GS vs MS

For growth investors, The Goldman Sachs Group, Inc.

(GS) is the stronger pick with 17. 0% revenue growth year-over-year, versus 16. 8% for Morgan Stanley (MS). The Goldman Sachs Group, Inc. (GS) offers the better valuation at 22. 7x trailing P/E (15. 5x forward), making it the more compelling value choice. Analysts rate Morgan Stanley (MS) a "Buy" — based on 52 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, The Goldman Sachs Group, Inc.

(GS) is the cheapest at 22. 7x versus Morgan Stanley at 23. 8x. On forward P/E, The Goldman Sachs Group, Inc. is actually cheaper at 15. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Goldman Sachs Group, Inc. wins at 1. 11x versus Morgan Stanley's 1. 79x — a reasonable growth-adjusted valuation.

Over the past 5 years, The Goldman Sachs Group, Inc.

(GS) delivered a total return of +172. 3%, compared to +144. 0% for Morgan Stanley (MS). Over 10 years, the gap is even starker: MS returned +726. 4% versus GS's +521. 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), Morgan Stanley (MS) is the lower-risk stock at 1.

37β versus The Goldman Sachs Group, Inc. 's 1. 47β — meaning GS is approximately 7% more volatile than MS relative to the S&P 500. On balance sheet safety, Morgan Stanley (MS) carries a lower debt/equity ratio of 3% versus 5% for The Goldman Sachs Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Goldman Sachs Group, Inc.

(GS) is pulling ahead at 17. 0% versus 16. 8% for Morgan Stanley (MS). On earnings-per-share growth, the picture is similar: The Goldman Sachs Group, Inc. grew EPS 77. 3% year-over-year, compared to 53. 5% for Morgan Stanley. 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 11. 3% for The Goldman Sachs Group, Inc. — 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 14. 5% for GS. At the gross margin level — before operating expenses — MS leads at 55. 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, The Goldman Sachs Group, Inc. (GS) is the more undervalued stock at a PEG of 1. 11x versus Morgan Stanley's 1. 79x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, The Goldman Sachs Group, Inc. (GS) trades at 15. 5x forward P/E versus 15. 9x for Morgan Stanley — 0. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MS: 8. 7% to $205. 75.

All stocks in this comparison pay dividends.

Morgan Stanley (MS) offers the highest yield at 2. 0%, versus 1. 5% for The Goldman Sachs Group, Inc. (GS).

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, +726. 4% 10Y return). Both have compounded well over 10 years (MS: +726. 4%, GS: +521. 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.

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.