Bank of America vs Morgan Stanley

Bank of America Corp. and Morgan Stanley are compared on this page, examining their business models, financial performance, and market context in a neutral, accessible way. The aim is to help readers understand differences and similarities between the firms without subjective judgments. Educational content, not financial advice.

Bank of America Corp. and Morgan Stanley are compared on this page, examining their business models, financial performance, and market context in a neutral, accessible way. The aim is to help readers ...

Comparison Snapshot

Key Financial Metrics

BAC

Metric

MS

$375.19B

Market Cap

$287.92B

5.98%

Potential Profit

-6.24%

Buy

Analyst Rating

Buy

Why It's Moving

Bank of America CEO Fuels Optimism with Bullish 2026 Economic Outlook and Strong Q4 Beat.

Q4 revenue hit $28.5 billion, beating expectations by over $500 million, powered by 10% net interest income surge from higher deposits, loans, and global markets activity.
Consumer resilience shines: Debit and credit card spending jumped 6% to $255 billion, with past-due credit card balances improving to 1.27%, easing credit quality fears.
Moynihan ups 2026 GDP view to 2.8% from 2.6%, citing solid bank earnings and early-year spending trends; Goldman Sachs hikes price target to $67 with Buy rating.

Sentiment:

🐃Bullish

Morgan Stanley Earns Zacks 'Strong Buy' Upgrade on Surging Earnings Optimism

Zacks Consensus Estimate for 2025 jumped 8.3% over the past three months, placing MS in the top 5% of stocks for earnings revision trends.
The upgrade signals improving fundamentals, with expectations of steady $9.92 per share for fiscal 2025, positioning MS for potential outperformance.
Wall Street peers note record $4.3B in equities activity, highlighting MS's strong positioning in a high-valuation environment.

Sentiment:

🐃Bullish

Bank of America CEO Fuels Optimism with Bullish 2026 Economic Outlook and Strong Q4 Beat.

Q4 revenue hit $28.5 billion, beating expectations by over $500 million, powered by 10% net interest income surge from higher deposits, loans, and global markets activity.
Consumer resilience shines: Debit and credit card spending jumped 6% to $255 billion, with past-due credit card balances improving to 1.27%, easing credit quality fears.
Moynihan ups 2026 GDP view to 2.8% from 2.6%, citing solid bank earnings and early-year spending trends; Goldman Sachs hikes price target to $67 with Buy rating.

Sentiment:

🐃Bullish

Morgan Stanley Earns Zacks 'Strong Buy' Upgrade on Surging Earnings Optimism

Zacks Consensus Estimate for 2025 jumped 8.3% over the past three months, placing MS in the top 5% of stocks for earnings revision trends.
The upgrade signals improving fundamentals, with expectations of steady $9.92 per share for fiscal 2025, positioning MS for potential outperformance.
Wall Street peers note record $4.3B in equities activity, highlighting MS's strong positioning in a high-valuation environment.

Sentiment:

🐃Bullish

Investment Analysis

Bank of America

BAC

Pros

Bank of America’s investment banking fees showed a decent performance with a mid-single-digit CAGR target, supported by increased deal-making activity in 2025.
The stock trades at a discount with a price-to-tangible book ratio of 1.94X compared to the industry average of 3.19X, suggesting relative valuation appeal.
Earnings estimates for 2025 and 2026 indicate expected growth of approximately 15.6% and 14.6% respectively, with a consensus rating of moderate buy from analysts.

Considerations

Asset quality has been deteriorating due to a worsening macroeconomic outlook, with provisions and net charge-offs rising significantly over recent years and continuing in 2025.
The company faces risks of sustained high interest rates negatively impacting borrowers’ credit profiles, which may keep asset quality subdued.
Despite a 21.2% share price gain in 2025, the stock has underperformed broader markets and key peers like JPMorgan and Citigroup.

Morgan Stanley

MS

Pros

Morgan Stanley reported strong earnings that beat Wall Street expectations, reflecting solid fundamentals despite market uncertainty.
The firm benefits from a diversified capital markets and wealth management business that supports stable revenue streams and growth opportunities.
Morgan Stanley’s stock has demonstrated positive momentum and investor sentiment, supported by strong performance in advisory and trading businesses.

Considerations

Morgan Stanley operates in a highly competitive financial sector with execution risks inherent in investment banking and wealth management service segments.
Exposure to capital markets volatility introduces earnings cyclicality, which could be impacted by adverse market or macroeconomic conditions.
Price performance and fundamental metrics face comparison challenges as the firm competes closely with other major banks showing varied risk-reward profiles.

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