Compare Stocks › MS vs VLTO

Morgan Stanley (MS) vs Veralto Corporation (VLTO): 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%. VLTO is fairly valued at $84, with an intrinsic value of $86 and a margin of safety of 3%. Of the two, MS has the wider margin of safety.

Morgan Stanley

$223.17

VLTO

Veralto Corporation

$84.02

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.

VLTO

★Veralto Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★Veralto Corporation scores 92/100 on the Economic Moat Score (Wide Moat), with margin stability 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.

VLTO

⚠Each dollar of retained earnings has produced only $0.25 of earning power — shareholders may have been better served by dividends.
⚠PEG ratio of 2.47 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.

Key Valuation Metrics

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VLTO

Valuation

N/A

Free Cash Flow

$1.01B

N/A

FCF Yield

4.91%

20.21

Trailing P/E

21.65

17.56

Forward P/E

18.06

Quality & Moat

3.38%

ROIC

17.87%

16.39%

ROE

36.46%

87.39%

Gross Margin

59.86%

2.66

PEG Ratio

2.47

Balance Sheet Safety

Net cash

Net Debt / Equity

0.48

N/A

Interest Coverage

N/A

Net Debt / EBITDA

1.05

1.81%

Dividend Yield

0.62%

MS: 4Ties: 2VLTO: 3

MSVLTO

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.

VLTO

$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

VLTO

$2.87

created per $1 retained over 2 years

Exceptional Value Creator

Σ Retained

$1.57B

Δ Market Cap

+$4.52B

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

VLTO

2.8% Margin of Safety

Price is 2.8% below estimated fair value

Current Price: $84.02

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $86.46

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.

VLTO

What growth rate is the market pricing in at $84?

+9.7%

Market-Implied Owner Earnings Growth

Standard FCF implies +8.9%

The market implies +9.7% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +8.9%, 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.

VLTO

92/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Margin Stability 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.

VLTO

-2.47

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.

VLTO

Insiders 0.2%Institutions 98.8%Retail & Other 1.0%

No. of Institutional Holders1,506

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

VLTO

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

VLTO

Sells (3M)

Sells (12M)

Total value (12M): $2.69M

SKEETE BERNARD M

Officer

$26,463

@ $88.21 · 2026-05-01

AQUINO MELISSA

Officer

$1.43M

@ $96.60 · 2026-02-27

BYSTROM MATTIAS

Officer

$101,730

@ $101.73 · 2025-12-01

HONEYCUTT JENNIFER L

Chief Executive Officer

$1.13M

@ $106.26 · 2025-08-29

TRIVEDI SUREKHA

Officer

$85,266

@ $100.55 · 2025-06-02

BENETEAU LESLEY

Officer

$46,185

@ $100.84 · 2025-05-15

BYSTROM MATTIAS

Officer

$249,906

@ $99.96 · 2025-05-12

AQUINO MELISSA

Officer

$2.97M

@ $93.67 · 2025-05-01

TRIVEDI SUREKHA

Officer

$56,959

@ $96.54 · 2025-05-01

SKEETE BERNARD M

Officer

$42,480

@ $94.40 · 2025-05-01

HONEYCUTT JENNIFER L

Chief Executive Officer

$989,710

@ $95.00 · 2025-04-30

TRIVEDI SUREKHA

Officer

$57,260

@ $97.05 · 2025-04-01

HONEYCUTT JENNIFER L

Chief Executive Officer

$1.03M

@ $98.56 · 2025-03-24

TRIVEDI SUREKHA

Officer

$59,206

@ $100.35 · 2025-02-25

HONEYCUTT JENNIFER L

Chief Executive Officer

$1.05M

@ $100.35 · 2025-02-25

AQUINO MELISSA

Officer

$46,115

@ $99.60 · 2025-02-11

SKEETE BERNARD M

Officer

$21,756

@ $108.78 · 2024-11-26

TRIVEDI SUREKHA

Officer

$77,388

@ $102.91 · 2024-11-01

TRIVEDI SUREKHA

Officer

$84,750

@ $112.55 · 2024-10-01

HONEYCUTT JENNIFER L

Chief Executive Officer

$1.45M

@ $110.15 · 2024-09-30

TRIVEDI SUREKHA

Officer

$83,658

@ $111.10 · 2024-09-03

HONEYCUTT JENNIFER L

Chief Executive Officer

$1.48M

@ $111.98 · 2024-08-30

TRIVEDI SUREKHA

Officer

$813,890

@ $110.00 · 2024-08-21

TRIVEDI SUREKHA

Officer

$80,360

@ $106.72 · 2024-08-01

HONEYCUTT JENNIFER L

Chief Executive Officer

$1.39M

@ $105.17 · 2024-07-30

BYSTROM MATTIAS

Officer

$317,670

@ $105.89 · 2024-07-29

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.

VLTO

😐Neutral(44/100)

"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)

VLTO

⚪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 (44)

View MS Full Analysis View VLTO Full Analysis

Frequently Asked Questions: MS vs VLTO

Is Morgan Stanley or Veralto 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 VLTO's 2.8% margin of safety (intrinsic $86 vs. $84).

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

VLTO scores 92/100 (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. VLTO 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 Veralto Corporation?▼

VLTO earns 17.9% 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 Veralto Corporation's?▼

VLTO's dividend earns a safety score of 88/100 (Very Safe), compared to MS's 79/100 (Safe). VLTO has raised its dividend for 1 consecutive years.