Comprehensive Stock Comparison
Compare Jefferies Financial Group Inc. (JEF) vs The Goldman Sachs Group, Inc. (GS) 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 | GS | 17.0% revenue growth vs JEF's 2.9% |
| Value | JEF | Lower P/E (10.4x vs 14.8x) |
| Quality / Margins | MS | 13.0% net margin vs JEF's 6.6% |
| Stability / Safety | MS | Beta 1.35 vs JEF's 1.85 |
| Dividends | JEF | 3.8% yield, 8-year raise streak, vs GS's 1.6% |
| Momentum (1Y) | GS | +40.4% vs JEF's -30.5% |
| Efficiency (ROA) | MS | 1.2% ROA vs GS's 0.9%, ROIC 2.9% vs 1.9% |
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
Jefferies Financial Group is a global investment bank and financial services firm that provides advisory, capital markets, and asset management services. It generates revenue primarily through investment banking fees — including M&A advisory and underwriting — and trading commissions from its capital markets business, with asset management contributing additional fee-based income. The firm's competitive advantage lies in its focused mid-market expertise and strong client relationships in sectors like energy, healthcare, and technology, which drive repeat advisory mandates.
Goldman Sachs is a global investment bank and financial services firm that provides investment banking, securities, and investment management services to corporations, governments, and high-net-worth individuals. It generates revenue primarily through investment banking fees (20-25%), trading and market-making in its Global Markets segment (40-45%), and asset management fees from its wealth and investment management divisions (30-35%). The firm's key competitive advantage lies in its elite brand reputation, deep client relationships with the world's largest corporations and governments, and its sophisticated risk management capabilities honed over decades.
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 3 stocks. BestLagging
Financial Scorecard
MS leads in 2 of 6 categories (Financial Metrics, Profitability & Efficiency). JEF leads in 1 (Valuation Metrics). 2 tied.
Financial Metrics (TTM)
GS is the larger business by revenue, generating $126.9B annually — 11.7x JEF's $10.8B. MS is the more profitable business, keeping 13.0% of every revenue dollar as net income compared to JEF's 6.6%.
| Metric | JEFJefferies Financi… | GSThe Goldman Sachs… | MSMorgan Stanley |
|---|---|---|---|
| RevenueTrailing 12 months | $10.8B | $126.9B | $103.1B |
| EBITDAEarnings before interest/tax | $24M | $23.4B | $26.3B |
| Net IncomeAfter-tax profit | $819M | $16.7B | $16.2B |
| Free Cash FlowCash after capex | $911M | $15.8B | -$6.7B |
| Gross MarginGross profit ÷ Revenue | +59.7% | +41.1% | +55.6% |
| Operating MarginEBIT ÷ Revenue | +6.3% | +14.5% | +17.1% |
| Net MarginNet income ÷ Revenue | +6.6% | +11.3% | +13.0% |
| FCF MarginFCF ÷ Revenue | +3.1% | -12.1% | -2.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +34.7% | +45.8% | +48.9% |
Valuation Metrics
At 15.7x trailing earnings, JEF trades at a 26% valuation discount to GS's 21.2x P/E. Adjusting for growth (PEG ratio), GS offers better value at 1.51x vs MS's 2.35x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | JEFJefferies Financi… | GSThe Goldman Sachs… | MSMorgan Stanley |
|---|---|---|---|
| Market CapShares × price | $9.2B | $267.0B | $264.9B |
| Enterprise ValueMkt cap + debt − cash | -$3.1B | $701.9B | $549.6B |
| Trailing P/EPrice ÷ TTM EPS | 15.69x | 21.20x | 20.94x |
| Forward P/EPrice ÷ next-FY EPS est. | 10.38x | 14.73x | 14.79x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.51x | 2.35x |
| EV / EBITDAEnterprise value multiple | -3.55x | 33.76x | 24.15x |
| Price / SalesMarket cap ÷ Revenue | 0.85x | 2.10x | 2.57x |
| Price / BookPrice ÷ Book value/share | 0.93x | 2.35x | 2.54x |
| Price / FCFMarket cap ÷ FCF | 27.50x | — | — |
Profitability & Efficiency
MS delivers a 14.6% return on equity — every $100 of shareholder capital generates $15 in annual profit, vs $8 for JEF. JEF carries lower financial leverage with a 0.17x debt-to-equity ratio, signaling a more conservative balance sheet compared to GS's 5.06x. On the Piotroski fundamental quality scale (0–9), JEF scores 5/9 vs GS's 4/9, reflecting solid financial health.
| Metric | JEFJefferies Financi… | GSThe Goldman Sachs… | MSMorgan Stanley |
|---|---|---|---|
| ROE (TTM)Return on equity | +7.7% | +12.6% | +14.6% |
| ROA (TTM)Return on assets | +1.1% | +0.9% | +1.2% |
| ROICReturn on invested capital | +2.4% | +1.9% | +2.9% |
| ROCEReturn on capital employed | +1.1% | +3.6% | +3.8% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 | 5 |
| Debt / EquityFinancial leverage | 0.17x | 5.06x | 3.42x |
| Net DebtTotal debt minus cash | -$12.3B | $434.8B | $284.7B |
| Cash & Equiv.Liquid assets | $14.0B | $182.1B | $75.7B |
| Total DebtShort + long-term debt | $1.8B | $616.9B | $360.5B |
| Interest CoverageEBIT ÷ Interest expense | 0.05x | 0.31x | 0.44x |
Total Returns (with DRIP)
A $10,000 investment in GS five years ago would be worth $27,615 today (with dividends reinvested), compared to $17,690 for JEF. Over the past 12 months, GS leads with a +40.4% total return vs JEF's -30.5%. The 3-year compound annual growth rate (CAGR) favors GS at 36.6% vs JEF's 8.7% — a key indicator of consistent wealth creation.
| Metric | JEFJefferies Financi… | GSThe Goldman Sachs… | MSMorgan Stanley |
|---|---|---|---|
| YTD ReturnYear-to-date | -29.4% | -6.0% | -7.9% |
| 1-Year ReturnPast 12 months | -30.5% | +40.4% | +28.0% |
| 3-Year ReturnCumulative with dividends | +28.6% | +154.7% | +83.8% |
| 5-Year ReturnCumulative with dividends | +76.9% | +176.1% | +131.0% |
| 10-Year ReturnCumulative with dividends | +309.1% | +521.2% | +662.8% |
| CAGR (3Y)Annualised 3-year return | +8.7% | +36.6% | +22.5% |
Risk & Volatility
MS is the less volatile stock with a 1.35 beta — it tends to amplify market swings less than JEF's 1.85 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. GS currently trades 87.3% from its 52-week high vs JEF's 62.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | JEFJefferies Financi… | GSThe Goldman Sachs… | MSMorgan Stanley |
|---|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.85x | 1.36x | 1.35x |
| 52-Week HighHighest price in past year | $71.04 | $984.70 | $192.68 |
| 52-Week LowLowest price in past year | $39.28 | $439.38 | $94.33 |
| % of 52W HighCurrent price vs 52-week peak | +62.5% | +87.3% | +86.4% |
| RSI (14)Momentum oscillator 0–100 | 26.7 | 52.2 | 51.2 |
| Avg Volume (50D)Average daily shares traded | 1.8M | 2.0M | 5.8M |
Analyst Outlook
Analyst consensus: JEF as "Buy", GS as "Hold", MS as "Buy". Consensus price targets imply 71.2% upside for JEF (target: $76) vs 8.6% for GS (target: $934). For income investors, JEF offers the higher dividend yield at 3.78% vs GS's 1.57%.
| Metric | JEFJefferies Financi… | GSThe Goldman Sachs… | MSMorgan Stanley |
|---|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold | Buy |
| Price TargetConsensus 12-month target | $76.00 | $933.67 | $196.00 |
| # AnalystsCovering analysts | 8 | 54 | 50 |
| Dividend YieldAnnual dividend ÷ price | +3.8% | +1.6% | +2.3% |
| Dividend StreakConsecutive years of raises | 8 | 12 | 11 |
| Dividend / ShareAnnual DPS | $1.68 | $13.48 | $3.81 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.6% | +3.8% | +1.6% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Jefferies Financial… (JEF) | 100 | 306.91 | +206.9% |
| The Goldman Sachs G… (GS) | 100 | 451.77 | +351.8% |
| Morgan Stanley (MS) | 100 | 398.24 | +298.2% |
The Goldman Sachs G… (GS) returned +176% over 5 years vs Jefferies Financial… (JEF)'s +77%. A $10,000 investment in GS 5 years ago would be worth $27,615 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Jefferies Financial… (JEF) | $3.8B | $10.8B | +181.3% |
| The Goldman Sachs G… (GS) | $37.9B | $126.9B | +234.8% |
| Morgan Stanley (MS) | $36.0B | $103.1B | +186.3% |
Jefferies Financial Group Inc.'s revenue grew from $3.8B (2016) to $10.8B (2025) — a 12.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Jefferies Financial… (JEF) | 3.4% | 6.6% | +94.3% |
| The Goldman Sachs G… (GS) | 19.5% | 11.3% | -42.4% |
| Morgan Stanley (MS) | 16.6% | 13.0% | -21.8% |
Jefferies Financial Group Inc.'s net margin went from 3% (2016) to 7% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Jefferies Financial… (JEF) | 52.6 | 21.9 | -58.4% |
| The Goldman Sachs G… (GS) | 28.3 | 14.1 | -50.2% |
| Morgan Stanley (MS) | 17 | 15.8 | -7.1% |
Jefferies Financial Group Inc. has traded in a 6x–53x P/E range over 9 years; current trailing P/E is ~16x. The Goldman Sachs Group, Inc. has traded in a 6x–28x P/E range over 8 years; current trailing P/E is ~21x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Jefferies Financial… (JEF) | 0.34 | 2.83 | +732.4% |
| The Goldman Sachs G… (GS) | 17 | 40.54 | +138.5% |
| Morgan Stanley (MS) | 2.92 | 7.95 | +172.3% |
Jefferies Financial Group Inc.'s EPS grew from $0.34 (2016) to $2.83 (2025) — a 27% CAGR.
Chart 6Free Cash Flow — 5 Years
Jefferies Financial Group Inc. generated $333M FCF in 2025 (-76% vs 2021). The Goldman Sachs Group, Inc. generated $-15B FCF in 2024 (-1038% vs 2021).
JEF vs GS vs MS: Key Questions Answered
9 questions · data-driven answers · updated daily
01Is JEF or GS or MS a better buy right now?
Jefferies Financial Group Inc. (JEF) offers the better valuation at 15.7x trailing P/E (10.4x forward), making it the more compelling value choice. Analysts rate Jefferies Financial Group Inc. (JEF) a "Buy" — based on 8 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 — JEF or GS or MS?
On trailing P/E, Jefferies Financial Group Inc. (JEF) is the cheapest at 15.7x versus The Goldman Sachs Group, Inc. at 21.2x. On forward P/E, Jefferies Financial Group Inc. is actually cheaper at 10.4x. 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 1.05x versus Morgan Stanley's 1.66x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — JEF or GS or MS?
Over the past 5 years, The Goldman Sachs Group, Inc. (GS) delivered a total return of +176.1%, compared to +76.9% for Jefferies Financial Group Inc. (JEF). A $10,000 investment in GS five years ago would be worth approximately $28K today (assuming dividends reinvested). Over 10 years, the gap is even starker: MS returned +662.8% versus JEF's +309.1%. 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 — JEF or GS or MS?
By beta (market sensitivity over 5 years), Morgan Stanley (MS) is the lower-risk stock at 1.35β versus Jefferies Financial Group Inc.'s 1.85β — meaning JEF is approximately 37% more volatile than MS relative to the S&P 500. On balance sheet safety, Jefferies Financial Group Inc. (JEF) carries a lower debt/equity ratio of 17% versus 5% for The Goldman Sachs Group, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — JEF or GS or MS?
Morgan Stanley (MS) is the more profitable company, earning 13.0% net margin versus 6.6% for Jefferies Financial 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 6.3% for JEF. At the gross margin level — before operating expenses — JEF leads at 59.7%, 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 JEF or GS 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, The Goldman Sachs Group, Inc. (GS) is the more undervalued stock at a PEG of 1.05x versus Morgan Stanley's 1.66x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Jefferies Financial Group Inc. (JEF) trades at 10.4x forward P/E versus 14.8x for Morgan Stanley — 4.4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for JEF: 71.2% to $76.00.
07Which pays a better dividend — JEF or GS or MS?
All stocks in this comparison pay dividends. Jefferies Financial Group Inc. (JEF) offers the highest yield at 3.8%, versus 1.6% for The Goldman Sachs Group, Inc. (GS).
08Is JEF or GS 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). Jefferies Financial Group Inc. (JEF) carries a higher beta of 1.85 — 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%, JEF: +309.1%), 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 JEF and GS 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. In terms of investment character: JEF is a small-cap deep-value stock; GS is a large-cap quality compounder stock; MS is a large-cap quality compounder 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.
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