Data as of:
LIVE
SCHW
The Charles Schwab Corporation · Financial Services / Retail Brokerage & Banking
$105.25
-5.08% this month
VERSUS
COMPARE
MS
Morgan Stanley · Financial Services / Investment Banking & Wealth Management
$202.58
-5.44% this month
Comparison scoreboard
SCHW LEADS 3/5AI Scorei
SCHW 53.2
MS ✓65.2
1Y Returni
SCHW +12.83%
MS ✓+27.22%
Fwd P/Ei
SCHW ✓14.11
MS 15.75
Target Up.i
SCHW ✓+13.43%
MS +10.17%
Op. Margini
SCHW ✓52.28%
MS 41.57%
Metrics last refreshed: 9/19/2026
Quick take
SCHW vs MS Stock Comparison: AI Score, Valuation, Performance and Upside
SCHW and MS are financial services companies serving different market segments with different revenue structures. Schwab is the dominant retail self-directed investor platform — revenue from NII on client cash balances and asset management fees, highly sensitive to rate environment. Morgan Stanley is a diversified investment bank and wealth management firm — institutional services plus $5T+ in advisory AUM providing stability across cycles. Schwab is more interest rate sensitive; Morgan Stanley has more investment banking cycle exposure.
SCHW vs MS — Charles Schwab ($9T+ retail brokerage platform with NII-dominant revenue model, TD Ameritrade integration, and secular retail investor growth tailwind) versus Morgan Stanley (top investment bank with $5T+ wealth management AUM providing stable fee income alongside institutional securities trading and M&A advisory).
Live analysis · updated 9/19/2026
SCHW holds the edge across 3 of 5 key metrics in this comparison. MS has delivered stronger 1-year price return (+27.22% vs +12.83%), though SCHW has the better forward P/E setup (14.11x vs 15.75x for MS). On fundamentals, MS is growing revenue faster (28.00%), while SCHW maintains the higher operating margin (52.28%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for SCHW (+13.43%) than for MS (+10.17%).
Want a full valuation workup? 46-section report — AI Score, Monte Carlo forecast, bull/bear case, DCF, and more.
Normalized 1Y performance
SCHW
MS
Recent returns
SCHW
MS
Analyst price targets & sentiment
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
SCHW
Price target range
analyst mean$124.95
current price$105.25
+13.4% upside to analyst mean
MS · 19 analysts
STRONG BUYHOLDSTRONG SELL
Hold (2.6/5.0)
11 Buy / 13 Hold / 1 Sell
Price target range
analyst low$101.00
analyst mean$236.62
current price$202.58
+10.2% upside to analyst mean
Who should consider this stock?
SCHW may suit investors who:
- believe client cash sorting headwinds are abating and Schwab's NII will recover as the rate environment normalizes and clients reduce money market allocations back to Schwab sweeps
- want exposure to retail investing growth — Schwab's $9T+ client asset base benefits from the long-term structural growth in retail investor participation and retirement savings
- value Schwab's dominant self-directed retail platform with significant switching costs — once investors build their brokerage at Schwab, moving accounts is complex and infrequent
- are comfortable with rate sensitivity and the TD Ameritrade integration execution risk as near-term headwinds abate and long-term scale advantages compound
MS may suit investors who:
- want diversified financial services exposure — Morgan Stanley's combination of wealth management stability and investment banking cycle upside provides different risk characteristics than pure brokerages or pure investment banks
- value Morgan Stanley's wealth management transformation — $5T+ in advisory AUM provides recurring fee income that smooths the volatility of investment banking cycles
- are positive on M&A recovery in 2024-2025 as rate cuts and improving deal conditions restore investment banking revenue after 2022-2023's drought
- prefer Morgan Stanley's institutional investor relationships and global reach vs Schwab's primarily US retail investor focus
Performance & AI score
| Metric | SCHW | MS |
|---|---|---|
| AI scorei | 53.2 | 65.2 |
| AI ranki | #350 | #79 |
| Latest closei | $105.25 | $202.58 |
| 1M returni | -5.08% | -5.44% |
| 6M returni | +11.19% | +25.46% |
| 1Y returni | +12.83% | +27.22% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | SCHW | MS |
|---|---|---|
| 1Y ago | $11.16K (+11.6%) started 2025-09-19 | $12.67K (+26.7%) started 2025-09-19 |
| 5Y ago | $16.97K (+69.7%) started 2021-09-20 | $26.82K (+168.2%) started 2021-09-20 |
| 10Y ago | $42.95K (+329.5%) started 2016-09-19 | $109.51K (+995.1%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | SCHW | MS |
|---|---|---|
| Market capi | $190.5B | $337.31B |
| Trailing P/Ei | 20.07 | 17.36 |
| Forward P/Ei | 14.11 | 15.75 |
| Price/Salesi | N/A | 3.31 |
| EV/Revenuei | 6.77 | 2.78 |
| Analyst targeti | $124.95 | $236.62 |
| Target upsidei | +13.43% | +10.17% |
Growth, profitability & risk
| Metric | SCHW | MS |
|---|---|---|
| Revenue growthi | 20.90% | 28.00% |
| Earnings growthi | 42.60% | 62.40% |
| EPS growthi | +42.60% | +62.40% |
| FCF margini | N/A | N/A |
| Operating margini | 52.28% | 41.57% |
| Profit margini | 38.79% | 25.90% |
| ROIC proxyi | 20.27% | 17.97% |
| Return on equityi | 20.27% | 17.97% |
| Dividend yieldi | 1.16% | 2.14% |
| Payout ratioi | 21.49% | 32.31% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 0.75 | 1.21 |
| Debt/equityi | 151.11 | 517.28 |
| Current ratioi | 0.66 | 2.00 |
| Quick ratioi | 0.66 | 1.60 |
Correlation
Over the past year, SCHW and MS have moved moderately in the same direction (correlation of 0.46), based on daily returns.
1Y
0.46
-1.0+1.0
5Y
0.58
-1.0+1.0
10Y
0.68
-1.0+1.0
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
SCHW max drawdowni20.39%
MS max drawdowni19.28%
SCHW max wkly dropi13.18%
MS max wkly dropi8.42%
5Y risk snapshot
SCHW max drawdowni49.70%
MS max drawdowni32.38%
SCHW max wkly dropi32.23%
MS max wkly dropi13.51%
10Y risk snapshot
SCHW max drawdowni51.08%
MS max drawdowni51.33%
SCHW max wkly dropi32.23%
MS max wkly dropi26.49%
Performance metrics by period
| Period | Metric | SCHW | MS |
|---|---|---|---|
| 1Y | Growthi | +11.58% | +26.68% |
| CAGRi | +11.61% | +26.77% | |
| Volatilityi | 24.68% | 28.24% | |
| Sharpe ratioi | 0.39 | 0.83 | |
| Sortino ratioi | 0.52 | 1.19 | |
| Max drawdowni | 20.39% | 19.28% | |
| Current drawdowni | 7.39% | 11.36% | |
| Avg drawdowni | 7.06% | 4.67% | |
| Ulcer Indexi | 9.22% | 6.65% | |
| Max daily dropi | 7.63% | 6.19% | |
| Max wkly dropi | 13.18% | 8.42% | |
| 5Y | Growthi | +61.04% | +133.88% |
| CAGRi | +10.01% | +18.54% | |
| Volatilityi | 31.99% | 28.91% | |
| Sharpe ratioi | 0.32 | 0.58 | |
| Sortino ratioi | 0.45 | 0.84 | |
| Max drawdowni | 49.70% | 32.38% | |
| Current drawdowni | 7.39% | 11.36% | |
| Avg drawdowni | 18.54% | 10.62% | |
| Ulcer Indexi | 22.88% | 13.58% | |
| Max daily dropi | 12.77% | 9.51% | |
| Max wkly dropi | 32.23% | 13.51% | |
| 10Y | Growthi | +281.33% | +724.80% |
| CAGRi | +14.32% | +23.50% | |
| Volatilityi | 33.08% | 31.41% | |
| Sharpe ratioi | 0.44 | 0.69 | |
| Sortino ratioi | 0.63 | 1.02 | |
| Max drawdowni | 51.08% | 51.33% | |
| Current drawdowni | 7.39% | 11.36% | |
| Avg drawdowni | 17.05% | 11.01% | |
| Ulcer Indexi | 21.81% | 14.59% | |
| Max daily dropi | 12.77% | 15.60% | |
| Max wkly dropi | 32.23% | 26.49% |
Business comparison
| Category | SCHW | MS |
|---|---|---|
| Company | The Charles Schwab Corporation | Morgan Stanley |
| Sector | Financial Services | Financial Services |
| Industry | Capital Markets | Capital Markets |
| Core business | Charles Schwab is the largest US retail brokerage by client assets ($9T+), offering self-directed investing, robo-advisory (Schwab Intelligent Portfolios), financial planning, banking (checking, savings, mortgages), and third-party investment advisory access. Schwab's acquisition of TD Ameritrade (2020) dramatically expanded scale. Schwab's revenue model is unique: zero-commission trades make trading revenue minimal — revenue comes from net interest income (earning spread on client cash balances), asset management fees (mutual funds, ETFs, advisory accounts), and service fees. Schwab's significant exposure to client cash sweep revenue makes it highly sensitive to Fed funds rates. | Morgan Stanley is a leading global investment bank and wealth management firm. Core businesses: Institutional Securities (investment banking, sales and trading, M&A advisory — Morgan Stanley's traditional core), Wealth Management (retail and high-net-worth financial advisory services with $5T+ in client assets, significantly expanded through E*Trade acquisition in 2020 and Eaton Vance acquisition in 2021), and Investment Management (institutional asset management). Morgan Stanley's strategic transformation under CEO James Gorman has successfully shifted toward the more stable fee-based wealth management business — reducing dependence on volatile trading revenue. |
| Investor focus | Investors focus on Schwab's net interest income (NII) sensitivity to Federal Reserve rate changes, client cash sorting (clients moving cash to higher-yielding alternatives reduces Schwab's NII), TD Ameritrade integration cost savings, and long-term retail investor AUM growth. | Investors focus on Morgan Stanley's wealth management fee revenue growth, investment banking activity (M&A, IPO, equity and debt issuance cycles), trading revenue from institutional securities, and the structural shift toward higher-quality fee earnings from $5T+ in wealth management client assets. |
SCHW strengths
- $9T+ in client assets provides enormous economic moat: Schwab's scale in retail brokerage creates switching cost advantages and enormous NII generation potential as the largest custodian of retail investor assets
- Retail investing secular tailwind: growing retail investor participation and retirement savings industry creates structural AUM growth regardless of market performance
- Cost structure advantages from TD Ameritrade integration: merger synergies and operational scale create cost advantages vs smaller retail brokerages
MS strengths
- $5T+ wealth management client assets: Morgan Stanley's E*Trade and Eaton Vance acquisitions created the largest wireframe wealth management platform — recurring fee revenue from $5T+ AUM provides earnings stability absent from investment banking cycles
- Investment banking brand and deal flow access: Morgan Stanley is a top 3 global investment bank for M&A advisory and equity underwriting — premier client relationships and deal origination capabilities
- Balanced institutional and retail revenue: Morgan Stanley's combination of investment banking, trading, and wealth management diversifies across financial cycles vs pure-play brokerages or pure investment banks
Risks to watch — SCHW
- Rate sensitivity and client cash sorting: when interest rates are high, clients sweep cash from Schwab's low-yielding accounts to money market funds — reducing Schwab's NII significantly (core earnings headwind experienced 2022-2024)
- TD Ameritrade integration completion: integrating TD's technology platform and client accounts is complex and ongoing — integration disruptions can affect client retention
- Zero commission competitive landscape: zero-commission trading makes Schwab dependent on non-trade revenue — business model change from trading fees requires successful asset management and NII execution
Risks to watch — MS
- Investment banking cycle dependency: M&A advisory and underwriting fees are highly cyclical — deal activity slows dramatically in rising rate environments (2022-2023 saw significant IB revenue declines)
- Trading revenue volatility: institutional securities trading revenue can vary 20-30% year-over-year based on market volatility and positioning — creates earnings uncertainty despite wealth management stability
- Competition from Merrill Lynch, Goldman Sachs, UBS in wealth: high-net-worth wealth management is competitive — client retention and advisor quality are ongoing competitive concerns
Frequently asked questions
Free public comparison
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.
In-Depth Reports
Full valuation workup with AI Score, Monte Carlo forecast, and bull/bear case — free preview, premium data from $3.99.
Related comparisons
TROW vs SCHW
Asset Manager vs Brokerage and Banking Platform
BK vs SCHW
Custody Bank vs Retail Brokerage Platform
ALLY vs SCHW
Digital Bank vs Brokerage and Banking Platform
BK vs MS
Custody Bank vs Wealth and Investment Bank
TROW vs MS
Pure Asset Manager vs Diversified Wealth and Banking Firm
CME vs SCHW
Derivatives Exchange vs Retail Brokerage Platform
More comparisons
Browse all 1,000 comparisons