ALLY
Ally Financial Inc.
ALLY has the edge over MS overall, supported by stronger valuation and stronger fundamentals.
MS
Morgan Stanley
MS has slightly lower modeled downside risk, despite its lower overall score.
ALLY Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Strong | |
| N/A | |
| N/A |
ALLY's profitability is currently strong, and its revenue is stable. Free cash flow and net leverage aren't meaningful measures for financial services companies like ALLY.
MS Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| N/A | |
| N/A |
MS's revenue and profitability are currently healthy. Free cash flow and net leverage aren't meaningful measures for financial services companies like MS.
ALLY PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 5.4x | $23.66 | -38% |
| Forward | 6.5x | $38.00 | — |
| Current | 8.7x | $38.00 | — |
| Fair | 9.4x | $41.09 | +8.1% |
| Expensive | 17x | $75.07 | +98% |
Historical ranges are pointers, not guarantees.
ALLY's PE is in its fair range at 8.7x. If earnings grow as analysts expect, today's price would be 6.5x next year's earnings, in its cheap range.
MS PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 11x | $134 | -29% |
| Fair | 14x | $178 | -5.7% |
| Forward | 14x | $189 | — |
| Current | 15x | $189 | — |
| Expensive | 18x | $223 | +18% |
Historical ranges are pointers, not guarantees.
MS has the edge over ALLY in the historical PE scenario, which offers more potential upside but is not a forecast.
ALLY Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Strong growth | |
| Growth | |
| Strongly improving | |
| Limited | |
| Moderate |
Analysts expect earnings and revenue growth for ALLY, with profitability improving.
MS Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Growth | |
| Growth | |
| Improving | |
| Limited | |
| Moderate |
Analysts expect earnings and revenue growth for MS, with profitability improving.
ALLY Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $5.85 | +34% |
| Q3 2026 | $4.38 | +164% |
| Q2 2026 | $4.26 | +177% |
| Q1 2026 | $4.12 | +203% |
| Q4 2025 | $2.37 | -8.8% |
| Q3 2025 | $1.66 | -33% |
| Q2 2025 | $1.54 | -33% |
| Q1 2025 | $1.36 | -44% |
| Q4 2024 | $2.60 | -13% |
ALLY's earnings per share have fallen from their peak: $4.38 over the past year, against $8.23 in late 2021.
MS Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $13.39 | +6.3% |
| Q3 2026 | $12.60 | +29% |
| Q2 2026 | $12.37 | +40% |
| Q1 2026 | $11.04 | +29% |
| Q4 2025 | $10.21 | +28% |
| Q3 2025 | $9.76 | +48% |
| Q2 2025 | $8.84 | +45% |
| Q1 2025 | $8.53 | +55% |
| Q4 2024 | $7.95 | +53% |
MS has the edge over ALLY on earnings, with more consistent year-over-year improvement.
ALLY Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $2.3B | +7.6% |
| Q2 2026 | $2.3B | +9.8% |
| Q1 2026 | $2.1B | +36% |
| Q4 2025 | $2.1B | +1.5% |
| Q3 2025 | $2.2B | +3.1% |
| Q2 2025 | $2.1B | +4.1% |
| Q1 2025 | $1.5B | -22% |
| Q4 2024 | $2.1B | +1.2% |
ALLY's revenue has grown year over year for six quarters in a row: $2.3B last quarter, up 7.6% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 24% | +0.6 points |
| Q2 2026 | 23% | +2.5 points |
| Q1 2026 | 19% | +38 points |
| Q4 2025 | 18% | +9.8 points |
| Q3 2025 | 24% | +13 points |
| Q2 2025 | 21% | +8.1 points |
| Q1 2025 | -18% | -27 points |
| Q4 2024 | 8.4% | +5.3 points |
ALLY's operating margin was 24% last quarter, up 0.6 points from the same quarter a year ago.
MS Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $20.3B | +12% |
| Q2 2026 | $21.3B | +27% |
| Q1 2026 | $20.6B | +16% |
| Q4 2025 | $17.9B | +10% |
| Q3 2025 | $18.2B | +18% |
| Q2 2025 | $16.8B | +12% |
| Q1 2025 | $17.7B | +17% |
| Q4 2024 | $16.2B | +26% |
MS has the edge over ALLY on sales, with more consistent year-over-year improvement.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 32% | -1.2 points |
| Q2 2026 | 34% | +6.9 points |
| Q1 2026 | 34% | +2.8 points |
| Q4 2025 | 32% | +2 points |
| Q3 2025 | 33% | +5.6 points |
| Q2 2025 | 28% | +0.4 points |
| Q1 2025 | 31% | +2.2 points |
| Q4 2024 | 30% | +14 points |
MS has the edge over ALLY on profitability, with a higher operating margin.
ALLY Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $1.6B | +33% |
| Q2 2026 | $1.4B | +43% |
| Q1 2026 | $1.4B | +46% |
| Q4 2025 | $640M | -33% |
| Q3 2025 | $1.2B | +21% |
| Q2 2025 | $947M | -40% |
| Q1 2025 | $940M | -30% |
| Q4 2024 | $951M | +$968M |
ALLY has the edge over MS on cash generation, producing positive trailing cash flow while its opponent burns cash.
MS Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | -$46B | -$42.7B |
| Q2 2026 | -$2.7B | -123% |
| Q1 2026 | -$7.1B | +$16.9B |
| Q4 2025 | -$2.4B | -120% |
| Q3 2025 | -$3.3B | +$14B |
| Q2 2025 | $11.8B | +368% |
| Q1 2025 | -$24B | -650% |
| Q4 2024 | $11.8B | +$29.6B |
MS's free cash flow was −$58.3B over the past year, against −$3.7B the year before. Free cash flow isn't a meaningful measure for financial services companies like MS.
ALLY Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.9% | -2.9M shares |
| 1 year | -1.8% | -5.7M shares |
| 3 years | +0.8% | +2.4M shares |
| 5 years | -15% | -53.7M shares |
| Available history | -22% | -87.3M shares |
ALLY has the edge over MS on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q3 2026 | $178M |
| Q2 2026 | $148M |
| Q1 2026 | $147M |
| Q4 2025 | $23M |
| Q3 2025 | $1M |
| Q2 2025 | $1M |
| Q1 2025 | $34M |
| Q4 2024 | $7M |
ALLY spent $496M buying back its own shares over the past year, more than ten times what it spent the year before.
MS Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.2% | -3M shares |
| 1 year | -1.5% | -24M shares |
| 3 years | -4.7% | -77M shares |
| 5 years | -14% | -246M shares |
| Available history | -4.5% | -74M shares |
MS has 1.6B diluted shares, down 1.5% from a year ago.
ALLY Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 5.1x | High |
| Q2 2026 | 4.6x | High |
| Q1 2026 | 3.0x | Elevated |
| Q4 2025 | 4.8x | High |
| Q3 2025 | 4.7x | High |
| Q2 2025 | 4.8x | High |
| Q1 2025 | 5.6x | High |
| Q4 2024 | 4.2x | High |
ALLY has the edge over MS on leverage, with a lower net debt burden relative to earnings.
MS Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 7.8x | High |
| Q2 2026 | 7.3x | High |
| Q1 2026 | 8.2x | High |
| Q4 2025 | 8.6x | High |
| Q3 2025 | 8.4x | High |
| Q2 2025 | 8.7x | High |
| Q1 2025 | 8.7x | High |
| Q4 2024 | 7.9x | High |
MS's net debt is about 7.8 years of its operating earnings (EBITDA), down from 8.4 years a year ago. Net leverage isn't a meaningful measure for financial services companies like MS.
ALLY Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 39.2 | Neutral |
| Stochastic | 21.5 | Neutral |
ALLY's weekly RSI is 39 (neutral) and its Stochastic is 21 (neutral).
MS Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 45.0 | Neutral |
| Stochastic | 18.7 | Oversold |
MS's weekly RSI is 45 (neutral) and its Stochastic is 19 (oversold).
ALLY PE vs Financial Services Sector
| Metric | ALLY | Sector median | Relative |
|---|---|---|---|
| PE | 8.7x | 13x | 33% below |
| PE % | 44 | 63 | 19 pts below |
ALLY has the edge over MS on valuation relative to its sector.
MS PE vs Financial Services Sector
| Metric | MS | Sector median | Relative |
|---|---|---|---|
| PE | 15x | 13x | 15% above |
| PE % | 59 | 63 | 4 pts below |
MS is trading at 15x earnings, a 15% premium to the Financial Services sector's median of 13x.
ALLY Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $38.2 | 0.4% below |
| 20 week MA | $41.4 | 8.2% below |
| 50 week MA | $42.1 | 9.8% below |
| 100 week MA | $39.8 | 4.6% below |
| 200 week MA | $36.5 | 4.2% above |
ALLY has fallen below most of its moving averages, though it's still 4.2% above its 200-week average.
MS Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $186.5 | 1.5% above |
| 20 week MA | $203.3 | 6.9% below |
| 50 week MA | $191.9 | 1.4% below |
| 100 week MA | $164.9 | 15% above |
| 200 week MA | $129.3 | 46% above |
MS has the edge over ALLY on trend strength, trading above more of its moving averages.
ALLY Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $30.6 | $34.5 | +13% |
| 2021 | $34.5 | $47.6 | +38% |
| 2022 | $47.6 | $23.9 | -50% |
| 2023 | $23.9 | $34.9 | +46% |
| 2024 | $34.9 | $35.7 | +2.1% |
| 2025 | $35.7 | $46.3 | +30% |
| 2026 YTD | $46.3 | $38.0 | -18% |
ALLY has finished higher in five of the last six years. It's down 18% so far in 2026.
MS Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $51.1 | $68.1 | +33% |
| 2021 | $68.1 | $99.3 | +46% |
| 2022 | $99.3 | $86.1 | -13% |
| 2023 | $86.1 | $93.3 | +8.3% |
| 2024 | $93.3 | $126.8 | +36% |
| 2025 | $126.8 | $181.9 | +43% |
| 2026 YTD | $181.9 | $189.2 | +4% |
MS has the edge over ALLY on returns for 2026, with the stronger performance.