SafetyMargin.ioSafetyMargin.io
BlogWatchlistCompare
Compare Stocks › MS vs NSC

Morgan Stanley (MS) vs Norfolk Southern Corporation (NSC)

MS
Morgan Stanley
$158.55
VS
NSC
Norfolk Southern Corporation
$278.19

Rewards

MS
  • ★Gross margin of 87.1% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Each dollar of retained earnings has created $6.65 of market value — management is an exceptional capital allocator.
  • ★PEG ratio of 0.75 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
NSC
  • ★Norfolk Southern Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Norfolk Southern Corporation scores 71/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
  • ★Each dollar of retained earnings has created $2.35 of market value — management is an exceptional capital allocator.

Risks

MS
  • ⚠High leverage (4.56x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠Altman Z-Score of 0.29 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
  • ⚠7 insider sales totaling $25.2M with no purchases in the past 3 months — insiders are reducing their exposure.
NSC

    Key Valuation Metrics

    Learn more →
    MS
    NSC
    Valuation
    N/A
    Free Cash Flow
    $2.16B
    N/A
    FCF Yield
    3.45%
    15.53
    Trailing P/E
    21.84
    12.89
    Forward P/E
    20.52
    Quality & Moat
    3.43%
    ROIC
    8.98%
    14.42%
    ROE
    18.48%
    87.06%
    Gross Margin
    45.95%
    0.75
    PEG Ratio
    N/A
    Balance Sheet Safety
    4.56
    Debt / Equity
    1.15
    N/A
    Interest Coverage
    N/A
    N/A
    Net Debt / EBITDA
    2.91
    2.52%
    Dividend Yield
    1.94%
    MS: 4Ties: 1NSC: 3
    MSNSC

    Historical Fundamentals

    Learn more →
    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.

    NSC

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

    $1 Retained Earnings Test

    Learn more →
    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
    NSC
    $2.35
    created per $1 retained over 3 years
    Exceptional Value Creator
    Σ Retained
    $3.66B
    Δ Market Cap
    +$8.59B
    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

    Learn more →
    MS
    45.5% Margin of Safety
    Price is 45.5% below estimated fair value
    Current Price: $158.55
    Fair Value: $290.92
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    NSC
    0.5% Overvalued
    Price is 0.5% above estimated fair value
    Current Price: $278.19
    Fair Value: $276.75
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

    Learn more →
    MS

    Requires positive FCF to compute implied growth rate.

    NSC

    What growth rate is the market pricing in at $278?

    +12.0%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +15.9%

    The market implies +12.0% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +15.9%, reflecting heavy growth investment.

    Economic Moat Score

    Learn more →
    MS
    32/100
    No Moat
    70+ Wide · 40-69 Narrow · <40 None

    No durable moat detected, though revenue predictability shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

    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.
    NSC
    71/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat driven primarily by roic consistency. Reinvestment Efficiency 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

    Learn more →
    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.
    NSC
    -2.63
    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.

    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

    Learn more →
    MS
    Insiders 24.0%Institutions 62.7%Retail & Other 13.3%
    No. of Institutional Holders3,182
    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.
    NSC
    Insiders 0.1%Institutions 78.3%Retail & Other 21.7%
    No. of Institutional Holders2,270
    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

    Learn more →
    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
    NSC
    0
    Buys (3M)
    3
    Buys (12M)
    Total value (12M): $1.26M
    CLYBURN WILLIAM JR.
    Director
    $60,137
    @ $294.79 · 2025-12-05
    FAHMY, SAMEH
    Director
    $466,900
    @ $282.97 · 2025-11-05
    ANDERSON RICHARD H
    Director
    $732,823
    @ $281.86 · 2025-10-27
    LAMPHERE GILBERT H
    Director
    $157,735
    @ $259.86 · 2025-01-31
    ANDERSON RICHARD H
    Director
    $99,459
    @ $248.65 · 2024-12-13
    CLYBURN WILLIAM JR.
    Director
    $49,930
    @ $248.41 · 2024-12-13
    FAHMY, SAMEH
    Director
    $87,280
    @ $249.37 · 2024-12-12
    GEORGE MARK R.
    Chief Executive Officer
    $49,967
    @ $249.84 · 2024-12-11
    ANDERSON RICHARD H
    Director
    $257,850
    @ $257.85 · 2024-10-24
    FAHMY, SAMEH
    Director
    $255,000
    @ $255.00 · 2024-10-24
    FAHMY, SAMEH
    Director
    $244,097
    @ $244.10 · 2024-08-02
    ANDERSON RICHARD H
    Director
    $494,960
    @ $247.48 · 2024-07-29
    FAHMY, SAMEH
    Director
    $438,500
    @ $219.25 · 2024-06-14
    FAHMY, SAMEH
    Director
    $444,355
    @ $222.18 · 2024-06-03
    KELLEHER THOMAS COLM
    Director
    $501,958
    @ $219.96 · 2024-05-30
    HUFFARD JOHN C JR
    Director
    $747,288
    @ $219.92 · 2024-05-30
    LAMPHERE GILBERT H
    Director
    $149,446
    @ $219.77 · 2024-05-29
    MONGEAU CLAUDE
    Director
    $1.25M
    @ $221.00 · 2024-05-29
    ANDERSON RICHARD H
    Director
    $221,000
    @ $221.00 · 2024-05-29
    Open market purchases · includes direct & indirect ownership · excludes option exercises

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

    Insider Selling Activity

    Learn more →
    MS
    7
    Sells (3M)
    16
    Sells (12M)
    Total value (12M): $62.45M
    SIMKOWITZ DANIEL A
    President
    $6.02M
    @ $182.61 · 2026-01-30
    GROSSMAN ERIC F
    Officer
    $3.97M
    @ $184.00 · 2026-01-20
    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
    PIZZI MICHAEL A
    Officer
    $3.69M
    @ $184.55 · 2026-01-20
    SAPERSTEIN ANDREW MICHAEL
    President
    $5.57M
    @ $183.62 · 2026-01-20
    PICK EDWARD N.
    Chief Executive Officer
    $16.43M
    @ $164.34 · 2025-10-31
    GROSSMAN ERIC F
    Officer
    $1.69M
    @ $141.12 · 2025-07-17
    SIMKOWITZ DANIEL A
    President
    $4.09M
    @ $141.13 · 2025-07-17
    SMITH CHARLES AUBREY III
    Officer
    $2.81M
    @ $140.30 · 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
    GROSSMAN ERIC F
    Officer
    $1.78M
    @ $136.20 · 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
    PIZZI MICHAEL A
    Officer
    $2.52M
    @ $136.92 · 2025-01-21
    SAPERSTEIN ANDREW MICHAEL
    President
    $4.20M
    @ $136.43 · 2025-01-21
    CRAWLEY MANDELL L.
    Officer
    $368,375
    @ $105.25 · 2024-07-26
    AKRAM RAJA
    Officer
    $797,764
    @ $106.37 · 2024-07-18
    SIMKOWITZ DANIEL A
    President
    $4.26M
    @ $106.54 · 2024-07-17
    HERZ ROBERT H
    Director
    $106,621
    @ $106.62 · 2024-07-17
    CRAWLEY MANDELL L.
    Officer
    $692,663
    @ $99.61 · 2024-05-14
    GORMAN JAMES P
    Officer and Director
    $9.02M
    @ $90.21 · 2024-04-18
    SMITH CHARLES AUBREY III
    Officer
    $1.01M
    @ $90.09 · 2024-04-17
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    NSC
    0
    Sells (3M)
    1
    Sells (12M)
    Total value (12M): $253,442
    BHATT ANIL
    Chief Technology Officer
    $253,442
    @ $281.60 · 2025-11-19
    SHAW ALAN H
    Former
    $13.14M
    @ $255.98 · 2024-09-13
    NAG NABANITA C
    Officer
    $88,530
    @ $249.38 · 2024-07-29
    ELKINS CLAUDE E
    Officer
    $1.90M
    @ $228.43 · 2024-05-10
    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

    Learn more →
    MS
    FearGreed
    😐Neutral(48/100)

    "Market is pricing this stock without strong emotion in either direction"

    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.
    NSC
    FearGreed
    😐Neutral(47/100)

    "Market is pricing this stock without strong emotion in either direction"

    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

    Learn more →
    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: Neutral (48)
    NSC
    ⚪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: Neutral (47)
    View MS Full AnalysisView NSC Full Analysis
    Morgan Stanley (MS) vs Norfolk Southern Corporation (NSC) Stock Comparison | SafetyMargin.io