Compare Stocks › MS vs SYY

Morgan Stanley (MS) vs Sysco Corporation (SYY): 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%. SYY is overvalued at $79, with an intrinsic value of $63 and a margin of safety of -25%. Of the two, MS has the wider margin of safety.

Morgan Stanley

$223.17

SYY

Sysco Corporation

$78.70

Rewards

★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.

SYY

★Sysco Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
★Sysco Corporation scores 90/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
★Free cash flow has grown at a 11.5% CAGR over the past 4 years, demonstrating strong earnings power growth.

Risks

⚠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.

SYY

⚠Gross margin of 18.5% is low, suggesting a competitive or commodity-like market with limited pricing power.
⚠High leverage (5.88x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.

Key Valuation Metrics

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SYY

Valuation

N/A

Free Cash Flow

$1.87B

N/A

FCF Yield

4.96%

20.21

Trailing P/E

21.86

17.56

Forward P/E

15.89

Quality & Moat

3.38%

ROIC

13.98%

16.39%

ROE

81.89%

87.39%

Gross Margin

18.54%

2.66

PEG Ratio

1.53

Balance Sheet Safety

Net cash

Net Debt / Equity

5.88

N/A

Interest Coverage

N/A

Net Debt / EBITDA

2.96

1.81%

Dividend Yield

2.77%

MS: 3Ties: 1SYY: 5

MSSYY

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.

SYY

$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

SYY

$-1.45

created per $1 retained over 3 years

Market Cap Declined

Σ Retained

$2.55B

Δ Market Cap

$-3.70B

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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25.0% Margin of Safety

Price is 25.0% below estimated fair value

Current Price: $223.17

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $297.53

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

SYY

24.5% Overvalued

Price is 24.5% above estimated fair value

Current Price: $78.70

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $63.21

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.

SYY

What growth rate is the market pricing in at $79?

+11.0%

Market-Implied Owner Earnings Growth

Standard FCF implies +12.0%

The market implies +11.0% Owner Earnings growth, roughly in line with history — reasonably priced.

Standard FCF implies +12.0%, reflecting ongoing growth investment.

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.

SYY

90/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

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

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.

SYY

-2.60

Unlikely Manipulator

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

M-Score Trend

Ownership Breakdown

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Insiders 24.3%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.

SYY

Insiders 0.2%Institutions 89.8%Retail & Other 10.0%

No. of Institutional Holders2,041

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

SYY

Buys (3M)

Buys (12M)

Total value (12M): $1.00M

HINSHAW JOHN M

Director

$1.00M

@ $75.17 · 2026-05-26

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): $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

SYY

Sells (3M)

Sells (12M)

Total value (12M): $8.13M

TALTON SHEILA G

Director

$232,455

@ $82.99 · 2026-02-02

PHILLIPS RONALD L

Officer

$453,681

@ $81.00 · 2026-01-27

PHILLIPS RONALD L

Officer

$77,841

@ $81.00 · 2025-09-11

PHILLIPS RONALD L

Officer

$595,431

@ $81.00 · 2025-09-02

PHILLIPS RONALD L

Officer

$509,166

@ $81.00 · 2025-08-13

GUTIERREZ VICTORIA L

Officer

$10,807

@ $80.65 · 2025-08-11

PHILLIPS RONALD L

Officer

$3.05M

@ $81.00 · 2025-07-23

BERTRAND GREG D

Officer

$3.20M

@ $80.00 · 2025-07-22

TALTON SHEILA G

Director

$25,228

@ $70.87 · 2025-05-01

BERTRAND GREG D

Officer

$3.70M

@ $77.00 · 2025-01-02

BERTRAND GREG D

Officer

$1.75M

@ $80.00 · 2024-12-04

MCFADDEN EVE MANTELL

General Counsel

$519,920

@ $80.00 · 2024-12-04

TALTON SHEILA G

Director

$216,427

@ $74.63 · 2024-11-19

MCFADDEN EVE MANTELL

General Counsel

$303,104

@ $75.10 · 2024-11-01

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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😏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.

SYY

😐Neutral(55/100)

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

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: Greed (70)

SYY

⚪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 (55)

View MS Full Analysis View SYY Full Analysis

Frequently Asked Questions: MS vs SYY

Is Morgan Stanley or Sysco Corporation 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 SYY's -24.5% margin of safety (intrinsic $63 vs. $79).

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

SYY 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. SYY scores 5.0 (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 Sysco Corporation?▼

SYY earns 14.0% 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 Sysco Corporation's?▼

MS's dividend earns a safety score of 79/100 (Safe), compared to SYY's 69/100 (Safe). MS has raised its dividend for 3 consecutive years.