NDAQ vs MS

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

8% revenue growth year-over-year, versus 11. 1% for Nasdaq, Inc. (NDAQ). Morgan Stanley (MS) offers the better valuation at 24. 3x trailing P/E (16. 3x forward), making it the more compelling value choice. Analysts rate Nasdaq, Inc. (NDAQ) a "Buy" — based on 36 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, Morgan Stanley (MS) is the cheapest at 24.

3x versus Nasdaq, Inc. at 28. 9x. On forward P/E, Morgan Stanley is actually cheaper at 16. 3x. 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 Nasdaq, Inc. 's 2. 12x — a reasonable growth-adjusted valuation.

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

2%, compared to +71. 7% for Nasdaq, Inc. (NDAQ). Over 10 years, the gap is even starker: MS returned +739. 4% versus NDAQ's +351. 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), Nasdaq, Inc.

(NDAQ) is the lower-risk stock at 0. 78β versus Morgan Stanley's 1. 37β — meaning MS is approximately 75% more volatile than NDAQ relative to the S&P 500. On balance sheet safety, Nasdaq, Inc. (NDAQ) carries a lower debt/equity ratio of 81% versus 3% for Morgan Stanley — giving it more financial flexibility in a downturn.

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

8% versus 11. 1% for Nasdaq, Inc. (NDAQ). On earnings-per-share growth, the picture is similar: Nasdaq, Inc. grew EPS 60. 1% 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.

Nasdaq, Inc.

(NDAQ) is the more profitable company, earning 21. 8% net margin versus 13. 0% for Morgan Stanley — meaning it keeps 21. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NDAQ leads at 28. 4% versus 17. 1% for MS. 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, Morgan Stanley (MS) is the more undervalued stock at a PEG of 1. 83x versus Nasdaq, Inc. 's 2. 12x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Morgan Stanley (MS) trades at 16. 3x forward P/E versus 22. 7x for Nasdaq, Inc. — 6. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NDAQ: 28. 5% to $114. 60.

All stocks in this comparison pay dividends.

Morgan Stanley (MS) offers the highest yield at 2. 0%, versus 1. 2% for Nasdaq, Inc. (NDAQ).

For long-horizon retirement investors, Nasdaq, Inc.

(NDAQ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 78), 1. 2% yield, +351. 9% 10Y return). Both have compounded well over 10 years (NDAQ: +351. 9%, MS: +739. 4%), 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: NDAQ 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.