` Comparison: MS vs GS - Alpha Spread

MS
vs
GS

Over the past 12 months, MS has underperformed GS, delivering a return of +35% compared to the GS's +83% growth.

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MS
GS
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Valuation Comparison

MS Intrinsic Value
6 613.81 MXN
Undervaluation 55%
Intrinsic Value
Price Mex$2 980
GS Intrinsic Value
1 631.72 USD
Undervaluation 45%
Intrinsic Value
Price $903.72
Company Last Price Intrinsic Value DCF Value Multiples-Based Value Wall St Target
Morgan Stanley
BMV:MS
2 980 MXN
Goldman Sachs Group Inc
NYSE:GS
903.72 USD
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Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
MS, GS

Revenue
www.alphaspread.com
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Morgan Stanley
Revenue
Goldman Sachs Group Inc
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
MS, GS

Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Morgan Stanley
BMV:MS
Goldman Sachs Group Inc
NYSE:GS
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What is Free Cash Flow?

Gross Margin

MS
55.1%
GS
40.2%

Operating Margin

MS
18.3%
GS
17.5%

Net Margin

MS
13.6%
GS
13%

FCF Margin

MS
-17.4%
GS
-37.7%

ROE

MS
15%
GS
13.2%

ROA

MS
1.2%
GS
0.9%

ROIC

MS
1.7%
GS
1.3%

ROCE

MS
3.6%
GS
3.4%

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
MS, GS

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Performance Gap
MS, GS

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MS
GS
Difference
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Performance By Year
MS, GS

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Compare MS to other stocks
JPM
JPMorgan Chase & Co
More expensive
vs MS
BAC
Bank of America Corp
More expensive
vs MS
WFC
Wells Fargo & Co
More expensive
vs MS
C
Citigroup Inc
More expensive
vs MS
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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett