Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company's Institutional Securities segment offers capital raising and financial advisory services, including services related to the underwriting of debt, equity, and other securities, as well as advice on mergers and acquisitions, restructurings, real estate, and project finance. This segment also provides sales and trading services, such as sales, financing, and market-making services in equity securities and fixed income products, including foreign exchange and commodities, as well as prime brokerage services; corporate loans, commercial and residential mortgage lending, and asset-backed lending; financing for equities and commodities customers; loans to municipalities; and investments and research services. Its Wealth Management segment offers various financial services and solutions covering brokerage and investment advisory services, financial and wealth planning services, annuity and insurance products, credit and other lending products, and banking and retirement plan services to individual investors, small-to-medium sized businesses, and institutions. The company's Investment Management segment provides various investment strategies and products comprising equity, fixed income, liquidity, and alternative/other products, as well as managed futures products to a group of clients across institutional and intermediary channels. Morgan Stanley was founded in 1924 and is headquartered in New York, New York.
Business Analysis of Morgan Stanley
The Financial Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Morgan Stanley compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Morgan Stanley to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Morgan Stanley with an interactive chart.
- Revenue Growth: Morgan Stanley reported a revenue growth of -1.5% year-on-year during 2016. Investment Services Industry grew at -6.5% in the same period
- COGS share of Revenues: Morgan Stanley COGS share of Revenues details are not available because either company does not share the data or we do not have it
- R&D share of Revenues: Morgan Stanley R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Morgan Stanley spent 62.6% of its total revenues on Sales, Marketing, and General Administration (SG&A). Investment Services industry average SG&A spending in the same period was 54.3%
- Inventory share of Revenues: Morgan Stanley Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: As a percentage of revenue, Morgan Stanley invested 550.1% of its total revenues on Accounts Payable (A/P) Investment Services industry average Accounts Payable investment in the same period was 214.5%
- Accounts Receivable share of Revenues: As a percentage of revenue, Morgan Stanley invested 134.2% of its total revenues on Accounts Receivable (A/R). Investment Services industry average Accounts Receivable investment in the same period was 79.0%
- PP&E share of Revenues: Morgan Stanley PP&E share of Revenues details are not available because either company does not share the data or we do not have it
- Intangibles share of Revenues: As a percentage of revenue, Morgan Stanley invested 26.8% of its total revenues on Intangibles. Investment Services industry average Intangibles investment in the same period was 74.6%
- Net Margins: Morgan Stanley Net Margins in the year 2016 were 17.3%. Investment Services industry average Net Margins in the same period were 17.8%
Sector and Industry Association of Morgan Stanley
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
Morgan Stanley is associated with Financials Sector Group, Financial Services Sector, and Investment Services Industry.
Financial Services sector is comprised of the following industries: Investment Services; Consumer Finance; Payment and Transaction Processing Services; Financial News, Research and Data. The definitions for each of the industries is as follows:
- Investment Services industry includes investment banking companies, asset management companies, securities brokers and dealers, online brokers, and security/commodity exchanges.
- Consumer Finance industry includes companies providing credit services and mortgage finance services.
- Payment and Transaction Processing Services industry includes companies providing financial news, research, and data services.
- Financial News, Research and Data industry includes companies providing payments and transaction processing services.
Industry Ranking of Morgan Stanley
With $34.6 billion revenues, Morgan Stanley ranked number 1 of all the companies in the US Investment Services industry. There were a total of 143 public companies in the US Investment Services industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Investment Services industry by revenues during 2016 were:
- Morgan Stanley ($34.6 billion)
- Goldman Sachs ($30.6 billion)
- Bank Of New York Mellon ($15.2 billion)
- INTL FCStone ($14.8 billion)
- Ameriprise Financial ($11.7 billion)
- BlackRock ($11.2 billion)
- State Street ($10.2 billion)
- Charles Schwab ($7.5 billion)
- Franklin Templeton Investments ($6.6 billion)
- Intercontinental Exchange ($6 billion)
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
- Get in touch with us to learn more about Business Model Analysis Framework
- Get free data, charts, and analysis of Morgan Stanleyand its peers on select key performance indicators by clicking the reports provided below