Wells Fargo vs Morgan Stanley

This page compares Wells Fargo and Morgan Stanley, outlining their business models, financial performance, and market context to help readers understand the landscape. It presents key considerations for each firm, framed in neutral terms and accessible language, without guidance or recommendations. Educational content, not financial advice.

This page compares Wells Fargo and Morgan Stanley, outlining their business models, financial performance, and market context to help readers understand the landscape. It presents key considerations f...

Comparison Snapshot

Key Financial Metrics

WFC

Metric

MS

$268.93B

Market Cap

$283.36B

5.18%

Potential Profit

-5.84%

Buy

Analyst Rating

Buy

Why It's Moving

Wells Fargo gears up for explosive 2026 growth after Fed lifts asset cap, fueling NII surge to $50B.

Wells Fargo targets $50B in 2026 net interest income, powered by asset cap lift, loan growth, and rising markets revenue for stronger core earnings.
Bank's M&A advisory ranking soared to ninth globally with $436B in deals, including Netflix-Warner Bros. and Union Pacific-Norfolk Southern, eyeing top-five investment banking status.
Wall Street lifts price targets amid durable tailwinds like balance sheet growth and dovish Fed outlook, with shares up 34% this year beating sector averages.

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

Wells Fargo gears up for explosive 2026 growth after Fed lifts asset cap, fueling NII surge to $50B.

Wells Fargo targets $50B in 2026 net interest income, powered by asset cap lift, loan growth, and rising markets revenue for stronger core earnings.
Bank's M&A advisory ranking soared to ninth globally with $436B in deals, including Netflix-Warner Bros. and Union Pacific-Norfolk Southern, eyeing top-five investment banking status.
Wall Street lifts price targets amid durable tailwinds like balance sheet growth and dovish Fed outlook, with shares up 34% this year beating sector averages.

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

Wells Fargo

WFC

Pros

Wells Fargo reported strong third quarter 2025 net income of $5.6 billion, up from $5.1 billion year-over-year, showing improving profitability.
The bank's return on equity (ROE) improved to 12.8%, reflecting enhanced operational efficiency and capital utilisation.
Removal of the regulatory asset cap in June 2025 provides Wells Fargo increased capacity for balance sheet growth and lending activities.

Considerations

Wells Fargo's stock is forecasted to decline slightly by about 4.8% by year-end 2025, indicating limited short-term upside.
Morgan Stanley downgraded Wells Fargo's outlook from Overweight to a lower rating in September 2025, signaling investor caution.
Wells Fargo faces moderate share price volatility and a neutral sentiment environment, with a current Fear & Greed index indicating investor hesitation.

Morgan Stanley

MS

Pros

Morgan Stanley maintains a strong competitive position as a diversified financial services firm with robust capital markets and wealth management businesses.
The company has demonstrated consistent execution capabilities with positive analyst sentiment and an AI-driven score advantage compared to Wells Fargo.
Morgan Stanley benefits from diversified revenue streams that reduce dependency on interest rate cycles and enhance stability.

Considerations

Morgan Stanley's valuation could be pressured by macroeconomic uncertainties and market volatility impacting capital markets activity.
The firm faces ongoing regulatory and compliance risks inherent in global financial services businesses.
Growth in some segments may be constrained by competitive pressures from both traditional banks and fintech disruptors.

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