Morgan Stanley (MS) and Futu (FHL) Head to Head Analysis

Morgan Stanley (NYSE:MS) and Futu (NASDAQ:FHL) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

Institutional & Insider Ownership

86.1% of Morgan Stanley shares are held by institutional investors. 0.2% of Morgan Stanley shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Morgan Stanley and Futu’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Morgan Stanley $50.19 billion 1.59 $8.75 billion $4.61 10.26
Futu N/A N/A N/A N/A N/A

Morgan Stanley has higher revenue and earnings than Futu.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Morgan Stanley and Futu, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Morgan Stanley 1 7 10 0 2.50
Futu 0 2 0 0 2.00

Morgan Stanley currently has a consensus target price of $56.56, indicating a potential upside of 19.61%. Futu has a consensus target price of $17.62, indicating a potential upside of 28.05%. Given Futu’s higher probable upside, analysts clearly believe Futu is more favorable than Morgan Stanley.

Profitability

This table compares Morgan Stanley and Futu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Morgan Stanley 16.75% 11.50% 0.96%
Futu N/A N/A N/A

Dividends

Morgan Stanley pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. Futu does not pay a dividend. Morgan Stanley pays out 26.0% of its earnings in the form of a dividend. Morgan Stanley has raised its dividend for 5 consecutive years.

Summary

Morgan Stanley beats Futu on 10 of the 12 factors compared between the two stocks.

About Morgan Stanley

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. The company operates through Institutional Securities, Wealth Management, and Investment Management segments. The Institutional Securities segment offers capital raising and financial advisory services, including services related to the underwriting of debt, equity, and other securities, as well as advice on mergers and acquisitions, restructurings, real estate, and project finance. This segment also provides sales and trading services, such as sales, financing, prime brokerage, and market-making services in equity and fixed income products consisting of foreign exchange and commodities; corporate loans, commercial mortgage lending, and asset-backed lending; financing for sales and trading customers; and investment and research services. The Wealth Management segment offers various financial services and solutions covering brokerage and investment advisory services, financial and wealth planning services, annuity and insurance products, securities-based lending, residential real estate loans and other lending products, and banking and retirement plan services to individual investors and small to medium-sized businesses and institutions. The Investment Management segment provides various investment strategies and products comprising equity, fixed income, liquidity, and alternative/other products to defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, and third-party fund sponsors and corporations through a network of institutional and intermediary channels. Morgan Stanley was founded in 1924 and is headquartered in New York, New York.

About Futu

Futu Holdings Limited operates digitized brokerage platform in Hong Kong, China, Japan, the United States, and internationally. Its platform offers investing services, including trade execution and margin financing which allows to trade securities, such as stocks, warrants, options and exchange-traded funds, or ETFs, across different markets; market data and information; and securities lending services. The company was founded in 2011 and is headquartered in Sheung Wan, Hong Kong.

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