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Alexandria Real Estate Equities, Inc. (ARE) vs Morgan Stanley (MS): Which Is the Better Buy in 2026?

As of 2026-06-19, ARE is fairly valued at $51, with a DCF intrinsic value of $52 and a margin of safety of 2%. MS is undervalued at $223, with an intrinsic value of $298 and a margin of safety of 25%. Of the two, MS has the wider margin of safety.

ARE
Alexandria Real Estate Equities, Inc.
$51.03
VS
MS
Morgan Stanley
$223.17

Rewards

ARE
  • ★Gross margin of 68.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Insiders have bought $1.1M worth of stock in the past 3 months — significant skin in the game.
  • ★FCF yield of 15.8% is historically attractive — the business generates significant cash relative to its price.
MS
  • ★Gross margin of 87.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Morgan Stanley scores 80/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Each dollar of retained earnings has created $3.56 of earning power — management is an exceptional capital allocator.

Risks

ARE
  • ⚠PEG ratio of 3.24 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Net debt/EBITDA of 6.7x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
  • ⚠Altman Z-Score of 0.43 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
MS
  • ⚠Trailing P/E of 20.2x is 26% above the historical average of 16.1x — the stock trades at a premium to its own history.
  • ⚠PEG ratio of 2.66 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Altman Z-Score of 0.29 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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ARE
MS
Valuation
$1.41B
Free Cash Flow
N/A
15.84%
FCF Yield
N/A
N/A
Trailing P/E
20.21
-57.99
Forward P/E
17.56
Quality & Moat
1.14%
ROIC
3.38%
-4.14%
ROE
16.39%
68.59%
Gross Margin
87.39%
3.24
PEG Ratio
2.66
Balance Sheet Safety
0.64
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
6.70
Net Debt / EBITDA
N/A
5.56%
Dividend Yield
1.81%
ARE: 2Ties: 1MS: 5
AREMS

Historical Fundamentals

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ARE

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

MS

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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ARE
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-3.66B
Δ Market Cap
$-16.53B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
MS
$6.65
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$20.84B
Δ Market Cap
+$138.59B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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ARE
2.3% Margin of Safety
Price is 2.3% below estimated fair value
Current Price: $51.03
Fair Value: $52.25
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
MS
25.0% Margin of Safety
Price is 25.0% below estimated fair value
Current Price: $223.17
Fair Value: $297.53
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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ARE

What growth rate is the market pricing in at $51?

+3.9%
Market-Implied FCF Growth Rate

Market roughly matching historical growth — reasonable.

MS

Requires positive FCF to compute implied growth rate.

Economic Moat Score

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ARE
50/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with margin stability as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
MS
80/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

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ARE
-2.80
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
MS
-2.09
Possible Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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ARE
Insiders 1.4%Institutions 97.0%Retail & Other 1.6%
No. of Institutional Holders857
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
MS
Insiders 24.3%Institutions 62.8%Retail & Other 12.9%
No. of Institutional Holders3,208
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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ARE
3
Buys (3M)
5
Buys (12M)
Total value (12M): $2.57M
MARCUS JOEL S
Officer and Director
$347,558
@ $46.34 · 2026-05-06
MARCUS JOEL S
Officer and Director
$320,416
@ $42.72 · 2026-05-05
MARCUS JOEL S
Officer and Director
$410,200
@ $41.02 · 2026-05-04
MARCUS JOEL S
Officer and Director
$1.35M
@ $53.92 · 2026-02-12
MCGRATH SHEILA K.
Director
$141,360
@ $45.60 · 2025-12-10
Open market purchases · includes direct & indirect ownership · excludes option exercises
MS
0
Buys (3M)
1
Buys (12M)
Total value (12M): $5,630
PETERSON DOUGLAS L
Director
$5,630
@ $156.39 · 2025-10-17
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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ARE
2
Sells (3M)
4
Sells (12M)
Total value (12M): $546,506
BINDA MARC E.
Chief Financial Officer
$108,000
@ $54.00 · 2026-06-09
KUHN HALLIE E.
Officer
$25,835
@ $48.20 · 2026-04-17
GOSSETT BRET E.
Officer
$251,792
@ $53.55 · 2026-02-27
ALSBROOK MADELEINE THORP
Officer
$160,879
@ $46.15 · 2025-12-16
MOGLIA PETER M
Chief Executive Officer
$1.02M
@ $102.26 · 2024-12-16
ALSBROOK MADELEINE THORP
Officer
$446,202
@ $102.34 · 2024-12-16
RYAN DANIEL J
Officer
$1.03M
@ $103.31 · 2024-12-11
GAVINET ANDRES
Officer
$2.09M
@ $104.29 · 2024-12-11
KASS HUNTER
President
$530,650
@ $106.13 · 2024-12-09
CAIN JAMES P
Director
$42,456
@ $124.87 · 2024-09-16
CIRUZZI VINCENT R. JR
Officer
$855,756
@ $123.29 · 2024-09-13
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
MS
4
Sells (3M)
16
Sells (12M)
Total value (12M): $70.42M
GROSSMAN ERIC F
Officer
$2.12M
@ $190.75 · 2026-04-20
SIMKOWITZ DANIEL A
President
$2.78M
@ $189.24 · 2026-04-17
CRAWLEY MANDELL L.
Officer
$3.04M
@ $188.22 · 2026-04-16
SAPERSTEIN ANDREW MICHAEL
President
$9.74M
@ $188.59 · 2026-04-16
SIMKOWITZ DANIEL A
President
$6.02M
@ $182.61 · 2026-01-30
CRAWLEY MANDELL L.
Officer
$1.44M
@ $183.45 · 2026-01-20
YESHAYA SHARON
Chief Financial Officer
$2.94M
@ $185.77 · 2026-01-20
SMITH CHARLES AUBREY III
Officer
$1.55M
@ $182.08 · 2026-01-20
SAPERSTEIN ANDREW MICHAEL
President
$5.57M
@ $183.62 · 2026-01-20
GROSSMAN ERIC F
Officer
$3.97M
@ $184.00 · 2026-01-20
PIZZI MICHAEL A
Officer
$3.69M
@ $184.55 · 2026-01-20
PICK EDWARD N.
Chief Executive Officer
$16.43M
@ $164.34 · 2025-10-31
SMITH CHARLES AUBREY III
Officer
$2.81M
@ $140.30 · 2025-07-17
SIMKOWITZ DANIEL A
President
$4.09M
@ $141.13 · 2025-07-17
GROSSMAN ERIC F
Officer
$1.69M
@ $141.12 · 2025-07-17
PIZZI MICHAEL A
Officer
$2.53M
@ $140.62 · 2025-07-17
SIMKOWITZ DANIEL A
President
$3.70M
@ $127.37 · 2025-05-12
HERZ ROBERT H
Director
$95,459
@ $119.32 · 2025-05-02
SAPERSTEIN ANDREW MICHAEL
President
$4.80M
@ $120.00 · 2025-05-02
GROSSMAN ERIC F
Officer
$1.12M
@ $111.65 · 2025-04-15
CRAWLEY MANDELL L.
Officer
$1.15M
@ $138.06 · 2025-01-22
SAPERSTEIN ANDREW MICHAEL
President
$4.20M
@ $136.43 · 2025-01-21
SIMKOWITZ DANIEL A
President
$5.00M
@ $136.61 · 2025-01-21
AKRAM RAJA
Chief Financial Officer
$2.38M
@ $136.01 · 2025-01-21
GROSSMAN ERIC F
Officer
$1.78M
@ $136.20 · 2025-01-21
PIZZI MICHAEL A
Officer
$2.52M
@ $136.92 · 2025-01-21
CRAWLEY MANDELL L.
Officer
$368,375
@ $105.25 · 2024-07-26
AKRAM RAJA
Officer
$797,764
@ $106.37 · 2024-07-18
HERZ ROBERT H
Director
$106,621
@ $106.62 · 2024-07-17
SIMKOWITZ DANIEL A
President
$4.26M
@ $106.54 · 2024-07-17
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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ARE
FearGreed
😨Fear(36/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
MS
FearGreed
😏Greed(70/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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ARE
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Fear (36)
MS
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Greed (70)
View ARE Full AnalysisView MS Full Analysis

Frequently Asked Questions: ARE vs MS

Is Alexandria Real Estate Equities, Inc. or Morgan Stanley more undervalued in 2026?▼

Based on our discounted cash flow model, MS trades at a 25.0% margin of safety (intrinsic value $298 vs. price $223), compared to ARE's 2.3% margin of safety (intrinsic $52 vs. $51).

Which stock has a wider economic moat, Alexandria Real Estate Equities, Inc. or Morgan Stanley?▼

MS scores 80/100 (Wide moat), while ARE scores 50/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Morgan Stanley in financial distress?▼

MS's Altman Z-Score of 0.3 places it in the Distress zone, signaling elevated bankruptcy risk. ARE scores 0.4 (Distress zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, Alexandria Real Estate Equities, Inc. or Morgan Stanley?▼

MS earns 3.4% ROIC versus ARE's 1.1%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Alexandria Real Estate Equities, Inc.'s or Morgan Stanley's?▼

MS's dividend earns a safety score of 79/100 (Safe), compared to ARE's 59/100 (Borderline). MS has raised its dividend for 3 consecutive years.

ARE vs MS: Which Is the Better Buy in 2026? | SafetyMargin.io