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Morgan Stanley (MS) vs Ralph Lauren Corporation (RL): Which Is the Better Buy in 2026?

As of 2026-09-17, MS is undervalued at $202, with a DCF intrinsic value of $303 and a margin of safety of 33%. RL is fairly valued at $338, with an intrinsic value of $385 and a margin of safety of 12%. Of the two, MS has the wider margin of safety.

MS
Morgan Stanley
$202.42
VS
RL
Ralph Lauren Corporation
$338.36

Rewards

MS
  • ★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.
RL
  • ★Ralph Lauren Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Gross margin of 70.3% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Ralph Lauren Corporation scores 90/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

Risks

MS
  • ⚠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.
RL
  • ⚠Insiders have sold $3.7M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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MS
RL
Valuation
N/A
Free Cash Flow
$880.09M
N/A
FCF Yield
4.37%
16.34
Trailing P/E
21.15
14.84
Forward P/E
16.18
Quality & Moat
3.53%
ROIC
21.21%
17.97%
ROE
37.54%
87.64%
Gross Margin
70.27%
1.82
PEG Ratio
1.83
Balance Sheet Safety
Net cash
Net Debt / Equity
0.39
N/A
Interest Coverage
N/A
N/A
Net Debt / EBITDA
0.67
2.27%
Dividend Yield
1.18%
MS: 5Ties: 2RL: 2
MSRL

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.

RL

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
RL
$6.32
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$1.72B
Δ Market Cap
+$10.85B
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
33.2% Margin of Safety
Price is 33.2% below estimated fair value
Current Price: $202.42
Fair Value: $303.09
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
RL
12.1% Margin of Safety
Price is 12.1% below estimated fair value
Current Price: $338.36
Fair Value: $384.90
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.

RL

What growth rate is the market pricing in at $338?

+9.3%
Market-Implied Owner Earnings Growth
Standard FCF implies +10.3%

The market implies +9.3% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +10.3%, 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.
RL
90/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. ROIC Consistency 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.

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.
RL
-2.55
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 24.4%Institutions 63.2%Retail & Other 12.4%
No. of Institutional Holders3,488
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.
RL
Insiders 2.5%Institutions 107.4%
No. of Institutional Holders1,139
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
RL
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
2
Sells (3M)
14
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
SIMKOWITZ DANIEL A
President
$4.09M
@ $141.13 · 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
$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
AKRAM RAJA
Chief Financial Officer
$2.38M
@ $136.01 · 2025-01-21
SIMKOWITZ DANIEL A
President
$5.00M
@ $136.61 · 2025-01-21
GROSSMAN ERIC F
Officer
$1.78M
@ $136.20 · 2025-01-21
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
RL
2
Sells (3M)
6
Sells (12M)
Total value (12M): $23.82M
RANFTL ROBERT P
Chief Operating Officer
$1.10M
@ $377.81 · 2026-08-18
ALAGOZ HALIDE
Officer
$2.64M
@ $402.77 · 2026-08-10
RANFTL ROBERT P
Chief Operating Officer
$2.34M
@ $359.56 · 2026-06-03
ALAGOZ HALIDE
Officer
$405,440
@ $362.00 · 2026-03-04
LOUVET PATRICE
Chief Executive Officer
$16.65M
@ $354.22 · 2026-02-10
ALAGOZ HALIDE
Officer
$688,812
@ $366.00 · 2025-12-02
ALAGOZ HALIDE
Officer
$740,829
@ $317.00 · 2025-09-04
ALAGOZ HALIDE
Officer
$1.56M
@ $295.00 · 2025-08-27
RANFTL ROBERT P
Chief Operating Officer
$3.26M
@ $282.03 · 2025-08-19
LOUVET PATRICE
Chief Executive Officer
$1.81M
@ $240.00 · 2025-05-05
LOUVET PATRICE
Chief Executive Officer
$3.44M
@ $232.50 · 2025-03-24
ALAGOZ HALIDE
Officer
$1.92M
@ $285.00 · 2025-02-18
LOUVET PATRICE
Chief Executive Officer
$5.45M
@ $227.16 · 2024-12-11
LAUREN DAVID R
Officer and Director
$8.32M
@ $221.14 · 2024-11-08
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
😐Neutral(52/100)

"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.
RL
FearGreed
😨Fear(38/100)

"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.

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: Neutral (52)
RL
⚪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 (38)
View MS Full AnalysisView RL Full Analysis

Frequently Asked Questions: MS vs RL

Is Morgan Stanley or Ralph Lauren Corporation more undervalued in 2026?▼

Based on our discounted cash flow model, MS trades at a 33.2% margin of safety (intrinsic value $303 vs. price $202), compared to RL's 12.1% margin of safety (intrinsic $385 vs. $338).

Which stock has a wider economic moat, Morgan Stanley or Ralph Lauren Corporation?▼

RL scores 90/100 (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. RL scores 5.9 (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 Ralph Lauren Corporation?▼

RL earns 21.2% ROIC versus MS's 3.5%. 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 Ralph Lauren Corporation's?▼

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