SCHW vs. MS

Last updated Jun 3, 2026

SCHW (The Charles Schwab Corporation) and MS (Morgan Stanley) are both stocks. Both operate in the Capital Markets industry within the Financial Services sector. Over the past 10 years, SCHW returned 13.04%/yr vs 26.80%/yr for MS. A 0.60 correlation means they provide meaningful diversification when combined.

Performance

SCHW vs. MS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in The Charles Schwab Corporation (SCHW) and Morgan Stanley (MS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHW achieves a -11.70% return, which is significantly lower than MS's 22.42% return. Over the past 10 years, SCHW has underperformed MS with an annualized return of 13.04%, while MS has yielded a comparatively higher 26.80% annualized return.

SCHW

• 1D: -1.27%
• 1M: -3.95%
• YTD: -11.70%
• 6M: -4.18%
• 1Y: 0.69%
• 3Y*: 18.90%
• 5Y*: 4.26%
• 10Y*: 13.04%

MS

• 1D: 1.88%
• 1M: 13.05%
• YTD: 22.42%
• 6M: 28.53%
• 1Y: 71.47%
• 3Y*: 41.02%
• 5Y*: 22.02%
• 10Y*: 26.80%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SCHW vs. MS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHW The Charles Schwab Corporation	-11.70%	36.65%	9.17%	-15.97%	0.11%	60.23%	13.57%	16.38%	-18.43%	31.15%
MS Morgan Stanley	22.42%	45.16%	39.73%	13.93%	-10.34%	46.65%	38.09%	32.67%	-22.76%	26.61%

Correlation

The correlation between SCHW and MS is 0.56, 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	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Feb 24, 1993	0.60

The correlation between SCHW and MS shifts across timeframes, from 0.56 (1 year) to 0.68 (10 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap SCHW : $153.49B MS : $342.46B
EPS SCHW : $5.26 MS : $11.41
PE Ratio SCHW : 16.65 MS : 18.83
PEG Ratio SCHW : 0.95 MS : 1.77
PS Ratio SCHW : 6.49 MS : 2.85
PB Ratio SCHW : 56.85K MS : 3.28
Total Revenue (TTM) SCHW : $24.17B MS : $120.22B
Gross Profit (TTM) SCHW : $18.86B MS : $69.72B
EBITDA (TTM) SCHW : $13.11B MS : $27.21B

Return for Risk

SCHW vs. MS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SCHW

SCHW Risk / Return Rank: 38
SCHW Sharpe Ratio Rank: 41
SCHW Sortino Ratio Rank: 34
SCHW Omega Ratio Rank: 34
SCHW Calmar Ratio Rank: 40
SCHW Martin Ratio Rank: 41

MS

MS Risk / Return Rank: 91
MS Sharpe Ratio Rank: 93
MS Sortino Ratio Rank: 91
MS Omega Ratio Rank: 92
MS Calmar Ratio Rank: 86
MS Martin Ratio Rank: 90

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SCHW vs. MS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The Charles Schwab Corporation (SCHW) 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.

	SCHW	MS	Difference
Sharpe ratio Return per unit of total volatility	0.03	2.87	-2.84
Sortino ratio Return per unit of downside risk	0.19	3.47	-3.27
Omega ratio Gain probability vs. loss probability	1.03	1.48	-0.45
Calmar ratio Return relative to maximum drawdown	0.02	3.82	-3.80
Martin ratio Return relative to average drawdown	0.05	12.69	-12.63
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCHW vs. MS - Sharpe Ratio Comparison

The current SCHW Sharpe Ratio is 0.03, which is lower than the MS Sharpe Ratio of 2.87. The chart below compares the historical Sharpe Ratios of SCHW and MS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SCHW	MS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.03	2.87	-2.84
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.13	0.77	-0.64
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.39	0.85	-0.46
Sharpe Ratio (All Time) Calculated using the full available price history	0.42	0.29	+0.13

Drawdowns

SCHW vs. MS - Drawdown Comparison

The maximum SCHW drawdown since its inception was -86.79%, roughly equal to the maximum MS drawdown of -88.12%. Use the drawdown chart below to compare losses from any high point for SCHW and MS.

Drawdown Indicators

	SCHW	MS	Difference
Max Drawdown Largest peak-to-trough decline	-86.79%	-88.12%	+1.33%
Max Drawdown (1Y) Largest decline over 1 year	-19.83%	-18.83%	-1.00%
Max Drawdown (3Y) Largest decline over 3 years	-27.11%	-29.24%	+2.13%
Max Drawdown (5Y) Largest decline over 5 years	-49.70%	-32.38%	-17.32%
Max Drawdown (10Y) Largest decline over 10 years	-51.08%	-51.33%	+0.25%
Current Drawdown Current decline from peak	-17.71%	0.00%	-17.71%
Average Drawdown Average peak-to-trough decline	-35.55%	-33.72%	-1.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.96%	5.67%	+2.29%

Volatility

SCHW vs. MS - Volatility Comparison

The Charles Schwab Corporation (SCHW) has a higher volatility of 7.95% compared to Morgan Stanley (MS) at 6.58%. This indicates that SCHW's price experiences larger fluctuations and is considered to be riskier than MS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHW	MS	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.95%	6.58%	+1.37%
Volatility (6M) Calculated over the trailing 6-month period	19.70%	20.69%	-0.99%
Volatility (1Y) Calculated over the trailing 1-year period	23.92%	25.07%	-1.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.24%	28.63%	+3.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.42%	31.48%	+1.94%

Dividends

SCHW vs. MS - Dividend Comparison

SCHW's dividend yield for the trailing twelve months is around 1.35%, less than MS's 1.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MS Morgan Stanley	1.86%	2.17%	2.82%	3.49%	3.47%	2.14%	2.04%	2.54%	2.77%	1.72%	1.66%	1.73%
SCHW The Charles Schwab Corporation	1.35%	1.08%	1.35%	1.45%	1.01%	0.86%	1.36%	1.43%	1.11%	0.62%	0.68%	0.73%

Financials

SCHW vs. MS - Profitability Comparison

The chart below illustrates the profitability comparison between The Charles Schwab Corporation and Morgan Stanley over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

SCHW - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, The Charles Schwab Corporation reported a gross profit of 1.03B and revenue of 3.14B. Therefore, the gross margin over that period was 32.7%.

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%.

SCHW - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, The Charles Schwab Corporation reported an operating income of -730.00M and revenue of 3.14B, resulting in an operating margin of -23.2%.

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%.

SCHW - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, The Charles Schwab Corporation reported a net income of 2.48B and revenue of 3.14B, resulting in a net margin of 78.9%.

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

Can I hold both SCHW and MS in my portfolio?

SCHW and MS have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHW or MS?

SCHW has higher volatility (7.95%) compared to MS (6.58%). In terms of maximum drawdown, SCHW dropped -86.79% vs MS's -88.12%.

Which has better risk-adjusted returns?

MS currently has the higher Sharpe Ratio (2.87 vs 0.03), 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.