Compare Stocks › MS vs RJF

Morgan Stanley (MS) vs Raymond James Financial, Inc. (RJF): Which Is the Better Buy in 2026?

As of 2026-08-03, MS is undervalued at $210, with a DCF intrinsic value of $269 and a margin of safety of 22%. RJF is undervalued at $176, with an intrinsic value of $466 and a margin of safety of 62%. Of the two, RJF has the wider margin of safety.

Morgan Stanley

$210.42

RJF

Raymond James Financial, Inc.

$175.98

Rewards

★Gross margin of 87.6% 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.

RJF

★Gross margin of 93.2% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
★Raymond James Financial, Inc. scores 93/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
★Each dollar of retained earnings has created $1.34 of earning power — management is creating shareholder value.

Risks

⚠Altman Z-Score of 0.29 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
⚠Insiders have sold $5.4M worth of stock in the past 3 months — significant insider liquidation.

RJF

⚠Altman Z-Score of 0.62 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
⚠Insiders have sold $2.8M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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RJF

Valuation

N/A

Free Cash Flow

N/A

FCF Yield

N/A

17.01

Trailing P/E

15.34

15.45

Forward P/E

12.41

Quality & Moat

3.68%

ROIC

12.50%

14.08%

ROE

16.89%

87.64%

Gross Margin

93.16%

1.99

PEG Ratio

0.86

Balance Sheet Safety

Net cash

Net Debt / Equity

Net cash

N/A

Interest Coverage

N/A

Net Debt / EBITDA

N/A

2.19%

Dividend Yield

1.23%

MS: 1Ties: 1RJF: 7

MSRJF

Historical Fundamentals

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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.

RJF

$1 Retained Earnings Test

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$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

RJF

$1.84

created per $1 retained over 3 years

Value Creator

Σ Retained

$4.79B

Δ Market Cap

+$8.83B

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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21.9% Margin of Safety

Price is 21.9% below estimated fair value

Current Price: $210.42

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $269.50

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

RJF

62.2% Margin of Safety

Price is 62.2% below estimated fair value

Current Price: $175.98

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $466.03

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

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Requires positive FCF to compute implied growth rate.

RJF

Requires positive FCF to compute implied growth rate.

Economic Moat Score

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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.

RJF

93/100

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.

Forensic Accounting

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-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.

RJF

-2.56

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Ownership Breakdown

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Insiders 24.4%Institutions 63.1%Retail & Other 12.5%

No. of Institutional Holders3,329

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.

RJF

Insiders 10.6%Institutions 82.2%Retail & Other 7.2%

No. of Institutional Holders1,268

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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Buys (3M)

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

RJF

Buys (3M)

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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Sells (3M)

Sells (12M)

Total value (12M): $64.71M

SCHAPIRO MARY L

Director

$212,055

@ $212.06 · 2026-07-28

PIZZI MICHAEL A

Officer

$5.21M

@ $215.55 · 2026-07-17

GROSSMAN ERIC F

Officer

$2.12M

@ $190.75 · 2026-04-20

SIMKOWITZ DANIEL A

President

$2.78M

@ $189.24 · 2026-04-17

SAPERSTEIN ANDREW MICHAEL

President

$9.74M

@ $188.59 · 2026-04-16

CRAWLEY MANDELL L.

Officer

$3.04M

@ $188.22 · 2026-04-16

SIMKOWITZ DANIEL A

President

$6.02M

@ $182.61 · 2026-01-30

PIZZI MICHAEL A

Officer

$3.69M

@ $184.55 · 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

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

PICK EDWARD N.

Chief Executive Officer

$16.43M

@ $164.34 · 2025-10-31

PIZZI MICHAEL A

Officer

$2.53M

@ $140.62 · 2025-07-17

GROSSMAN ERIC F

Officer

$1.69M

@ $141.12 · 2025-07-17

SMITH CHARLES AUBREY III

Officer

$2.81M

@ $140.30 · 2025-07-17

SIMKOWITZ DANIEL A

President

$4.09M

@ $141.13 · 2025-07-17

SIMKOWITZ DANIEL A

President

$3.70M

@ $127.37 · 2025-05-12

SAPERSTEIN ANDREW MICHAEL

President

$4.80M

@ $120.00 · 2025-05-02

HERZ ROBERT H

Director

$95,459

@ $119.32 · 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

PIZZI MICHAEL A

Officer

$2.52M

@ $136.92 · 2025-01-21

SAPERSTEIN ANDREW MICHAEL

President

$4.20M

@ $136.43 · 2025-01-21

GROSSMAN ERIC F

Officer

$1.78M

@ $136.20 · 2025-01-21

AKRAM RAJA

Chief Financial Officer

$2.38M

@ $136.01 · 2025-01-21

SIMKOWITZ DANIEL A

President

$5.00M

@ $136.61 · 2025-01-21

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

RJF

Sells (3M)

Sells (12M)

Total value (12M): $29.05M

ELWYN TASHTEGO S

Officer

$1.76M

@ $176.06 · 2026-07-28

RANEY STEVEN M

Officer

$998,033

@ $172.97 · 2026-07-27

ALLAIRE BELLA LOYKHTER

Officer

$4.21M

@ $142.34 · 2026-03-19

SANTELLI JONATHAN N

General Counsel

$767,079

@ $170.46 · 2026-02-04

REILLY PAUL C

Officer and Director

$21.32M

@ $163.15 · 2025-12-15

ALLAIRE BELLA LOYKHTER

Officer

$963,228

@ $146.61 · 2025-05-29

BUNN JAMES E.

Officer

$498,184

@ $136.49 · 2025-04-28

SANTELLI JONATHAN N

General Counsel

$699,932

@ $168.25 · 2025-01-31

ELWYN TASHTEGO S

Officer

$1.59M

@ $159.47 · 2024-12-13

SANTELLI JONATHAN N

General Counsel

$513,318

@ $165.59 · 2024-12-05

CARTER HORACE

Officer

$825,147

@ $165.03 · 2024-12-04

REID SHANNON B

Officer

$205,141

@ $165.30 · 2024-12-04

LARSON KATHERINE H.

Officer

$247,691

@ $166.01 · 2024-12-03

ALLAIRE BELLA LOYKHTER

Officer

$769,791

@ $166.59 · 2024-12-03

RANEY STEVEN M

Officer

$2.34M

@ $169.02 · 2024-12-02

REILLY PAUL C

Chief Executive Officer

$8.37M

@ $167.30 · 2024-12-02

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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😐Neutral(57/100)

"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.

RJF

😏Greed(68/100)

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

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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⚪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 (57)

RJF

⚪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 (68)

View MS Full Analysis View RJF Full Analysis

Frequently Asked Questions: MS vs RJF

Is Morgan Stanley or Raymond James Financial, Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, RJF trades at a 62.2% margin of safety (intrinsic value $466 vs. price $176), compared to MS's 21.9% margin of safety (intrinsic $269 vs. $210).

Which stock has a wider economic moat, Morgan Stanley or Raymond James Financial, Inc.?▼

RJF 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. RJF scores 0.6 (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, Morgan Stanley or Raymond James Financial, Inc.?▼

RJF earns 12.5% ROIC versus MS's 3.7%. 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 Raymond James Financial, Inc.'s?▼

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