FAF
First American Financial Corporation
FAF has a slight 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.
FAF Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Strong | |
| N/A | |
| N/A |
FAF'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 FAF.
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.
FAF PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 7.5x | $53.49 | -17% |
| Current | 9.1x | $64.40 | — |
| Forward | 9.8x | $64.40 | — |
| Fair | 11x | $81.06 | +26% |
| Expensive | 33x | $231 | +259% |
Historical ranges are pointers, not guarantees.
FAF has the edge over MS in the historical PE scenario, which offers more potential upside but is not a forecast.
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's PE is in its fair range at 15x. If earnings grow as analysts expect, today's price would be 14x next year's earnings.
FAF Forward outlook
| Metric | Outlook |
|---|---|
| Deteriorating | |
| Growth | |
| Stable | |
| Stable | |
| Limited | |
| High |
Analysts expect FAF's earnings to grow, with its revenue and profitability holding steady.
MS Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Growth | |
| Growth | |
| Improving | |
| Limited | |
| Moderate |
MS has the edge over FAF on the outlook, with more favorable valuation and revenue expectations.
FAF Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $6.59 | -7.1% |
| Q3 2026 | $7.09 | +52% |
| Q2 2026 | $7.21 | +296% |
| Q1 2026 | $6.50 | +328% |
| Q4 2025 | $6.00 | +376% |
| Q3 2025 | $4.66 | +430% |
| Q2 2025 | $1.82 | -2.2% |
| Q1 2025 | $1.52 | -27% |
| Q4 2024 | $1.26 | -39% |
FAF's earnings per share have fallen from their peak: $7.09 over the past year, against $11.31 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's earnings per share have climbed steadily: $12.60 over the past year, up 29% from the year before, and higher year over year for 10 quarters in a row.
FAF Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $2.1B | +5.3% |
| Q2 2026 | $2.1B | +15% |
| Q1 2026 | $1.8B | +16% |
| Q4 2025 | $2B | +22% |
| Q3 2025 | $2B | +41% |
| Q2 2025 | $1.8B | +14% |
| Q1 2025 | $1.6B | +11% |
| Q4 2024 | $1.7B | +18% |
FAF's revenue has grown year over year for eight quarters in a row: $2.1B last quarter, up 5.3% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 11% | -1.6 points |
| Q2 2026 | 13% | +2.8 points |
| Q1 2026 | 8.8% | +2.7 points |
| Q4 2025 | 14% | +8.1 points |
| Q3 2025 | 12% | +23 points |
| Q2 2025 | 11% | +1.2 points |
| Q1 2025 | 6.1% | +2 points |
| Q4 2024 | 5.9% | +3.2 points |
FAF's operating margin was 11% last quarter, down 1.6 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 FAF on sales, with stronger typical year-over-year growth.
| 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 FAF on profitability, with a higher operating margin.
FAF Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $196.6M | -12% |
| Q2 2026 | $317.4M | +2.6% |
| Q1 2026 | -$32.7M | +$61.8M |
| Q4 2025 | $324.5M | +22% |
| Q3 2025 | $223.1M | +20% |
| Q2 2025 | $309.4M | +47% |
| Q1 2025 | -$94.5M | -637% |
| Q4 2024 | $266.2M | +$366M |
FAF 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.
FAF Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.2% | +200K shares |
| 1 year | +0.1% | +100K shares |
| 3 years | -1% | -1M shares |
| 5 years | -7.3% | -8.2M shares |
| Available history | -9.2% | -10.5M shares |
FAF has 103M diluted shares, about the same as a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | $1.5M |
| Q2 2026 | $20.5M |
| Q1 2026 | $33.5M |
| Q4 2025 | — |
| Q3 2025 | $33.6M |
| Q2 2025 | $60.5M |
| Q1 2025 | $28.2M |
| Q4 2024 | $8.2M |
FAF spent $56M buying back its own shares over the past year, down 57% from 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 the edge over FAF on shareholder dilution, with a more favorable share count trend.
FAF Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -1.5x | Net Cash |
| Q2 2026 | -2.2x | Net Cash |
| Q1 2026 | -2.2x | Net Cash |
| Q4 2025 | -1.3x | Net Cash |
| Q3 2025 | -3.4x | Net Cash |
| Q2 2025 | -4.4x | Net Cash |
| Q1 2025 | -5.0x | Net Cash |
| Q4 2024 | -4.6x | Net Cash |
FAF 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.
FAF Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 44.5 | Neutral |
| Stochastic | 29.9 | Neutral |
FAF's weekly RSI is 44 (neutral) and its Stochastic is 30 (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).
FAF PE vs Financial Services Sector
| Metric | FAF | Sector median | Relative |
|---|---|---|---|
| PE | 9.1x | 13x | 30% below |
| PE % | 32 | 63 | 31 pts below |
FAF 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.
FAF Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $64.4 | 0.1% above |
| 20 week MA | $69.3 | 7% below |
| 50 week MA | $66.8 | 3.5% below |
| 100 week MA | $64.5 | 0.1% below |
| 200 week MA | $61.8 | 4.3% above |
FAF's trend is mixed: it's above two of its five weekly moving averages, and 4.3% 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 FAF on trend strength, trading above more of its moving averages.
FAF Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $57.8 | $51.9 | -10% |
| 2021 | $51.9 | $76.4 | +47% |
| 2022 | $76.4 | $52.4 | -31% |
| 2023 | $52.4 | $64.4 | +23% |
| 2024 | $64.4 | $62.5 | -2.9% |
| 2025 | $62.5 | $61.9 | -1% |
| 2026 YTD | $61.9 | $64.4 | +4% |
FAF has finished lower in four of the last six years. It's up 4% 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 FAF on returns for 2026, with the stronger performance.