Comprehensive Stock Comparison
Compare Futu Holdings Limited (FUTU) 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 | FUTU | 35.8% revenue growth vs MS's 16.8% |
| Value | FUTU | Lower P/E (1.8x vs 14.8x), PEG 0.02 vs 1.66 |
| Quality / Margins | FUTU | 40.1% net margin vs MS's 13.0% |
| Stability / Safety | MS | Beta 1.35 vs FUTU's 1.57 |
| Dividends | MS | 2.3% yield; 11-year raise streak; FUTU pays no meaningful dividend |
| Momentum (1Y) | FUTU | +36.3% vs MS's +28.0% |
| Efficiency (ROA) | FUTU | 4.0% ROA vs MS's 1.2%, ROIC 14.8% 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
Futu Holdings is a digital brokerage and wealth management platform serving investors primarily in Hong Kong and internationally. It makes money through securities trading commissions, margin financing interest, and fund distribution fees — with its core Futubull and Moomoo platforms generating revenue from both retail and institutional clients. The company's key advantage is its integrated digital ecosystem combining trading, market data, and community features that create strong user engagement and switching costs.
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
FUTU leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). MS leads in 2 (Valuation Metrics, Risk & Volatility).
Financial Metrics (TTM)
MS is the larger business by revenue, generating $103.1B annually — 7.6x FUTU's $13.6B. FUTU is the more profitable business, keeping 40.1% of every revenue dollar as net income compared to MS's 13.0%.
| Metric | FUTUFutu Holdings Lim… | MSMorgan Stanley |
|---|---|---|
| RevenueTrailing 12 months | $13.6B | $103.1B |
| EBITDAEarnings before interest/tax | $10.0B | $26.3B |
| Net IncomeAfter-tax profit | $7.9B | $16.2B |
| Free Cash FlowCash after capex | $0 | -$6.7B |
| Gross MarginGross profit ÷ Revenue | +82.0% | +55.6% |
| Operating MarginEBIT ÷ Revenue | +48.7% | +17.1% |
| Net MarginNet income ÷ Revenue | +40.1% | +13.0% |
| FCF MarginFCF ÷ Revenue | +2.3% | -2.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +111.5% | +48.9% |
Valuation Metrics
At 20.9x trailing earnings, MS trades at a 30% valuation discount to FUTU's 30.0x P/E. Adjusting for growth (PEG ratio), FUTU offers better value at 0.32x vs MS's 2.35x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | FUTUFutu Holdings Lim… | MSMorgan Stanley |
|---|---|---|
| Market CapShares × price | $52.9B | $264.9B |
| Enterprise ValueMkt cap + debt − cash | $52.5B | $549.6B |
| Trailing P/EPrice ÷ TTM EPS | 29.96x | 20.94x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.79x | 14.79x |
| PEG RatioP/E ÷ EPS growth rate | 0.32x | 2.35x |
| EV / EBITDAEnterprise value multiple | 60.44x | 24.15x |
| Price / SalesMarket cap ÷ Revenue | 30.46x | 2.57x |
| Price / BookPrice ÷ Book value/share | 5.82x | 2.54x |
| Price / FCFMarket cap ÷ FCF | 13.43x | — |
Profitability & Efficiency
FUTU delivers a 23.8% return on equity — every $100 of shareholder capital generates $24 in annual profit, vs $15 for MS. FUTU carries lower financial leverage with a 0.31x debt-to-equity ratio, signaling a more conservative balance sheet compared to MS's 3.42x. On the Piotroski fundamental quality scale (0–9), MS scores 5/9 vs FUTU's 4/9, reflecting solid financial health.
| Metric | FUTUFutu Holdings Lim… | MSMorgan Stanley |
|---|---|---|
| ROE (TTM)Return on equity | +23.8% | +14.6% |
| ROA (TTM)Return on assets | +4.0% | +1.2% |
| ROICReturn on invested capital | +14.8% | +2.9% |
| ROCEReturn on capital employed | +25.1% | +3.8% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 5 |
| Debt / EquityFinancial leverage | 0.31x | 3.42x |
| Net DebtTotal debt minus cash | -$3.1B | $284.7B |
| Cash & Equiv.Liquid assets | $11.7B | $75.7B |
| Total DebtShort + long-term debt | $8.6B | $360.5B |
| Interest CoverageEBIT ÷ Interest expense | — | 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 $9,101 for FUTU. Over the past 12 months, FUTU leads with a +36.3% total return vs MS's +28.0%. The 3-year compound annual growth rate (CAGR) favors FUTU at 45.2% vs MS's 22.5% — a key indicator of consistent wealth creation.
| Metric | FUTUFutu Holdings Lim… | MSMorgan Stanley |
|---|---|---|
| YTD ReturnYear-to-date | -16.6% | -7.9% |
| 1-Year ReturnPast 12 months | +36.3% | +28.0% |
| 3-Year ReturnCumulative with dividends | +206.4% | +83.8% |
| 5-Year ReturnCumulative with dividends | -9.0% | +131.0% |
| 10-Year ReturnCumulative with dividends | +884.3% | +662.8% |
| CAGR (3Y)Annualised 3-year return | +45.2% | +22.5% |
Risk & Volatility
MS is the less volatile stock with a 1.35 beta — it tends to amplify market swings less than FUTU's 1.57 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 FUTU's 73.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | FUTUFutu Holdings Lim… | MSMorgan Stanley |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.57x | 1.35x |
| 52-Week HighHighest price in past year | $202.53 | $192.68 |
| 52-Week LowLowest price in past year | $70.60 | $94.33 |
| % of 52W HighCurrent price vs 52-week peak | +73.5% | +86.4% |
| RSI (14)Momentum oscillator 0–100 | 46.9 | 51.2 |
| Avg Volume (50D)Average daily shares traded | 1.2M | 5.8M |
Analyst Outlook
Wall Street rates FUTU as "Buy" and MS as "Buy". Consensus price targets imply 51.0% upside for FUTU (target: $225) vs 17.7% for MS (target: $196). MS is the only dividend payer here at 2.29% yield — a key consideration for income-focused portfolios.
| Metric | FUTUFutu Holdings Lim… | MSMorgan Stanley |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $224.70 | $196.00 |
| # AnalystsCovering analysts | 12 | 50 |
| Dividend YieldAnnual dividend ÷ price | — | +2.3% |
| Dividend StreakConsecutive years of raises | — | 11 |
| Dividend / ShareAnnual DPS | — | $3.81 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +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 |
|---|---|---|---|
| Futu Holdings Limit… (FUTU) | 100 | 1,325.57 | +1225.6% |
| Morgan Stanley (MS) | 100 | 398.24 | +298.2% |
Morgan Stanley (MS) returned +131% over 5 years vs Futu Holdings Limit… (FUTU)'s -9%. A $10,000 investment in MS 5 years ago would be worth $23,095 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Futu Holdings Limit… (FUTU) | $87M | $13.6B | +15518.1% |
| Morgan Stanley (MS) | $36.0B | $103.1B | +186.5% |
Morgan Stanley's revenue grew from $36.0B (2015) to $103.1B (2024) — a 12.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Futu Holdings Limit… (FUTU) | -113.2% | 40.1% | +135.4% |
| Morgan Stanley (MS) | 17.0% | 13.0% | -23.7% |
Morgan Stanley's net margin went from 17% (2015) to 13% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Futu Holdings Limit… (FUTU) | 7.2 | 2.1 | -70.8% |
| Morgan Stanley (MS) | 17 | 15.8 | -7.1% |
Futu Holdings Limited has traded in a 2x–7x P/E range over 6 years; current trailing P/E is ~30x. 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 | 2015 | 2024 | Change |
|---|---|---|---|
| Futu Holdings Limit… (FUTU) | -0.89 | 38.86 | +4466.3% |
| Morgan Stanley (MS) | 2.91 | 7.95 | +173.2% |
Morgan Stanley's EPS grew from $2.91 (2015) to $7.95 (2024) — a 12% CAGR.
Chart 6Free Cash Flow — 5 Years
Futu Holdings Limited generated $31B FCF in 2024 (+419% vs 2021). Morgan Stanley generated $-2B FCF in 2024 (-107% vs 2021).
FUTU vs MS: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is FUTU 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 Futu Holdings Limited (FUTU) a "Buy" — based on 12 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 — FUTU or MS?
On trailing P/E, Morgan Stanley (MS) is the cheapest at 20.9x versus Futu Holdings Limited at 30.0x. On forward P/E, Futu Holdings Limited is actually cheaper at 1.8x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Futu Holdings Limited wins at 0.02x 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 — FUTU or MS?
Over the past 5 years, Morgan Stanley (MS) delivered a total return of +131.0%, compared to -9.0% for Futu Holdings Limited (FUTU). 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: FUTU returned +884.3% versus MS's +662.8%. 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 — FUTU or MS?
By beta (market sensitivity over 5 years), Morgan Stanley (MS) is the lower-risk stock at 1.35β versus Futu Holdings Limited's 1.57β — meaning FUTU is approximately 16% more volatile than MS relative to the S&P 500. On balance sheet safety, Futu Holdings Limited (FUTU) carries a lower debt/equity ratio of 31% versus 3% for Morgan Stanley — giving it more financial flexibility in a downturn.
05Which has better profit margins — FUTU or MS?
Futu Holdings Limited (FUTU) is the more profitable company, earning 40.1% net margin versus 13.0% for Morgan Stanley — meaning it keeps 40.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FUTU leads at 48.7% versus 17.1% for MS. At the gross margin level — before operating expenses — FUTU leads at 82.0%, 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 FUTU 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, Futu Holdings Limited (FUTU) is the more undervalued stock at a PEG of 0.02x versus Morgan Stanley's 1.66x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Futu Holdings Limited (FUTU) trades at 1.8x forward P/E versus 14.8x for Morgan Stanley — 13.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FUTU: 51.0% to $224.70.
07Which pays a better dividend — FUTU or MS?
In this comparison, MS (2.3% yield) pays a dividend. FUTU does not pay a meaningful dividend and should not be held primarily for income.
08Is FUTU or MS better for a retirement portfolio?
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 (2.3% yield, +662.8% 10Y return). Futu Holdings Limited (FUTU) carries a higher beta of 1.57 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (MS: +662.8%, FUTU: +884.3%), 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 FUTU 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 FUTU 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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