Morgan Stanley (MS) vs Nomura Holdings Inc ADR (NMR)

Morgan Stanley and Nomura Holdings Inc ADR are both Capital Markets companies. Morgan Stanley is the larger, with a market value of $309.4B against $28.6B — 10.8× the size. Nomura Holdings Inc ADR trades at the lower P/E: 10.3× against 15.7×. Morgan Stanley grew revenue faster over the last twelve months: 14.0% against 9.61%. Morgan Stanley has the higher net margin (15.2% vs 8.90%) and the higher return on invested capital (123.3% vs 0.00%). Both pay a dividend; Morgan Stanley yields more (4.12% vs 2.73%). Across the 21 metrics below, Morgan Stanley leads on 11 and Nomura Holdings Inc ADR on 10.

Valuation

Metric MS NMR Capital Markets median
P/E 15.68 10.27 15.78
P/S 2.37 0.89 2.32
P/B 2.83 1.17 1.89
Price to free cash flow n/m 5.49 6.25
EV/EBITDA 2.79 n/m 8.87
EV/Sales 1.76 (3.26) 2.28
Earnings yield 6.38% 9.74% (3.77%)
Free cash flow yield (6.09%) 18.20% (1.49%)

Profitability

Metric MS NMR Capital Markets median
Gross margin 96.13% 95.73% 62.80%
Operating margin 59.71% 73.13% 0.00%
Net margin 15.18% 8.90% (0.55%)
Free cash flow margin (14.43%) 0.00% 0.00%
Return on equity 18.87% 11.83% 0.00%
Return on assets 1.29% 0.71% 0.00%
Return on invested capital 123.28% 0.00% 0.00%

Growth

Metric MS NMR Capital Markets median
Revenue growth (TTM) 13.96% 9.61% 21.02%
EPS growth (last fiscal year) 28.43% 8.22% —
Revenue growth, 5-year CAGR 17.86% 15.62% 18.16%
Net income growth, 5-year CAGR 9.13% 10.68% 0.00%

Health

Metric MS NMR Capital Markets median
Debt to equity 3.34 8.06 0.08
Current ratio 0.79 2.00 1.51
Net debt to EBITDA (0.46) 1.52 (0.24)

Dividend

Metric MS NMR Capital Markets median
Dividend yield 4.12% 2.73% 2.20%
Payout ratio 0.54 0.00 0.00

Size

Metric MS NMR Capital Markets median
Market cap 309.40b 28.55b 724.58m

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