Compare Stocks › MS vs TSCO

Morgan Stanley (MS) vs Tractor Supply Company (TSCO): 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%. TSCO is fairly valued at $30, with an intrinsic value of $36 and a margin of safety of 17%. Of the two, MS has the wider margin of safety.

Morgan Stanley

$223.17

TSCO

Tractor Supply Company

$30.24

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.

TSCO

★Tractor Supply Company has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
★Tractor Supply Company scores 86/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.

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.

TSCO

⚠Each dollar of retained earnings has produced only $0.04 of earning power — shareholders may have been better served by dividends.
⚠High leverage (2.46x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
⚠18 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.

Key Valuation Metrics

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TSCO

Valuation

N/A

Free Cash Flow

$740.49M

N/A

FCF Yield

4.67%

20.21

Trailing P/E

14.90

17.56

Forward P/E

13.13

Quality & Moat

3.38%

ROIC

9.00%

16.39%

ROE

45.50%

87.39%

Gross Margin

36.43%

2.66

PEG Ratio

1.34

Balance Sheet Safety

Net cash

Net Debt / Equity

2.46

N/A

Interest Coverage

N/A

Net Debt / EBITDA

3.17

1.81%

Dividend Yield

3.13%

MS: 2Ties: 1TSCO: 6

MSTSCO

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.

TSCO

$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

TSCO

$0.82

created per $1 retained over 3 years

Mediocre Allocator

Σ Retained

$1.89B

Δ Market Cap

+$1.55B

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

TSCO

16.7% Margin of Safety

Price is 16.7% below estimated fair value

Current Price: $30.24

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $36.29

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.

TSCO

What growth rate is the market pricing in at $30?

+7.8%

Market-Implied Owner Earnings Growth

Standard FCF implies +13.1%

The market implies +7.8% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +13.1%, reflecting heavy 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.

TSCO

86/100

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.

TSCO

-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.

TSCO

Insiders 0.3%Institutions 95.7%Retail & Other 4.0%

No. of Institutional Holders1,607

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

TSCO

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): $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

TSCO

Sells (3M)

Sells (12M)

Total value (12M): $24.89M

YANKEE COLIN

Officer

$618,263

@ $55.35 · 2026-02-13

MILLS ROBERT D.

Chief Technology Officer

$3.41M

@ $54.12 · 2026-02-11

ESTEP JONATHAN S

Officer

$3.23M

@ $54.03 · 2026-02-11

BARTON KURT D.

Chief Financial Officer

$101,378

@ $53.81 · 2026-02-10

BARTON KURT D.

Chief Financial Officer

$104,050

@ $53.94 · 2026-02-06

LAWTON HARRY A III

Chief Executive Officer

$4.50M

@ $53.16 · 2026-02-03

KERSEY MELISSA

Officer

$377,426

@ $59.79 · 2025-08-13

WEIKEL MARK J

Director

$479,360

@ $59.92 · 2025-08-07

YANKEE COLIN

Officer

$390,121

@ $58.40 · 2025-07-28

ELLISON-SOUTHALL NONI L

General Counsel

$332,592

@ $63.96 · 2025-07-24

BARTON KURT D.

Chief Financial Officer

$5.76M

@ $63.96 · 2025-07-24

JACKSON DENISE L

Director

$68,152

@ $58.50 · 2025-07-22

JACKSON DENISE L

Director

$115,500

@ $57.75 · 2025-07-10

JACKSON DENISE L

Director

$57,000

@ $57.00 · 2025-07-09

ESTEP JONATHAN S

Officer

$2.01M

@ $56.00 · 2025-07-07

JACKSON DENISE L

Director

$258,965

@ $55.93 · 2025-07-07

JACKSON DENISE L

Director

$85,250

@ $55.00 · 2025-07-02

ESTEP JONATHAN S

Officer

$3.00M

@ $53.00 · 2025-06-23

RUBIN MATTHEW LAWRENCE

President

$145,446

@ $51.76 · 2025-05-14

RUBIN MATTHEW LAWRENCE

Officer

$222,091

@ $57.69 · 2025-02-20

BARTON KURT D.

Chief Financial Officer

$680,176

@ $56.00 · 2025-02-13

YANKEE COLIN

Officer

$1.33M

@ $54.15 · 2025-02-11

KERSEY MELISSA

Officer

$494,472

@ $53.17 · 2025-02-06

LAWTON HARRY A III

Chief Executive Officer

$4.81M

@ $54.59 · 2025-02-03

BARTON KURT D.

Chief Financial Officer

$6.96M

@ $295.64 · 2024-10-01

BARTON KURT D.

Chief Financial Officer

$3.02M

@ $275.00 · 2024-08-28

RUBIN MATTHEW LAWRENCE

Officer

$141,669

@ $262.35 · 2024-08-12

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.

TSCO

😨Fear(31/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

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)

TSCO

⚪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 (31)

View MS Full Analysis View TSCO Full Analysis

Frequently Asked Questions: MS vs TSCO

Is Morgan Stanley or Tractor Supply Company 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 TSCO's 16.7% margin of safety (intrinsic $36 vs. $30).

Which stock has a wider economic moat, Morgan Stanley or Tractor Supply Company?▼

TSCO scores 86/100 (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. TSCO scores 4.8 (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 Tractor Supply Company?▼

TSCO earns 9.0% 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 Tractor Supply Company's?▼

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