Quick verdict: APLD vs MS in 2026

APLD, a high-growth technology player, presents a compelling case for growth-oriented investors with its superior revenue growth and unanimous analyst buy ratings. Morgan Stanley, a financial services giant, offers a more established, profitable, and traditionally valued investment, excelling in margins and having a less negative free cash flow yield. While APLD boasts higher potential upside according to analysts, MS shows greater financial stability and a clearer path to profitability. Not investment advice.

APLD vs MS: key metrics side by side

Full side-by-side comparison of APLD and MS across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-04.

APLD vs MS valuation comparison

Comparing the APLD vs MS valuation in 2026 reveals stark differences reflecting their distinct business models and stages of development. Applied Digital Corporation (APLD) currently trades at a P/E ratio of -50.56x, indicating it is not yet profitable. Its Price-to-Book (P/B) ratio stands at 5.96x. The Discounted Cash Flow (DCF) model suggests a deeply negative upside of -148.1%, further emphasizing the market’s current skepticism about its intrinsic value based on near-term cash flows. This valuation profile is typical of a high-growth company in an early, capital-intensive phase, where profitability is still a future prospect.

In contrast, Morgan Stanley (MS) exhibits a more mature and stable valuation. With a P/E ratio of 16.42x, MS is clearly profitable and trades at a reasonable multiple for a financial institution. Its P/B ratio is a more conservative 2.68x, suggesting a solid backing by tangible assets. While its DCF also shows a negative upside at -81.8%, this is significantly less pronounced than APLD’s, indicating a relatively healthier outlook for future cash generation. For investors prioritizing traditional valuation metrics and established profitability, MS appears to be the cheaper and less speculative option when evaluating APLD vs MS valuation.

APLD vs MS growth comparison

When examining APLD vs MS growth in 2026, Applied Digital Corporation stands out with remarkable top-line expansion. APLD reported an impressive revenue growth of +57.7% year-over-year, showcasing strong momentum in its segment. This high growth rate positions APLD as a compelling choice for investors seeking aggressive expansion. Despite this rapid revenue increase, APLD’s profitability metrics, such as its net margin of -52.41% and EBITDA margin of -11.09%, indicate that it is still investing heavily for growth and has not yet achieved economies of scale that translate into positive earnings.

Morgan Stanley, operating in a mature financial services industry, demonstrates solid yet more modest growth. MS recorded revenue growth of +11.5% year-over-year, which is respectable for a company of its size and sector. Unlike APLD, Morgan Stanley consistently delivers strong profitability, with a net margin of 15.13% and an EBITDA margin of 22.64%. While APLD clearly possesses stronger revenue momentum and growth potential in its specialized field, MS offers a more balanced profile of consistent growth paired with robust profitability. Investors must weigh the potential for explosive growth with APLD against the stability and proven profitability of MS in their search for which stock to buy.

APLD vs MS profitability

In terms of APLD vs MS profitability, Morgan Stanley demonstrates a clear and substantial advantage. MS boasts a healthy net margin of 15.13% and an EBITDA margin of 22.64%, reflecting its efficient operations and strong financial position within the highly competitive financial services industry. These positive margins indicate that Morgan Stanley effectively converts a significant portion of its revenue into profit and generates substantial earnings before interest, taxes, depreciation, and amortization. Furthermore, while its Free Cash Flow (FCF) yield is negative at -5.93%, this is considerably better than APLD’s, suggesting a more controlled cash burn and better operational cash generation.

Conversely, Applied Digital Corporation faces significant profitability challenges as of 2026-05-04. APLD reported a stark net margin of -52.41% and an EBITDA margin of -11.09%. These negative figures highlight that the company is currently operating at a loss, prioritizing growth and infrastructure development over immediate profitability. Its FCF yield is also deeply negative at -18.28%, indicating a substantial cash outflow from operations and investments. Both companies show “N/A%” for Return on Equity (ROE), which means this metric cannot be used for direct comparison. Ultimately, for investors focused on current financial health and reliable earnings, Morgan Stanley is the far more profitable entity, generating significantly more cash and maintaining superior margins compared to APLD.

Analyst ratings: APLD vs MS

The analyst ratings for APLD vs MS in 2026 present a compelling contrast in market sentiment. Applied Digital Corporation (APLD) receives overwhelming support from the analyst community, with 100.0% of the 13 analysts covering the stock issuing a “Buy” rating. This unanimous consensus reflects strong confidence in APLD’s future prospects, despite its current unprofitability. The average analyst price target for APLD is $61, representing a substantial potential upside of +75.9% from its current price of $34.67. This indicates a high level of optimism regarding its growth trajectory and future value realization.

Morgan Stanley (MS), a much larger and more established firm, also garners a “Buy” consensus, though with less unanimity. Out of 52 analysts, 53.8% recommend buying MS stock, reflecting a generally positive but more diversified view. The average price target for MS is $205.75, which offers a more modest but still positive upside of +8.2% from its current price of $190.105. While analysts generally favor both, APLD clearly stands out as the analysts’ preferred pick for potential significant capital appreciation, based on the higher percentage of buy ratings and the much larger implied price target upside when considering APLD vs MS.

Should I buy APLD or MS stock in 2026?

Deciding whether should I buy APLD or MS stock in 2026 hinges on an investor’s individual risk tolerance and investment objectives. For growth-oriented investors seeking high potential returns and willing to accept higher risk, Applied Digital Corporation (APLD) might be the more appealing option. With a revenue growth rate of +57.7% and a unanimous “Buy” rating from analysts projecting a +75.9% upside, APLD demonstrates strong momentum and significant future growth potential in its developing market. However, its negative P/E ratio, negative margins, and deeply negative FCF yield signal that it is an investment focused on future promises rather than current profitability.

Conversely, for value investors prioritizing stability, consistent profitability, and a more traditional valuation, Morgan Stanley (MS) stands out. MS offers a positive P/E ratio of 16.42x, healthy net margins of 15.13%, and a less negative DCF upside, indicating a robust and mature business. While its growth is more modest at +11.5% year-over-year, it provides a solid foundation without the speculative elements of APLD. Its lower P/B ratio of 2.68x compared to APLD’s 5.96x also suggests a more conservative valuation relative to its assets.

When considering income, Morgan Stanley is the clear, albeit minor, winner, offering a dividend yield of 0.02% compared to APLD’s 0%. Neither stock is a significant income play, but MS offers a token return. Ultimately, APLD is for investors betting on aggressive future expansion in an evolving tech landscape, while MS is for those seeking a well-established, profitable financial services leader. This is not investment advice, and investors should conduct thorough due diligence tailored to their financial situation.

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FAQ: APLD vs MS