UBS vs MS

For growth investors, Morgan Stanley (MS) is the stronger pick with 16.

8% revenue growth year-over-year, versus -20. 4% for UBS Group AG (UBS). UBS Group AG (UBS) offers the better valuation at 24. 2x trailing P/E (13. 8x forward), making it the more compelling value choice. Analysts rate UBS Group AG (UBS) a "Buy" — based on 29 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.

On trailing P/E, UBS Group AG (UBS) is the cheapest at 24.

2x versus Morgan Stanley at 24. 3x. On forward P/E, UBS Group AG is actually cheaper at 13. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Morgan Stanley wins at 1. 83x versus UBS Group AG's 12. 51x — a reasonable growth-adjusted valuation.

Over the past 5 years, UBS Group AG (UBS) delivered a total return of +212.

5%, compared to +142. 2% for Morgan Stanley (MS). Over 10 years, the gap is even starker: MS returned +739. 4% versus UBS's +238. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), UBS Group AG (UBS) is the lower-risk stock at 1.

17β versus Morgan Stanley's 1. 37β — meaning MS is approximately 17% more volatile than UBS relative to the S&P 500. On balance sheet safety, Morgan Stanley (MS) carries a lower debt/equity ratio of 3% versus 4% for UBS Group AG — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Morgan Stanley (MS) is pulling ahead at 16.

8% versus -20. 4% for UBS Group AG (UBS). On earnings-per-share growth, the picture is similar: Morgan Stanley grew EPS 53. 5% year-over-year, compared to 23. 0% for UBS Group AG. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Morgan Stanley (MS) is the more profitable company, earning 13.

0% net margin versus 10. 4% for UBS Group AG — meaning it keeps 13. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MS leads at 17. 1% versus 11. 9% for UBS. At the gross margin level — before operating expenses — UBS leads at 63. 6%, 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.

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, Morgan Stanley (MS) is the more undervalued stock at a PEG of 1. 83x versus UBS Group AG's 12. 51x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, UBS Group AG (UBS) trades at 13. 8x forward P/E versus 16. 3x for Morgan Stanley — 2. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MS: 6. 5% to $205. 75.

All stocks in this comparison pay dividends.

Morgan Stanley (MS) offers the highest yield at 2. 0%, versus 1. 6% for UBS Group AG (UBS).

For long-horizon retirement investors, Morgan Stanley (MS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (2.

0% yield, +739. 4% 10Y return). Both have compounded well over 10 years (MS: +739. 4%, UBS: +238. 9%), 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.

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.

In terms of investment character: UBS is a mid-cap quality compounder stock; MS is a large-cap high-growth stock. 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.