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GE HealthCare Technologies Inc. (GEHC) vs Morgan Stanley (MS): Which Is the Better Buy in 2026?

As of 2026-06-19, GEHC is undervalued at $62, with a DCF intrinsic value of $100 and a margin of safety of 38%. MS is undervalued at $223, with an intrinsic value of $298 and a margin of safety of 25%. Of the two, GEHC has the wider margin of safety.

GEHC
GE HealthCare Technologies Inc.
$61.59
VS
MS
Morgan Stanley
$223.17

Rewards

GEHC
  • ★GE HealthCare Technologies Inc. scores 93/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
  • ★8 insider purchases totaling $6.4M with no sells in the past 3 months — insiders are putting their own money in.
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

GEHC
  • ⚠FCF yield of 5.3% suggests reasonable valuation assuming continued moderate growth.
  • ⚠Free cash flow has declined at a 5.8% CAGR over the past 4 years — a concerning trend.
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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GEHC
MS
Valuation
$1.48B
Free Cash Flow
N/A
5.30%
FCF Yield
N/A
14.77
Trailing P/E
20.21
11.48
Forward P/E
17.56
Quality & Moat
8.56%
ROIC
3.38%
19.46%
ROE
16.39%
39.14%
Gross Margin
87.39%
1.79
PEG Ratio
2.66
Balance Sheet Safety
0.76
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
2.36
Net Debt / EBITDA
N/A
0.23%
Dividend Yield
1.81%
GEHC: 5Ties: 1MS: 3
GEHCMS

Historical Fundamentals

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GEHC

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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GEHC
$1.98
created per $1 retained over 3 years
Value Creator
Σ Retained
$5.49B
Δ Market Cap
+$10.87B
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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GEHC
38.2% Margin of Safety
Price is 38.2% below estimated fair value
Current Price: $61.59
Fair Value: $99.71
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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GEHC

What growth rate is the market pricing in at $62?

+5.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +10.5%

The market implies +5.2% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +10.5%, reflecting heavy growth investment.

MS

Requires positive FCF to compute implied growth rate.

Economic Moat Score

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GEHC
93/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.

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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GEHC
-2.36
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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GEHC
Insiders 0.4%Institutions 93.9%Retail & Other 5.8%
No. of Institutional Holders1,753
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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GEHC
8
Buys (3M)
8
Buys (12M)
Total value (12M): $6.42M
LOBO KEVIN A
Director
$641,800
@ $64.18 · 2026-05-22
HOCHMAN RODNEY F
Director
$100,365
@ $62.03 · 2026-05-12
YANG WATKIN PHOEBE L
Director
$63,006
@ $63.01 · 2026-05-08
CULP HENRY LAWRENCE JR.
Director
$5.00M
@ $61.88 · 2026-05-06
STROMBERG WILLIAM J
Director
$61,689
@ $61.69 · 2026-05-06
SACCARO JAMES
Chief Financial Officer
$200,585
@ $60.60 · 2026-05-01
ARDUINI PETER J
Chief Executive Officer
$249,827
@ $59.92 · 2026-04-30
JIMENEZ FRANK R
General Counsel
$105,788
@ $60.45 · 2026-04-30
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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GEHC
0
Sells (3M)
0
Sells (12M)
NEWCOMB GEORGE A.
Officer
$185,080
@ $92.54 · 2025-02-18
ROTT ROLAND
Officer
$309,339
@ $86.48 · 2024-11-06
RACKLIFFE PHILIP
Chief Executive Officer
$78,867
@ $87.63 · 2024-11-05
STACHERSKI KENNETH ROBERT
Officer
$1.58M
@ $83.22 · 2024-08-14
WESTRICK THOMAS J
Officer
$222,145
@ $80.78 · 2024-08-07
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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GEHC
FearGreed
😨Fear(37/100)

"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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GEHC
⚪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 (37)
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 GEHC Full AnalysisView MS Full Analysis

Frequently Asked Questions: GEHC vs MS

Is GE HealthCare Technologies Inc. or Morgan Stanley more undervalued in 2026?▼

Based on our discounted cash flow model, GEHC trades at a 38.2% margin of safety (intrinsic value $100 vs. price $62), compared to MS's 25.0% margin of safety (intrinsic $298 vs. $223).

Which stock has a wider economic moat, GE HealthCare Technologies Inc. or Morgan Stanley?▼

GEHC scores 93/100 (Wide moat), while MS scores 80/100 (Wide 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. GEHC scores 2.0 (Grey 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, GE HealthCare Technologies Inc. or Morgan Stanley?▼

GEHC earns 8.6% ROIC versus MS's 3.4%. 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, GE HealthCare Technologies Inc.'s or Morgan Stanley's?▼

GEHC's dividend earns a safety score of 91/100 (Very Safe), compared to MS's 79/100 (Safe). GEHC has raised its dividend for 2 consecutive years.