RY vs. MS
RY (Royal Bank of Canada) and MS (Morgan Stanley) are both stocks. Both are in the Financial Services sector — RY in Banks - Diversified, MS in Capital Markets. Over the past 10 years, RY returned 17.18%/yr vs 27.71%/yr for MS. At a 0.47 correlation, their price movements are largely independent.
Performance
RY vs. MS - Performance Comparison
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Returns By Period
In the year-to-date period, RY achieves a 18.68% return, which is significantly lower than MS's 21.88% return. Over the past 10 years, RY has underperformed MS with an annualized return of 17.18%, while MS has yielded a comparatively higher 27.71% annualized return.
RY
- 1D
- 0.14%
- 1M
- 8.80%
- YTD
- 18.68%
- 6M
- 21.99%
- 1Y
- 60.93%
- 3Y*
- 33.55%
- 5Y*
- 18.33%
- 10Y*
- 17.18%
MS
- 1D
- 0.65%
- 1M
- 11.18%
- YTD
- 21.88%
- 6M
- 21.28%
- 1Y
- 69.28%
- 3Y*
- 38.69%
- 5Y*
- 22.26%
- 10Y*
- 27.71%
RY vs. MS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
RY Royal Bank of Canada | 18.68% | 46.29% | 23.80% | 12.72% | -8.00% | 34.11% | 8.42% | 20.17% | -12.88% | 24.95% |
MS Morgan Stanley | 21.88% | 45.16% | 39.73% | 13.93% | -10.34% | 46.65% | 38.09% | 32.67% | -22.76% | 26.61% |
Correlation
The correlation between RY and MS is 0.50, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.50 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.54 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.60 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.59 |
Correlation (All Time) Calculated using the full available price history since Oct 16, 1995 | 0.47 |
The correlation between RY and MS shifts across timeframes, from 0.47 (all time) to 0.60 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
RY:
$205.02B
MS:
$340.97B
RY:
CA$18.17
MS:
$11.41
RY:
15.35
MS:
18.75
RY:
2.22
MS:
1.76
RY:
2.45
MS:
2.84
RY:
2.21
MS:
3.26
RY:
CA$138.99B
MS:
$120.22B
RY:
CA$65.64B
MS:
$69.72B
RY:
CA$30.01B
MS:
$27.21B
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Return for Risk
RY vs. MS — Risk / Return Rank
RY
MS
RY vs. MS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Royal Bank of Canada (RY) and Morgan Stanley (MS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| RY | MS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.39 | ||
| Sortino ratioReturn per unit of downside risk | +2.51 | ||
| Omega ratioGain probability vs. loss probability | 1.70 | 1.43 | +0.27 |
| Calmar ratioReturn relative to maximum drawdown | 5.97 | 3.53 | +2.44 |
| Martin ratioReturn relative to average drawdown | 22.22 | 11.65 | +10.56 |
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Drawdowns
RY vs. MS - Drawdown Comparison
The maximum RY drawdown since its inception was -62.90%, smaller than the maximum MS drawdown of -88.12%. Use the drawdown chart below to compare losses from any high point for RY and MS.
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Drawdown Indicators
| RY | MS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -62.90% | -88.12% | +25.22% |
Max Drawdown (1Y)Largest decline over 1 year | -10.04% | -18.83% | +8.79% |
Max Drawdown (3Y)Largest decline over 3 years | -19.88% | -29.24% | +9.36% |
Max Drawdown (5Y)Largest decline over 5 years | -28.36% | -32.38% | +4.02% |
Max Drawdown (10Y)Largest decline over 10 years | -39.95% | -51.33% | +11.38% |
Current DrawdownCurrent decline from peak | 0.00% | -1.94% | +1.94% |
Average DrawdownAverage peak-to-trough decline | -9.32% | -33.69% | +24.37% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.69% | 5.70% | -3.01% |
Volatility
RY vs. MS - Volatility Comparison
The current volatility for Royal Bank of Canada (RY) is 4.01%, while Morgan Stanley (MS) has a volatility of 8.62%. This indicates that RY experiences smaller price fluctuations and is considered to be less risky than MS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| RY | MS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.01% | 8.62% | -4.61% |
Volatility (6M)Calculated over the trailing 6-month period | 11.34% | 21.46% | -10.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.10% | 25.81% | -10.71% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.00% | 28.75% | -10.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.76% | 31.51% | -11.75% |
Dividends
RY vs. MS - Dividend Comparison
RY's dividend yield for the trailing twelve months is around 2.32%, more than MS's 1.87% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MS Morgan Stanley | 1.87% | 2.17% | 2.82% | 3.49% | 3.47% | 2.14% | 2.04% | 2.54% | 2.77% | 1.72% | 1.66% | 1.73% |
RY Royal Bank of Canada | 2.32% | 2.54% | 3.39% | 4.29% | 4.07% | 3.24% | 3.88% | 3.88% | 4.27% | 3.22% | 3.95% | 5.41% |
Financials
RY vs. MS - Financials Comparison
This section allows you to compare key financial metrics between Royal Bank of Canada and Morgan Stanley. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
RY vs. MS - Profitability Comparison
RY - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Royal Bank of Canada reported a gross profit of 16.51B and revenue of 33.93B. Therefore, the gross margin over that period was 48.7%.
MS - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Morgan Stanley reported a gross profit of 20.48B and revenue of 33.15B. Therefore, the gross margin over that period was 61.8%.
RY - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Royal Bank of Canada reported an operating income of 7.10B and revenue of 33.93B, resulting in an operating margin of 20.9%.
MS - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Morgan Stanley reported an operating income of 7.01B and revenue of 33.15B, resulting in an operating margin of 21.2%.
RY - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Royal Bank of Canada reported a net income of 5.51B and revenue of 33.93B, resulting in a net margin of 16.2%.
MS - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Morgan Stanley reported a net income of 5.64B and revenue of 33.15B, resulting in a net margin of 17.0%.
Frequently Asked Questions
RY and MS have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MS has higher volatility (8.62%) compared to RY (4.01%). In terms of maximum drawdown, RY dropped -62.90% vs MS's -88.12%.
RY currently has the higher Sharpe Ratio (3.97 vs 2.58), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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