GS vs. MS: Which Stock Is the Better Value Option?

Core Viewpoint - The analysis compares Goldman Sachs (GS) and Morgan Stanley (MS) to determine which stock offers better value for investors at the current time [1] Valuation Metrics - Both GS and MS currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - GS has a forward P/E ratio of 16.88, while MS has a forward P/E of 17.64, suggesting GS may be the more attractive option based on this metric [5] - The PEG ratio for GS is 1.64, compared to MS's PEG ratio of 1.94, indicating GS has a better valuation relative to its expected earnings growth [5] - GS's P/B ratio is 2.17, while MS's P/B ratio is 2.52, further supporting the conclusion that GS is the superior value option [6] - GS has a Value grade of B, whereas MS has a Value grade of D, highlighting the relative undervaluation of GS [6]