year, +20.3% against +18.0% at Morgan Stanley - 2 points apart. Over three years the order is the same, Morgan Stanley at +9.6% and Charles Schwab at +4.8%.
| MS | SCHW | |
|---|---|---|
| Revenue (TTM) | $78.0B | $26.0B |
| Revenue growth, 1 year | +18.0% | +20.3% |
| Revenue CAGR, 3 years | +9.6% | +4.8% |
| Net income (TTM) | $20.2B | $1.3B |
| Free cash flow (TTM) | - | $10.8B |
Which keeps more of each sale?
| MS | SCHW | |
|---|---|---|
| Gross margin | - | - |
| Operating margin | - | - |
| Return on equity | 17.3% | 2.5% |
Which hands more back to owners?
→Both pay: Morgan Stanley yields the more at 1.9% against 1.3%. A yield rises when a price falls, so read it beside the payout checks in each report.
| MS | SCHW | |
|---|---|---|
| Dividend yield | 1.9% | 1.3% |
| Payout ratio | 32.7% | 185.9% |
| Years of unbroken dividend | - | - |
Where they differ most
the checks behind the gapHealth: Charles Schwab 3 ahead
- Debt isn't dominating 0.73 vs 1.00
- Converts sales to cash better than its sector 43.9% vs 35.3% (sector 70th pct, n=76)
- Self-funding TTM free cash flow $10.8B
- Leverage is under control 0.93 vs 0.60
- Debt isn't dominating 3.29 vs 1.00
- Debt trending the right way debt/equity 3.29 now vs 2.16 five years ago
Value: Morgan Stanley 1 ahead
- Earnings yield beats a long bond (4%) 5.9% vs 4.0%
- Price isn't outrunning growth PEG 0.95
- Earnings yield beats a long bond (4%) 0.6% vs 4.0%
- Price isn't outrunning growth PEG 17.40