Morgan Stanley Return On Equity vs. Return On Asset
| MS-PP Preferred Stock | 26.09 0.06 0.23% |
For Morgan Stanley profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Morgan Stanley to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Morgan Stanley utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Morgan Stanley's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Morgan Stanley over time as well as its relative position and ranking within its peers.
Morgan |
Morgan Stanley Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Morgan Stanley's current stock value. Our valuation model uses many indicators to compare Morgan Stanley value to that of its competitors to determine the firm's financial worth. Morgan Stanley is regarded fourth in return on equity category among its peers. It also is regarded fourth in return on asset category among its peers reporting about 0.10 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Morgan Stanley is roughly 9.92 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Morgan Stanley's earnings, one of the primary drivers of an investment's value.Morgan Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Morgan Stanley |
| = | 0.11 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Morgan Stanley |
| = | 0.0108 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Morgan Return On Asset Comparison
Morgan Stanley is currently under evaluation in return on asset category among its peers.
Morgan Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Morgan Stanley. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Morgan Stanley position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Morgan Stanley's important profitability drivers and their relationship over time.
Use Morgan Stanley in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Morgan Stanley position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Morgan Stanley will appreciate offsetting losses from the drop in the long position's value.Morgan Stanley Pair Trading
Morgan Stanley Pair Trading Analysis
The ability to find closely correlated positions to Morgan Stanley could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Morgan Stanley when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Morgan Stanley - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Morgan Stanley to buy it.
The correlation of Morgan Stanley is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Morgan Stanley moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Morgan Stanley moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Morgan Stanley can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Morgan Stanley position
In addition to having Morgan Stanley in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Morgan Preferred Stock Analysis
When running Morgan Stanley's price analysis, check to measure Morgan Stanley's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Morgan Stanley is operating at the current time. Most of Morgan Stanley's value examination focuses on studying past and present price action to predict the probability of Morgan Stanley's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Morgan Stanley's price. Additionally, you may evaluate how the addition of Morgan Stanley to your portfolios can decrease your overall portfolio volatility.