SCHW vs. MS, GS, RJF, LPLA, SF, EVR, LAZ, BGC, PIPR, and OPY
Should you be buying Charles Schwab stock or one of its competitors? The main competitors of Charles Schwab include Morgan Stanley (MS), The Goldman Sachs Group (GS), Raymond James (RJF), LPL Financial (LPLA), Stifel Financial (SF), Evercore (EVR), Lazard (LAZ), BGC Group (BGC), Piper Sandler Companies (PIPR), and Oppenheimer (OPY). These companies are all part of the "investment banking & brokerage" industry.
Morgan Stanley (NYSE:MS) and Charles Schwab (NYSE:SCHW) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, media sentiment, community ranking, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.
In the previous week, Charles Schwab had 57 more articles in the media than Morgan Stanley. MarketBeat recorded 73 mentions for Charles Schwab and 16 mentions for Morgan Stanley. Charles Schwab's average media sentiment score of 0.72 beat Morgan Stanley's score of 0.37 indicating that Morgan Stanley is being referred to more favorably in the media.
Morgan Stanley has higher revenue and earnings than Charles Schwab. Morgan Stanley is trading at a lower price-to-earnings ratio than Charles Schwab, indicating that it is currently the more affordable of the two stocks.
84.2% of Morgan Stanley shares are held by institutional investors. Comparatively, 84.4% of Charles Schwab shares are held by institutional investors. 0.2% of Morgan Stanley shares are held by company insiders. Comparatively, 6.6% of Charles Schwab shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Charles Schwab has a net margin of 26.14% compared to Charles Schwab's net margin of 9.57%. Morgan Stanley's return on equity of 19.25% beat Charles Schwab's return on equity.
Morgan Stanley has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Charles Schwab has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Morgan Stanley presently has a consensus price target of $98.30, suggesting a potential upside of 0.47%. Charles Schwab has a consensus price target of $74.65, suggesting a potential upside of 1.81%. Given Morgan Stanley's higher probable upside, analysts clearly believe Charles Schwab is more favorable than Morgan Stanley.
Morgan Stanley pays an annual dividend of $3.40 per share and has a dividend yield of 3.5%. Charles Schwab pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. Morgan Stanley pays out 61.9% of its earnings in the form of a dividend. Charles Schwab pays out 41.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Morgan Stanley has increased its dividend for 10 consecutive years and Charles Schwab has increased its dividend for 2 consecutive years. Morgan Stanley is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Morgan Stanley received 348 more outperform votes than Charles Schwab when rated by MarketBeat users. However, 63.25% of users gave Charles Schwab an outperform vote while only 60.94% of users gave Morgan Stanley an outperform vote.
Summary
Charles Schwab beats Morgan Stanley on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SCHW and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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