GS vs. MS: Which Stock Should Value Investors Buy Now?

Core Viewpoint - Investors in the Financial - Investment Bank sector should consider Goldman Sachs (GS) and Morgan Stanley (MS), with GS appearing more attractive to value investors based on various metrics [1]. Valuation Metrics - GS has a forward P/E ratio of 16.41, while MS has a forward P/E of 16.90 [5]. - The PEG ratio for GS is 1.59, indicating a better expected earnings growth rate compared to MS's PEG ratio of 1.86 [5]. - GS's P/B ratio is 2.08, compared to MS's P/B of 2.4, suggesting GS is more favorably valued in terms of market value versus book value [6]. Earnings Outlook - GS is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]. - GS holds a Zacks Rank of 2 (Buy), while MS has a Zacks Rank of 3 (Hold), indicating a stronger improvement in earnings outlook for GS [3]. Value Grades - Based on the valuation metrics, GS has earned a Value grade of B, whereas MS has received a Value grade of D, highlighting GS's superior value proposition [6].