MS' Wealth & Asset Management Moat: A Recurring Revenue Engine

Morgan Stanley’s MS wealth and asset management push is more than a diversification story. It’s the strategic shift that has made the company less dependent on the boom-and-bust rhythm of dealmaking and trading.

In 2025, that tilt was visible in the numbers. The wealth and asset management businesses’ aggregate contribution to total net revenues jumped to 54% in 2025 from 26% in 2010. 

That mix matters because wealth and asset management are built on recurring fee streams (advisory fees, asset-based fees and managed solutions) that tend to be steadier than transaction-heavy investment banking. While market levels influence asset-based fees, the underlying client relationships are typically “stickier,” anchored by multi-product needs: portfolios, planning, lending and cash management.

Morgan Stanley has reinforced that moat through acquisitions designed to broaden distribution and deepen client engagement. The purchases of E*TRADE and Eaton Vance accelerated its move into scaled wealth channels and investment solutions. It also built out workplace wealth via Solium (rebranded as Shareworks by Morgan Stanley), expanding its reach with corporate stock-plan clients. More recently, Morgan Stanley’s buyout of EquityZen has expanded its access to private-market liquidity and investments for clients. 

The compounding engine is asset growth. By year-end 2025, total client assets across Wealth and Investment Management reached $9.3 trillion, supported by $356 billion of net new assets, keeping the company within sight of its long-stated $10 trillion ambition.

Where Do Morgan Stanley’s Peers Stand?

Two close peers of Morgan Stanley are JPMorgan JPM and Goldman Sachs GS.

JPMorgan’s Asset & Wealth Management (AWM) segment is a steadier, fee-led profit engine inside the bank, spanning asset management and the private bank. In the fourth quarter of 2025, AWM net revenues were $6.5 billion (up 13% year over year), resulting in net income of $1.8 billion. As of Dec. 31, 2025, JPMorgan’s assets under management (AUM) hit $4.8 trillion and client assets touched $7.1 trillion.

Goldman’s Asset & Wealth Management (AWM) division is its annuity-like counterweight to trading cycles, driven by management fees, private banking and alternatives. In fourth-quarter 2025, AWM net revenues were $4.72 billion. As of Dec. 31, 2025, Goldman’s assets under supervision (AUS) were $3.61 trillion, including $2.71 trillion of long-term AUS.

Morgan Stanley’s Price Performance, Valuation and Estimates

Morgan Stanley shares have gained 28% over the past six months.

Six-Month Price Performance
 

From a valuation standpoint, MS trades at a 12-month trailing price-to-tangible book (P/TB) of 3.69X, above the industry average. 

P/TB Ratio
 

The Zacks Consensus Estimate for Morgan Stanley’s 2026 earnings suggests a 8.4% rise on a year-over-year basis, while 2027 earnings are expected to grow at a rate of 7.1%. In the past seven days, earnings estimates for 2026 and 2027 have moved upward.

Earnings Estimates Trend
 

MS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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