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GS vs MS
Which Stock Would AI Choose? Goldman Sachs (GS) vs. Morgan Stanley (MS) Stock Comparison
Key Takeaways
- Both GS and MS reported record-breaking quarterly results in recent weeks, fueled by a historic surge in equities trading and investment banking activity tied to the global artificial intelligence boom.
- Goldman Sachs delivered a substantially larger earnings surprise relative to analyst expectations, while Morgan Stanley achieved record revenue and profit across a more diversified business mix that includes a massive wealth management franchise.
- Morgan Stanley's wealth and investment management division now oversees $10 trillion in total client assets, providing a steadier revenue base compared to Goldman Sachs's heavier reliance on volatile trading and advisory income.
- Both firms are trading near all-time highs with similar year-to-date returns, but Goldman Sachs trades at a slightly lower trailing P/E (price-to-earnings) ratio, while Morgan Stanley offers a marginally higher dividend yield.
- The AI-driven trading environment and robust IPO (initial public offering) pipeline have created favorable tailwinds for both institutions, though their differing business models present distinct risk-reward profiles for investors.
Introduction
Few rivalries on Wall Street run as deep as the one between Goldman Sachs and Morgan Stanley. These two premier investment banks have competed for talent, deals, and market share for decades, and both have evolved well beyond their traditional advisory roots. Today, they represent two distinct visions of what a modern financial services powerhouse should look like. For traders and investors evaluating the financial sector, understanding how GS and MS compare across business models, growth drivers, and market positioning is essential. This comparison examines their recent performance, strategic direction, and relative standing in the current market environment.
GS Overview and Recent Performance
The Goldman Sachs Group, Inc. is a global financial institution organized into three primary segments: Global Banking & Markets, Asset & Wealth Management, and Platform Solutions. Known historically for its investment banking prowess and trading capabilities, Goldman Sachs has in recent years pursued a strategy to diversify its revenue streams toward more predictable, fee-based income.
In recent weeks, Goldman Sachs reported second-quarter results that handily eclipsed Wall Street expectations. The firm posted adjusted earnings per share of $20.98, roughly $6.60 above the consensus estimate, while revenue reached $20.34 billion — a 39% increase from the prior-year period. The standout performer was the Global Banking & Markets division, which generated $15.52 billion in net revenues, up 53% year over year. Equities trading revenue surged 72% to $7.42 billion, and investment banking fees climbed 55% to $3.40 billion, reflecting strength across equity underwriting, debt underwriting, and advisory services. The firm's annualized return on equity (ROE) — a key profitability metric measuring how efficiently a company uses shareholder capital — reached 23.5% for the quarter. Goldman Sachs also raised its quarterly dividend to $5.00 per share, signaling confidence in sustained capital generation. Over the past year, GS shares have advanced approximately 54%, and the stock recently traded near $1,065 with a market capitalization around $314 billion.
MS Overview and Recent Performance
Morgan Stanley operates through three core divisions: Institutional Securities, Wealth Management, and Investment Management. Over the past decade, the firm has strategically tilted toward wealth and asset management, creating what management calls an "Integrated Firm" model that combines institutional capabilities with a massive retail and advisory platform.
Morgan Stanley's recent second-quarter results were similarly record-setting. The firm posted earnings per share of $3.46, well above analyst forecasts of approximately $2.94, on revenue of $21.35 billion — a 27% increase from a year earlier. Equities trading revenue hit an all-time high of $6.30 billion, surging 69% year over year, with notable strength in Asian markets. Investment banking revenue rose 58% to $2.44 billion, driven by robust M&A (mergers and acquisitions) advisory activity and a resurgent IPO market. The wealth management division generated a record $8.86 billion in revenue and attracted $148 billion in net new assets, pushing total client assets across wealth and investment management to the $10 trillion milestone for the first time. The firm posted a return on tangible common equity (ROTCE) — a key measure of profitability that excludes intangible assets — of 26.6% and maintained a strong standardized CET1 (Common Equity Tier 1) capital ratio of 14.8%, reflecting a conservative capital position. MS shares have risen roughly 57% over the trailing year, recently trading near $215 with a market capitalization of approximately $339 billion.
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Head-to-Head Comparison
While both Goldman Sachs and Morgan Stanley delivered exceptional recent results, the composition of their earnings reveals meaningful strategic differences. Morgan Stanley's wealth management division, which generated $8.86 billion in revenue in the most recent quarter, provides a substantial and relatively stable earnings stream that is less correlated with market volatility. Goldman Sachs, by contrast, remains more heavily weighted toward institutional trading and investment banking, which tend to produce outsized returns during active markets but can retreat quickly when conditions cool. This dynamic was evident in the recent quarter: Goldman Sachs's Global Banking & Markets segment accounted for roughly 76% of firm-wide revenue, while Morgan Stanley's Institutional Securities contributed approximately 52%.
On valuation, GS trades at a trailing P/E ratio of roughly 16.5, slightly below MS at approximately 17.4. Morgan Stanley offers a dividend yield of about 2.1% compared to Goldman Sachs's 1.9%. Both firms have strong capital positions, though Morgan Stanley's 14.8% CET1 ratio and $20 billion share repurchase authorization underscore significant capacity for shareholder returns. In terms of risk factors, Goldman Sachs faces ongoing headwinds from its Platform Solutions segment — which includes the wind-down of its consumer banking initiatives — while Morgan Stanley's growing reliance on workplace-channel asset flows may face cyclical pressure if IPO activity decelerates. From a market sentiment perspective, both stocks benefit from the broader AI investment cycle, which is driving dealmaking, capital raising, and trading volumes across global markets.
Tickeron AI Verdict
Based on observable factors such as trend consistency, business diversification, stability of earnings, and relative market positioning, Tickeron's AI analysis would likely lean toward Morgan Stanley in the current environment. The firm's combination of record institutional securities performance alongside a massive, $10 trillion wealth and investment management platform provides a more balanced earnings profile — one that can sustain momentum even if trading volumes moderate. Morgan Stanley's higher ROTCE of 26.6%, robust net new asset inflows, and disciplined expense management further strengthen the case. That said, Goldman Sachs's sharper earnings momentum and lower relative valuation could make it the more tactically attractive candidate during periods of elevated market activity and volatility. The probabilistic assessment ultimately depends on whether an investor prioritizes diversified stability or concentrated upside exposure to capital markets activity.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is GS is a Hold and MS is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
GS’s FA Score shows that 2 FA rating(s) are green whileMS’s FA Score has 2 green FA rating(s).
- GS’s FA Score: 2 green, 3 red.
- MS’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
GS’s TA Score shows that 4 TA indicator(s) are bullish while MS’s TA Score has 3 bullish TA indicator(s).
- GS’s TA Score: 4 bullish, 4 bearish.
- MS’s TA Score: 3 bullish, 5 bearish.
Price Growth
GS (@Investment Banks/Brokers) experienced а +0.95% price change this week, while MS (@Investment Banks/Brokers) price change was -3.05% for the same time period.
The average weekly price growth across all stocks in the @Investment Banks/Brokers industry was -0.45%. For the same industry, the average monthly price growth was -9.83%, and the average quarterly price growth was -18.90%.
Reported Earning Dates
GS is expected to report earnings on Oct 13, 2026.
MS is expected to report earnings on Oct 14, 2026.
Industries' Descriptions
@Investment Banks/Brokers (-0.45% weekly)These banks specialize in underwriting (helping companies with debt financing or equity issuances), IPOs, facilitating mergers and other corporate reorganizations and acting as a broker or financial advisor for institutions. They might also trade securities on their own accounts. Investment banks potentially thrive on expanding its network of clients, since that could help them increase profits. Goldman Sachs, Morgan Stanley and CME Group Inc are some of the largest investment banking companies.
| GS | MS | GS / MS | |
| Capitalization | 314B | 339B | 93% |
| EBITDA | N/A | N/A | - |
| Gain YTD | 22.360 | 22.713 | 98% |
| P/E Ratio | 16.45 | 17.41 | 94% |
| Revenue | 60.4B | 68.8B | 88% |
| Total Cash | N/A | 4.29B | - |
| Total Debt | 435B | 394B | 110% |
GS | MS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 82 Overvalued | 86 Overvalued | |
PROFIT vs RISK RATING 1..100 | 5 | 6 | |
SMR RATING 1..100 | 7 | 7 | |
PRICE GROWTH RATING 1..100 | 44 | 44 | |
P/E GROWTH RATING 1..100 | 50 | 39 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
GS's Valuation (82) in the Investment Banks Or Brokers industry is in the same range as MS (86). This means that GS’s stock grew similarly to MS’s over the last 12 months.
GS's Profit vs Risk Rating (5) in the Investment Banks Or Brokers industry is in the same range as MS (6). This means that GS’s stock grew similarly to MS’s over the last 12 months.
GS's SMR Rating (7) in the Investment Banks Or Brokers industry is in the same range as MS (7). This means that GS’s stock grew similarly to MS’s over the last 12 months.
GS's Price Growth Rating (44) in the Investment Banks Or Brokers industry is in the same range as MS (44). This means that GS’s stock grew similarly to MS’s over the last 12 months.
MS's P/E Growth Rating (39) in the Investment Banks Or Brokers industry is in the same range as GS (50). This means that MS’s stock grew similarly to GS’s over the last 12 months.
| GS | MS | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 58% | 4 days ago 47% |
| Stochastic ODDS (%) | 4 days ago 62% | 4 days ago 55% |
| Momentum ODDS (%) | 4 days ago 68% | 4 days ago 75% |
| MACD ODDS (%) | 4 days ago 79% | 4 days ago 50% |
| TrendWeek ODDS (%) | 4 days ago 66% | 4 days ago 55% |
| TrendMonth ODDS (%) | 4 days ago 56% | 4 days ago 54% |
| Advances ODDS (%) | 6 days ago 61% | 6 days ago 65% |
| Declines ODDS (%) | 4 days ago 54% | 4 days ago 58% |
| BollingerBands ODDS (%) | 4 days ago 53% | 4 days ago 60% |
| Aroon ODDS (%) | 4 days ago 52% | 4 days ago 51% |
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GS and
Correlation & Price change
A.I.dvisor indicates that over the last year, GS has been closely correlated with MS. These tickers have moved in lockstep 83% of the time. This A.I.-generated data suggests there is a high statistical probability that if GS jumps, then MS could also see price increases.
MS and
Correlation & Price change
A.I.dvisor indicates that over the last year, MS has been closely correlated with GS. These tickers have moved in lockstep 83% of the time. This A.I.-generated data suggests there is a high statistical probability that if MS jumps, then GS could also see price increases.