MGRE vs MS

For growth investors, Affiliated Managers Group, Inc.

(MGRE) is the stronger pick with 19. 8% revenue growth year-over-year, versus 16. 8% for Morgan Stanley (MS). Affiliated Managers Group, Inc. (MGRE) offers the better valuation at 1. 1x trailing P/E (0. 7x 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, Affiliated Managers Group, Inc.

(MGRE) is the cheapest at 1. 1x versus Morgan Stanley at 24. 3x. On forward P/E, Affiliated Managers Group, Inc. is actually cheaper at 0. 7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Affiliated Managers Group, Inc. wins at 0. 02x versus Morgan Stanley's 1. 83x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Morgan Stanley (MS) delivered a total return of +142.

2%, compared to +7. 6% for Affiliated Managers Group, Inc. (MGRE). Over 10 years, the gap is even starker: MS returned +739. 4% versus MGRE's +7. 6%. 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), Affiliated Managers Group, Inc.

(MGRE) is the lower-risk stock at 0. 79β versus Morgan Stanley's 1. 37β — meaning MS is approximately 73% more volatile than MGRE relative to the S&P 500. On balance sheet safety, Affiliated Managers Group, Inc. (MGRE) carries a lower debt/equity ratio of 61% versus 3% for Morgan Stanley — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Affiliated Managers Group, Inc.

(MGRE) is pulling ahead at 19. 8% versus 16. 8% for Morgan Stanley (MS). On earnings-per-share growth, the picture is similar: Morgan Stanley grew EPS 53. 5% year-over-year, compared to 50. 3% for Affiliated Managers Group, Inc.. 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.

Affiliated Managers Group, Inc.

(MGRE) is the more profitable company, earning 29. 3% net margin versus 13. 0% for Morgan Stanley — meaning it keeps 29. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MGRE leads at 31. 8% versus 17. 1% for MS. At the gross margin level — before operating expenses — MGRE leads at 86. 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.

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, Affiliated Managers Group, Inc. (MGRE) is the more undervalued stock at a PEG of 0. 02x versus Morgan Stanley's 1. 83x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Affiliated Managers Group, Inc. (MGRE) trades at 0. 7x forward P/E versus 16. 3x for Morgan Stanley — 15. 6x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

Morgan Stanley (MS) offers the highest yield at 2. 0%, versus 0. 1% for Affiliated Managers Group, Inc. (MGRE).

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%, MGRE: +7. 6%), 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.

MS pays a dividend while MGRE 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.