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MS vs. SCHW: Morgan Stanley vs. Charles Schwab Stock Comparison

How do Morgan Stanley (MS) and Charles Schwab (SCHW) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Morgan Stanley (MS) and Charles Schwab (SCHW) are both classified in the Investment Banking & Brokerage sub-industry within the broader Capital Markets industry, placing them in the closest GICS peer bucket.

Company profile comparison for Morgan Stanley (MS) and Charles Schwab (SCHW)
Profile ItemMSSCHW
NameMorgan StanleyCharles Schwab Corporation
Country/RegionUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS Industry GroupFinancial ServicesFinancial Services
GICS IndustryCapital MarketsCapital Markets
GICS Sub-IndustryInvestment Banking & BrokerageInvestment Banking & Brokerage
Market Capitalization341.69 billion USD192.11 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateFebruary 23, 1993September 22, 1987
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MS
SCHW
GSPC
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Morgan Stanley (MS) vs. Charles Schwab (SCHW), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Morgan Stanley (MS) and Charles Schwab (SCHW). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Morgan Stanley (MS) and Charles Schwab (SCHW). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Morgan Stanley (MS) and Charles Schwab (SCHW)
MetricMSSCHW
Total Return (1Y)49.68%15.06%
Total Return (3Y, Annualized)39.74%23.29%
Total Return (5Y, Annualized)19.65%9.92%

Risk Profile

Drawdown History

MS
SCHW
GSPC
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Morgan Stanley (MS) vs. Charles Schwab (SCHW), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Morgan Stanley (MS) and Charles Schwab (SCHW). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Morgan Stanley (MS) and Charles Schwab (SCHW)
MetricMSSCHW
Volatility (1Y, Annualized)27.83%24.96%
Beta (5Y)1.220.76
Max Drawdown (5Y)-32.38%-49.70%
Avg. Volume (3M)5.83M10.24M

Risk-Adjusted Performance

Risk-Return Positioning

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MS and SCHW are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Morgan Stanley (MS) and Charles Schwab (SCHW)
MetricMSSCHW
Sharpe Ratio (1Y)1.640.44
Sortino Ratio (1Y)2.430.59

Profitability

ROE (TTM)

Both Morgan Stanley (MS) at 17.97% and Charles Schwab (SCHW) at 20.27% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

MS

Financial Services industry group

17.97%

Max
48.53%
Q3
22.22%
MS
17.97%
Median
12.75%
Q1
4.09%
Min
-22.61%

SCHW

Financial Services industry group

20.27%

Max
48.53%
Q3
22.22%
SCHW
20.27%
Median
12.75%
Q1
4.09%
Min
-22.61%
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Morgan Stanley (MS) vs. Charles Schwab (SCHW): A comparison of their ROE against the Financial Services industry group benchmark.

Net Margin (TTM)

Charles Schwab (SCHW) at 38.79% retains a top-quartile share of revenue as profit, ahead of Morgan Stanley (MS) at 25.90%, which keeps about the industry-typical share.

MS

Financial Services industry group

25.90%

Max
66.61%
Q3
29.41%
MS
25.90%
Median
16.08%
Q1
4.44%
Min
-30.54%

SCHW

Financial Services industry group

38.79%

Max
66.61%
SCHW
38.79%
Q3
29.41%
Median
16.08%
Q1
4.44%
Min
-30.54%
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Morgan Stanley (MS) vs. Charles Schwab (SCHW): A comparison of their net margin against the Financial Services industry group benchmark.

Operating Margin (TTM)

Both Morgan Stanley (MS) at 41.57% and Charles Schwab (SCHW) at 52.28% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

MS

Financial Services industry group

41.57%

Max
96.23%
Q3
53.97%
MS
41.57%
Median
28.94%
Q1
11.79%
Min
-46.79%

SCHW

Financial Services industry group

52.28%

Max
96.23%
Q3
53.97%
SCHW
52.28%
Median
28.94%
Q1
11.79%
Min
-46.79%
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Morgan Stanley (MS) vs. Charles Schwab (SCHW): A comparison of their operating margin against the Financial Services industry group benchmark.

Profitability Metrics

Profitability metrics for Morgan Stanley (MS) and Charles Schwab (SCHW)
MetricMSSCHW
ROE (TTM)17.97%20.27%
ROA (TTM)1.35%2.07%
Net Margin (TTM)25.90%38.79%
Operating Margin (TTM)41.57%52.28%
Gross Margin (TTM)----

Growth

Revenue Growth

Both Morgan Stanley (MS) at 14.48% and Charles Schwab (SCHW) at 22.01% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Morgan Stanley (MS) vs. Charles Schwab (SCHW): A comparison of their Revenue Growth across different time periods.

EPS Growth

Charles Schwab (SCHW) at 55.52% sits in the top EPS growth quartile, while Morgan Stanley (MS) at 28.43% is closer to the peer norm — faster per-share earnings growth for SCHW.

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Morgan Stanley (MS) vs. Charles Schwab (SCHW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Morgan Stanley (MS) and Charles Schwab (SCHW)
MetricMSSCHW
Revenue Growth (YoY)14.48%22.01%
Revenue Growth (3Y CAGR)9.52%4.83%
EPS Growth (YoY)28.43%55.52%
EPS Growth (3Y CAGR)18.41%9.93%

Financial Strength

Current Ratio (MRQ)

current ratio doesn’t apply on either side: Morgan Stanley (MS) in Financial Services and Charles Schwab (SCHW) in Financial Services both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for both: Morgan Stanley (MS) in Financial Services and Charles Schwab (SCHW) in Financial Services run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.

Financial Strength Metrics

Financial strength metrics for Morgan Stanley (MS) and Charles Schwab (SCHW)
MetricMSSCHW
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Both Morgan Stanley (MS) at 1.90% and Charles Schwab (SCHW) at 1.08% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

MS

Financial Services industry group

1.90%

Max
17.41%
Q3
7.19%
MS
1.90%
Median
1.49%
Q1
0.00%
Min
0.00%

SCHW

Financial Services industry group

1.08%

Max
17.41%
Q3
7.19%
Median
1.49%
SCHW
1.08%
Q1
0.00%
Min
0.00%
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Morgan Stanley (MS) vs. Charles Schwab (SCHW): A comparison of their dividend yield against the Financial Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both Morgan Stanley (MS) at 32.31% and Charles Schwab (SCHW) at 21.49% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.

MS

Financial Services industry group

32.31%

Max
223.44%
Q3
89.87%
MS
32.31%
Median
25.19%
Q1
0.00%
Min
0.00%

SCHW

Financial Services industry group

21.49%

Max
223.44%
Q3
89.87%
Median
25.19%
SCHW
21.49%
Q1
0.00%
Min
0.00%
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Morgan Stanley (MS) vs. Charles Schwab (SCHW): A comparison of their payout ratio against the Financial Services industry group benchmark.

Dividend Metrics

Dividend metrics for Morgan Stanley (MS) and Charles Schwab (SCHW)
MetricMSSCHW
Dividend Yield (TTM)1.90%1.08%
Dividend Payout Ratio (TTM)32.31%21.49%

Valuation

P/E Ratio (TTM)

Both Morgan Stanley (MS) at 17.54 and Charles Schwab (SCHW) at 20.23 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

MS

Financial Services industry group

17.54

Max
50.93
Q3
26.65
MS
17.54
Median
16.33
Q1
10.01
Min
2.15

SCHW

Financial Services industry group

20.23

Max
50.93
Q3
26.65
SCHW
20.23
Median
16.33
Q1
10.01
Min
2.15
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Morgan Stanley (MS) vs. Charles Schwab (SCHW): A comparison of their P/E ratio against the Financial Services industry group benchmark.

P/S Ratio (TTM)

Morgan Stanley (MS) at 4.39 is priced about in line with its industry on P/S ratio, while Charles Schwab (SCHW) at 7.38 sits in the pricier quartile — SCHW costs more per dollar of sales.

MS

Financial Services industry group

4.39

Max
9.98
Q3
4.93
MS
4.39
Median
2.98
Q1
1.55
Min
-1.13

SCHW

Financial Services industry group

7.38

Max
9.98
SCHW
7.38
Q3
4.93
Median
2.98
Q1
1.55
Min
-1.13
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Morgan Stanley (MS) vs. Charles Schwab (SCHW): A comparison of their P/S ratio against the Financial Services industry group benchmark.

P/B Ratio (MRQ)

Morgan Stanley (MS) at 3.21 is valued about in line with its industry on P/B ratio, while Charles Schwab (SCHW) at 4.37 carries an above-peer premium to book — SCHW is pricier on assets.

MS

Financial Services industry group

3.21

Max
7.91
Q3
3.71
MS
3.21
Median
1.60
Q1
0.85
Min
-0.34

SCHW

Financial Services industry group

4.37

Max
7.91
SCHW
4.37
Q3
3.71
Median
1.60
Q1
0.85
Min
-0.34
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Morgan Stanley (MS) vs. Charles Schwab (SCHW): A comparison of their P/B ratio against the Financial Services industry group benchmark.

Valuation Metrics

Valuation metrics for Morgan Stanley (MS) and Charles Schwab (SCHW)
MetricMSSCHW
P/E Ratio (TTM)17.5420.23
P/S Ratio (TTM)4.397.38
P/B Ratio (MRQ)3.214.37
Free Cash Flow Yield (TTM)----