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Morgan Stanley (MS) vs PPG Industries, Inc. (PPG): Which Is the Better Buy in 2026?

As of 2026-06-19, MS is undervalued at $223, with a DCF intrinsic value of $298 and a margin of safety of 25%. PPG is overvalued at $118, with an intrinsic value of $105 and a margin of safety of -13%. Of the two, MS has the wider margin of safety.

MS
Morgan Stanley
$223.17
VS
PPG
PPG Industries, Inc.
$118.25

Rewards

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.
PPG
  • ★PPG Industries, Inc. scores 71/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Free cash flow has grown at a 34.6% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • ★Each dollar of retained earnings has created $2.81 of earning power — management is an exceptional capital allocator.

Risks

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.
PPG

    Key Valuation Metrics

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    MS
    PPG
    Valuation
    N/A
    Free Cash Flow
    $1.16B
    N/A
    FCF Yield
    4.41%
    20.21
    Trailing P/E
    16.92
    17.56
    Forward P/E
    13.65
    Quality & Moat
    3.38%
    ROIC
    10.94%
    16.39%
    ROE
    20.75%
    87.39%
    Gross Margin
    41.69%
    2.66
    PEG Ratio
    1.84
    Balance Sheet Safety
    Net cash
    Net Debt / Equity
    0.74
    N/A
    Interest Coverage
    N/A
    N/A
    Net Debt / EBITDA
    2.25
    1.81%
    Dividend Yield
    2.35%
    MS: 2Ties: 1PPG: 6
    MSPPG

    Historical Fundamentals

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    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.

    PPG

    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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    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
    PPG
    $-3.15
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $2.11B
    Δ Market Cap
    $-6.67B
    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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    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
    PPG
    19.7% Margin of Safety
    Price is 19.7% below estimated fair value
    Current Price: $118.25
    Fair Value: $147.34
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

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    MS

    Requires positive FCF to compute implied growth rate.

    PPG

    What growth rate is the market pricing in at $118?

    +8.1%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +12.3%

    The market implies +8.1% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding +12.3%, reflecting heavy growth investment expected to generate future returns.

    Economic Moat Score

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

    Wide moat driven primarily by revenue predictability. ROIC Consistency 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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    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.
    PPG
    -2.48
    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

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    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.
    PPG
    Insiders 0.1%Institutions 94.9%Retail & Other 5.0%
    No. of Institutional Holders1,421
    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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    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
    PPG
    0
    Buys (3M)
    0
    Buys (12M)
    No open market insider purchases found.
    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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    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
    PPG
    0
    Sells (3M)
    5
    Sells (12M)
    Total value (12M): $15.22M
    FOULKES ANNE M.
    Officer
    $447,848
    @ $124.61 · 2026-02-20
    MORALES VINCENT J
    Chief Financial Officer
    $10.23M
    @ $131.00 · 2026-02-13
    MORALES VINCENT J
    Chief Financial Officer
    $3.71M
    @ $125.00 · 2026-02-04
    HAGERTY CHANCEY E.
    Officer
    $260,078
    @ $115.59 · 2026-01-29
    MORALES VINCENT J
    Chief Financial Officer
    $572,000
    @ $110.00 · 2026-01-15
    KNAVISH TIMOTHY M
    Chief Executive Officer
    $568,080
    @ $118.35 · 2025-02-14
    FOULKES ANNE M.
    General Counsel
    $249,713
    @ $125.80 · 2024-10-31
    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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    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.
    PPG
    FearGreed
    😐Neutral(56/100)

    "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

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    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)
    PPG
    ⚪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 (56)
    View MS Full AnalysisView PPG Full Analysis

    Frequently Asked Questions: MS vs PPG

    Is Morgan Stanley or PPG Industries, Inc. 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 PPG's -12.8% margin of safety (intrinsic $105 vs. $118).

    Which stock has a wider economic moat, Morgan Stanley or PPG Industries, Inc.?▼

    MS scores 80/100 (Wide moat), while PPG scores 71/100 (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. PPG scores 3.6 (Safe 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, Morgan Stanley or PPG Industries, Inc.?▼

    PPG earns 10.9% 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, Morgan Stanley's or PPG Industries, Inc.'s?▼

    PPG's dividend earns a safety score of 94/100 (Very Safe), compared to MS's 79/100 (Safe). PPG has raised its dividend for 3 consecutive years.