MS vs NMR: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. MS and NMR share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined MS and NMR exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Morgan Stanley is a global financial services firm founded in 1935 and headquartered in New York City, with offices in 42 countries and more than 80,000 employees. It operates through three segments: Institutional Securities (investment banking, equity and fixed-income trading, prime brokerage, and research), Wealth Management (financial-advisor-led brokerage, investment advisory, lending, and banking services for individuals and families), and Investment Management (equity, fixed income, alternatives, and liquidity strategies for institutions and intermediaries). The firm earns revenue through advisory and underwriting fees, trading gains, and, increasingly, recurring asset-based fees tied to the value of client assets across its wealth and investment management platforms. The current Morgan Stanley took its modern shape through the 1997 merger with Dean Witter Discover and a string of subsequent acquisitions, most notably E*TRADE (2020) and Eaton Vance (2021), which dramatically expanded its self-directed brokerage and asset management capabilities. Ted Pick became Chairman and CEO at the start of 2024, succeeding James Gorman, who had led the firm since 2010 and orchestrated its transformation toward fee-based businesses. Under Pick, the integrated-firm strategy emphasizes cross-selling across all three segments and driving client assets toward fee-based relationships to generate more predictable earnings.

Full MS guide

Nomura Holdings, Inc. is the parent of Japan's largest securities firm, founded in 1925 and organised under a holding company that listed on the NYSE in 2001. Four divisions carry the business as of the year ended March 2026. Wealth Management runs the domestic retail and high-net-worth franchise and produced net revenue of ~JPY 487.9 billion with income before income taxes of ~JPY 204.0 billion. Investment Management houses Nomura Asset Management, an aircraft leasing operation and a stake in American Century Investments, and ended the year with assets under management of ~JPY 136.9 trillion after completing the purchase of Macquarie Group's US and European public asset management business in December 2025. Wholesale, the largest unit at ~JPY 1,162.2 billion of net revenue, covers Global Markets and Investment Banking across Japan, the Americas, EMEA and Asia. Banking, established on April 1, 2025, is the newest and smallest piece at ~JPY 53.9 billion. Group net revenue reached ~JPY 2,167.7 billion for the fiscal year, up ~14.5%, with net income attributable to shareholders of ~JPY 362.1 billion (roughly $13.6 billion and $2.3 billion at ~JPY 159 per US dollar, the Federal Reserve H.10 rate for mid-August 2026).

Full NMR guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• MS drivers: Wealth management as a recurring-revenue engine; Capital-markets cycle recovery.
• NMR drivers: Wealth Management is being rebuilt around recurring fees; Asset management scale after the Macquarie purchase.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: A simultaneous downturn in asset prices and capital-markets activity would pressure both the fee-based wealth revenues and the transaction-dependent Institutional Securities segment at the same time, which is the scenario that most concerns long-term holders. For NMR, wholesale revenue is genuinely cyclical, and a year of record trading results is a poor guide to the next one; Nomura has posted losing years in this division within recent memory.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick MS if you believe its drivers more; NMR if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the MS and NMR guides.

MS. Morgan Stanley's trailing P/E of roughly 19 to 20 times sits modestly above its own 5-year historical average of around 14 to 15 times, reflecting the market's recognition of the firm's successful shift toward more durable, fee-based earnings. The ROTCE of 21.6% for full-year 2025 demonstrates that the integrated-firm model is generating returns well above most peers' cost of equity, though sustaining that level depends on continued strength in both capital markets and wealth inflows. At a forward P/E of approximately 17.6 times, the stock is not priced as a deep-value name, meaning expectations for continued earnings growth are already embedded in the current price.

NMR. All operating figures originate in Japanese yen and are translated here at ~JPY 159 per US dollar (Federal Reserve H.10, mid-August 2026); Nomura itself translated its June 2026 quarter at ~JPY 162.61, the New York noon buying rate on June 30, 2026, so published dollar equivalents vary with the rate chosen. One ADS equals one common share, which keeps the ADR arithmetic simple: the ~$28.6 billion capitalisation is just the Tokyo price converted. Quoted ADR dividend yields of roughly ~2.6% run below the ~3.3% implied by the JPY 51 declaration because ADR distributions arrive net of Japanese withholding tax and are converted at payment-date rates.

Headline figures (approximate, 2026-06-27): MS shows revenue (full year 2025) ~$70.6 billion, net income (full year 2025) ~$13.4 billion (approx., based on ~$10.21 EPS on ~1.58B diluted shares), eps (ttm) ~$11.04, p/e ratio (ttm) ~19-20x; NMR shows net revenue (fy ended march 2026) ~JPY 2,167.7B, up ~14.5% (~$13.6B at ~JPY 159 per USD), net income to shareholders (fy2026) ~JPY 362.1B (~$2.3B), diluted EPS ~JPY 118.99, ROE ~10.1%, latest quarter (ended june 30, 2026) Net revenue ~JPY 686.7B (+31% YoY), pretax ~JPY 211.5B, ROE ~15.4%, market cap ~$28.6B (~JPY 4.55T) at ~$9.81 per ADS, ~2.90B shares outstanding.

MS and NMR are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined MS and NMR exposure against your real portfolio. It is not an investment adviser.