Comprehensive Stock Comparison
Compare Tradeweb Markets Inc. (TW) vs Morgan Stanley (MS) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | TW | 18.9% revenue growth vs MS's 16.8% |
| Value | TW | PEG 0.91 vs 1.66 |
| Quality / Margins | TW | 39.6% net margin vs MS's 13.0% |
| Stability / Safety | TW | Beta 0.43 vs MS's 1.35, lower leverage |
| Dividends | MS | 2.3% yield, 11-year raise streak, vs TW's 0.4% |
| Momentum (1Y) | MS | +28.0% vs TW's -8.6% |
| Efficiency (ROA) | TW | 9.9% ROA vs MS's 1.2%, ROIC 9.0% vs 2.9% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Tradeweb operates electronic marketplaces for institutional fixed income and derivatives trading. It generates revenue primarily from transaction fees — roughly 80% of revenue — with the remainder from subscription and other fees for data and analytics services. The company's moat lies in its deep institutional network, regulatory compliance infrastructure, and the liquidity network effects that come from connecting over 2,500 clients across 45 markets.
Morgan Stanley is a global investment bank and wealth management firm that provides financial services to institutions, corporations, and individuals. It generates revenue primarily through investment banking fees (~30%), wealth management fees (~40%), and trading & sales activities (~25%), with the remainder from investment management. The company's competitive advantage lies in its elite brand reputation, global institutional relationships, and integrated platform that connects investment banking with wealth management.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
MS leads in 3 of 6 categories (Valuation Metrics, Total Returns). TW leads in 2 (Financial Metrics, Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
MS is the larger business by revenue, generating $103.1B annually — 50.3x TW's $2.1B. TW is the more profitable business, keeping 39.6% of every revenue dollar as net income compared to MS's 13.0%.
| Metric | TWTradeweb Markets … | MSMorgan Stanley |
|---|---|---|
| RevenueTrailing 12 months | $2.1B | $103.1B |
| EBITDAEarnings before interest/tax | $1.1B | $26.3B |
| Net IncomeAfter-tax profit | $813M | $16.2B |
| Free Cash FlowCash after capex | $1.1B | -$6.7B |
| Gross MarginGross profit ÷ Revenue | +66.1% | +55.6% |
| Operating MarginEBIT ÷ Revenue | +40.3% | +17.1% |
| Net MarginNet income ÷ Revenue | +39.6% | +13.0% |
| FCF MarginFCF ÷ Revenue | +54.9% | -2.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +128.8% | +48.9% |
Valuation Metrics
At 20.9x trailing earnings, MS trades at a 36% valuation discount to TW's 32.6x P/E. Adjusting for growth (PEG ratio), TW offers better value at 0.96x vs MS's 2.35x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | TWTradeweb Markets … | MSMorgan Stanley |
|---|---|---|
| Market CapShares × price | $29.0B | $264.9B |
| Enterprise ValueMkt cap + debt − cash | $27.1B | $549.6B |
| Trailing P/EPrice ÷ TTM EPS | 32.61x | 20.94x |
| Forward P/EPrice ÷ next-FY EPS est. | 30.83x | 14.79x |
| PEG RatioP/E ÷ EPS growth rate | 0.96x | 2.35x |
| EV / EBITDAEnterprise value multiple | 25.14x | 24.15x |
| Price / SalesMarket cap ÷ Revenue | 14.14x | 2.57x |
| Price / BookPrice ÷ Book value/share | 3.68x | 2.54x |
| Price / FCFMarket cap ÷ FCF | 25.75x | — |
Profitability & Efficiency
MS delivers a 14.6% return on equity — every $100 of shareholder capital generates $15 in annual profit, vs $11 for TW. TW carries lower financial leverage with a 0.02x debt-to-equity ratio, signaling a more conservative balance sheet compared to MS's 3.42x. On the Piotroski fundamental quality scale (0–9), TW scores 8/9 vs MS's 5/9, reflecting strong financial health.
| Metric | TWTradeweb Markets … | MSMorgan Stanley |
|---|---|---|
| ROE (TTM)Return on equity | +11.3% | +14.6% |
| ROA (TTM)Return on assets | +9.9% | +1.2% |
| ROICReturn on invested capital | +9.0% | +2.9% |
| ROCEReturn on capital employed | +11.1% | +3.8% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 5 |
| Debt / EquityFinancial leverage | 0.02x | 3.42x |
| Net DebtTotal debt minus cash | -$1.9B | $284.7B |
| Cash & Equiv.Liquid assets | $2.1B | $75.7B |
| Total DebtShort + long-term debt | $139M | $360.5B |
| Interest CoverageEBIT ÷ Interest expense | 606.34x | 0.44x |
Total Returns (with DRIP)
A $10,000 investment in MS five years ago would be worth $23,095 today (with dividends reinvested), compared to $16,970 for TW. Over the past 12 months, MS leads with a +28.0% total return vs TW's -8.6%. The 3-year compound annual growth rate (CAGR) favors MS at 22.5% vs TW's 20.6% — a key indicator of consistent wealth creation.
| Metric | TWTradeweb Markets … | MSMorgan Stanley |
|---|---|---|
| YTD ReturnYear-to-date | +16.1% | -7.9% |
| 1-Year ReturnPast 12 months | -8.6% | +28.0% |
| 3-Year ReturnCumulative with dividends | +75.6% | +83.8% |
| 5-Year ReturnCumulative with dividends | +69.7% | +131.0% |
| 10-Year ReturnCumulative with dividends | +251.0% | +662.8% |
| CAGR (3Y)Annualised 3-year return | +20.6% | +22.5% |
Risk & Volatility
TW is the less volatile stock with a 0.43 beta — it tends to amplify market swings less than MS's 1.35 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MS currently trades 86.4% from its 52-week high vs TW's 80.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TWTradeweb Markets … | MSMorgan Stanley |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.43x | 1.35x |
| 52-Week HighHighest price in past year | $152.65 | $192.68 |
| 52-Week LowLowest price in past year | $97.06 | $94.33 |
| % of 52W HighCurrent price vs 52-week peak | +80.7% | +86.4% |
| RSI (14)Momentum oscillator 0–100 | 69.7 | 51.2 |
| Avg Volume (50D)Average daily shares traded | 1.3M | 5.8M |
Analyst Outlook
Wall Street rates TW as "Buy" and MS as "Buy". Consensus price targets imply 17.7% upside for MS (target: $196) vs 14.9% for TW (target: $142). For income investors, MS offers the higher dividend yield at 2.29% vs TW's 0.39%.
| Metric | TWTradeweb Markets … | MSMorgan Stanley |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $141.67 | $196.00 |
| # AnalystsCovering analysts | 28 | 50 |
| Dividend YieldAnnual dividend ÷ price | +0.4% | +2.3% |
| Dividend StreakConsecutive years of raises | 5 | 11 |
| Dividend / ShareAnnual DPS | $0.48 | $3.81 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.4% | +1.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Tradeweb Markets In… (TW) | 100 | 204.6 | +104.6% |
| Morgan Stanley (MS) | 100 | 398.24 | +298.2% |
Morgan Stanley (MS) returned +131% over 5 years vs Tradeweb Markets In… (TW)'s +70%. A $10,000 investment in MS 5 years ago would be worth $23,095 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Tradeweb Markets In… (TW) | $492M | $2.1B | +317.0% |
| Morgan Stanley (MS) | $36.0B | $103.1B | +186.3% |
Tradeweb Markets Inc.'s revenue grew from $492M (2016) to $2.1B (2025) — a 17.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Tradeweb Markets In… (TW) | 18.9% | 39.6% | +109.2% |
| Morgan Stanley (MS) | 16.6% | 13.0% | -21.8% |
Tradeweb Markets Inc.'s net margin went from 19% (2016) to 40% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Tradeweb Markets In… (TW) | 41.8 | 28.4 | -32.1% |
| Morgan Stanley (MS) | 17 | 15.8 | -7.1% |
Tradeweb Markets Inc. has traded in a 28x–92x P/E range over 7 years; current trailing P/E is ~33x. Morgan Stanley has traded in a 8x–18x P/E range over 8 years; current trailing P/E is ~21x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Tradeweb Markets In… (TW) | 0.41 | 3.78 | +822.0% |
| Morgan Stanley (MS) | 2.92 | 7.95 | +172.3% |
Tradeweb Markets Inc.'s EPS grew from $0.41 (2016) to $3.78 (2025) — a 28% CAGR.
Chart 6Free Cash Flow — 5 Years
Tradeweb Markets Inc. generated $1B FCF in 2025 (+114% vs 2021). Morgan Stanley generated $-2B FCF in 2024 (-107% vs 2021).
TW vs MS: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TW or MS a better buy right now?
Morgan Stanley (MS) offers the better valuation at 20.9x trailing P/E (14.8x forward), making it the more compelling value choice. Analysts rate Tradeweb Markets Inc. (TW) a "Buy" — based on 28 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — TW or MS?
On trailing P/E, Morgan Stanley (MS) is the cheapest at 20.9x versus Tradeweb Markets Inc. at 32.6x. On forward P/E, Morgan Stanley is actually cheaper at 14.8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Tradeweb Markets Inc. wins at 0.91x versus Morgan Stanley's 1.66x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — TW or MS?
Over the past 5 years, Morgan Stanley (MS) delivered a total return of +131.0%, compared to +69.7% for Tradeweb Markets Inc. (TW). A $10,000 investment in MS five years ago would be worth approximately $23K today (assuming dividends reinvested). Over 10 years, the gap is even starker: MS returned +662.8% versus TW's +251.0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — TW or MS?
By beta (market sensitivity over 5 years), Tradeweb Markets Inc. (TW) is the lower-risk stock at 0.43β versus Morgan Stanley's 1.35β — meaning MS is approximately 217% more volatile than TW relative to the S&P 500. On balance sheet safety, Tradeweb Markets Inc. (TW) carries a lower debt/equity ratio of 2% versus 3% for Morgan Stanley — giving it more financial flexibility in a downturn.
05Which has better profit margins — TW or MS?
Tradeweb Markets Inc. (TW) is the more profitable company, earning 39.6% net margin versus 13.0% for Morgan Stanley — meaning it keeps 39.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TW leads at 40.3% versus 17.1% for MS. At the gross margin level — before operating expenses — TW leads at 66.1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is TW or MS more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Tradeweb Markets Inc. (TW) is the more undervalued stock at a PEG of 0.91x versus Morgan Stanley's 1.66x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Morgan Stanley (MS) trades at 14.8x forward P/E versus 30.8x for Tradeweb Markets Inc. — 16.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MS: 17.7% to $196.00.
07Which pays a better dividend — TW or MS?
All stocks in this comparison pay dividends. Morgan Stanley (MS) offers the highest yield at 2.3%, versus 0.4% for Tradeweb Markets Inc. (TW).
08Is TW or MS better for a retirement portfolio?
For long-horizon retirement investors, Tradeweb Markets Inc. (TW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.43), +251.0% 10Y return). Both have compounded well over 10 years (TW: +251.0%, MS: +662.8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between TW and MS?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. MS pays a dividend while TW does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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