JP Morgan Chase vs. Morgan Stanley vs. Goldman Sachs (2024)

With the stock markets back on an upswing, investors are looking again to take advantage of growing their nest eggs with well-known companies such as Goldman Sachs or Morgan Stanley or JP Morgan Chase & Co., or others that are Goldman Sachs competitors.

JP Morgan, Morgan Stanley, and Goldman Sachs are three of the largest investment banks that have emerged solidly from the crisis and are taking advantage of the favorable economic climate.

This article will compare JP Morgan vs. Morgan Stanley, Morgan Stanley vs. Goldman Sachs, and Goldman Sachs vs. JP Morgan to give you an idea of which company you may want to look to for investment and banking guidance.

Which firm is the best to work with? Should you look to other Morgan Stanley or JP Morgan competitors? Is there a significant Goldman Sachs, JP Morgan, and Morgan Stanley difference?

AdvisoryHQ will delve into all the details you need to know about JP Morgan, Morgan Stanley, and Goldman Sachs to help answer those questions and more.

We will take a look at the business models of each of these three mega-investment banks as well as look at how JP Morgan and Morgan Stanley differ.

Furthermore, we will help you decide between Morgan Stanley vs. JP Morgan, Goldman Sachs vs. Morgan Stanley, and JP Morgan vs. Goldman Sachs so that you can determine which investment bank is best for your own financial needs.

Content– AdvisoryHQ News 2024 Comparison of JP Morgan Chase vs. Morgan Stanley vs. Goldman Sachs

Keep scrolling down to learn more or click one of the links below to be taken directly to any section of this review that is of interest to you.

• What is an Investment Bank?
• Are JP Morgan and Morgan Stanley the Same?
  • About JP Morgan Chase
  • About Morgan Stanley
  • Difference Between JP Morgan and Morgan Stanley
• About Goldman Sachs
• Morgan Stanley vs. JP Morgan Comparison
• Goldman Sachs vs. Morgan Stanley Comparison
• JP Morgan vs. Goldman Sachs Comparison
• Quick Overview of JP Morgan vs Morgan Stanley vs Goldman Sachs
• FAQs | JP Morgan Chase vs. Morgan Stanley vs. Goldman Sachs
• AHQ Conclusion | Goldman Sachs vs JP Morgan vs Morgan Stanley

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Introduction | What Is an Investment Bank?

If you’re looking to invest, you may be wondering how an investment bank like Morgan Stanley or Goldman Sachs, or JP Morgan differs from the bank you use for your checking and savings accounts.

Investment banks act as financial intermediaries and handle all types of complex banking transactions. These can include things like underwriting and being the “middleman” between an investor and securities issuer.

When you’re looking into information about Morgan Stanley or another Morgan Stanley competitor, you may find that they also handle things like mergers and acquisitions and can have consumer-facing small banking divisions in addition to their larger investment banking.

Traditional banks – the ones located more on Main Street than on Wall Street – specialize more in small deposits and commercial loans.

Investment banks, however, are known for facilitating the relationship between those that distribute securities and the individuals, businesses, or corporations that buy them. Goldman Sachs, JP Morgan, and Morgan Stanley are three of the most well-known investment banks.

Many investors usually have to decide between Morgan Stanley or Goldman Sachs or JP Morgan when they purchase expensive securities issued by different companies or are looking for robust investment guidance from a well-established industry leader.

In order to choose the best investment bank, it is important to know the differences between JP Morgan vs. Morgan Stanley, Morgan Stanley vs. Goldman Sachs, and Goldman Sachs vs. JP Morgan.

See Also: Checking vs. Savings Accounts | Everything You Should Know: Savings vs. Checking Account Comparison

Are JP Morgan and Morgan Stanley the Same? | Difference Between JP Morgan and Morgan Stanley

Even though they share similar names, the JP Morgan and Morgan Stanley difference is actually quite profound. Members of the famous Morgan family founded both companies over a century ago.

To fully answer the question, “Are JP Morgan and Morgan Stanley the same?”, we need to take a look at the history that resulted in the forming of these two Goldman Sachs competitors.

In 1933, the U.S. government passed the Glass Steagall Act, requiring retail and investment banks to be different. Thus, the Morgan family divided their company into JP Morgan and Morgan Stanley.

About JP Morgan Chase

In 2000, JP Morgan was purchased by Chase Bank and now operates under the name JPMorgan Chase & Co. Thus, the difference between JP Morgan and Morgan Stanley dates back to the 1930s, and they are two very separate financial entities.

In this century, the financial institution has worked to gain an edge over JP Morgan’s competitors through the use of artificial intelligence and working to acquire millennials via digital channels. It’s also investing heavily in banking technology.

About Morgan Stanley

When we look at JP Morgan vs. Morgan Stanley, it is easy to see why they are so easily confused. Morgan Stanley bank was founded in 1935 when Henry Morgan and Harold Stanley joined up to begin the company. Today, the bank is one of the largest in the world and specializes in institutional securities, investment management, and global wealth management.

In the comparison of Morgan Stanley vs. JP Morgan, the Morgan Stanley Bank works mostly with corporations, governments, and high-net-worth individuals.

Morgan Stanley was at the forefront of the initial public offering (IPO) of tech giant Apple, Inc. and Facebook Inc.Just like the Morgan Stanley competitors, the firm is going after the millennial market and investing in digital initiatives like a cloud content management service.

JP Morgan Chase vs. Morgan Stanley vs. Goldman Sachs | 2024 Comparison

Difference Between JP Morgan and Morgan Stanley | Size & AUM

The wealth management branch of Morgan Stanley is the largest sector of the company. After purchasing Smith Barney from Citigroup back in 2013, Morgan Stanley has become one of the largest wealth management entities in the world.

Are JP Morgan and Morgan Stanley the same when it comes to their assets under management (AUM)?

When comparing JP Morgan vs. Morgan Stanley, JP Morgan has a larger wealth management portfolio. As of of March 2023, Morgan Stanley Wealth Management reported $1.4 trillion AUM and J.P. Morgan Private Bank reported $2.8 trillion AUM.

If we look at JP Morgan vs. Morgan Stanley, after being bought by Chase, JP Morgan Chase has come to be recognized as a leading multinational banking and financial services holding company and currently has a larger AUM than Morgan Stanley.

What’s the difference between JP Morgan and Morgan Stanley in size?

If you’re looking at size based upon overall assets, the JP Morgan and Morgan Stanley differences are flipped as compared to looking at the assets under management.

JP Morgan Chase has the distinction of being the largest U.S. bank by assets, with Morgan Stanley coming in at number 6, and Goldman Sachs at number 5.

So, ultimately, while the JP Morgan and Morgan Stanley differences are mainly in the customers and areas of the financial industry they put the most focus on, they are also considered competitors and offer many of the same services.

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About Goldman Sachs

Goldman Sachs was founded in 1869. Though the firm was hit particularly hard by the economic crisis of 2008, it continues to provide asset management, prime brokerage, and underwriting services to its clients. Furthermore, one thing about Goldman Sachs is that it is an important dealer in the U.S. Treasury security market.

When we compare Goldman Sachs vs. JP Morgan and Goldman Sachs vs. Morgan Stanley, it is interesting that Goldman Sachs used to deal heavily in subprime mortgages and, for that reason, was bailed out by the U.S. government in 2008.

Today, it’s turned an eye to technology and staying competitive in the digital arena through financial products like Marcus, an online bank, Ayco Personal Financial Management, and the financial management app Clarity Money.

When thinking about Goldman Sachs, computer giant Apple might not usually come to mind. Apple Card credit card was developed in partnership with Goldman Sachs. However, as of July 2023 it seems that Goldman Sachs is looking to hand it over to Amex.

Morgan Stanley vs. JP Morgan Comparison

When we look at JP Morgan vs. Morgan Stanley, both banks provide a variety of financial services. JP Morgan Chase offers consumer and community banking and commercial banking while Morgan Stanley focuses more on financial holdings and offers its services to multinational corporations, governments, and high-net-worth individuals.

When reviewing JP Morgan vs. Morgan Stanley, it is important to understand what financial services you are interested in. The biggest difference between JP Morgan and Morgan Stanley is that JP Morgan Chase is a commercial bank, meaning that it has branches, ATM services, and online banking.

When looking at JP Morgan vs. Morgan Stanley, you should choose JP Morgan Chase if you are looking for more local bank services, such as home mortgages, auto finance, educational loans, retirement, and investing.

Though both JP Morgan and Morgan Stanley also offer large-scale investment services, Morgan Stanley mostly caters to corporations, governments, and wealthy individuals. In a head-to-head comparison between Morgan Stanley vs. JP Morgan, Morgan Stanley is best suited for corporations and wealthy individuals.

Both JP Morgan and Morgan Stanley are continually ranked in the top ten of the largest banks in the country.

During the financial crisis of 2008, both JP Morgan and Morgan Stanley were affected. When we compare JP Morgan vs. Morgan Stanley, we see that Morgan Stanley borrowed over $107 billion from the Fed during the crisis, which was considerably more than any other bank.

JP Morgan was also implicated in the crisis and in 2013 was fined over $13 billion for allegedly selling fraudulent mortgage-backed securities. In Morgan Stanley vs. JP Morgan, JP Morgan received a heftier fine.

According to the Federal Reserve, as of March 2023, JP Morgan ranks ahead of both Goldman Sachs and Morgan Stanley, with $2.8 trillion in assets. The JP Morgan and Morgan Stanley difference is quite double, with Morgan Stanley coming in at $1.4 trillion.

Additionally, JPMorgan Chase’s revenue for the twelve-month period ending March 31, 2023, reached $177.093 billion, demonstrating a substantial year-over-year increase of 40.67% while Morgan Stanley revenue for the twelve months ending March 31, 2023 was $53.384 billion, a 9.27% decline year-over-year.

Related: 10 Tips to Finding the Best Bank for a Checking Account

Goldman Sachs vs. Morgan Stanley Comparison

When we look at Morgan Stanley vs. Goldman Sachs, both are mega-investment banks whose main clientele are wealthy individuals and corporations. However, there are fundamental differences when we compare Goldman Sachs vs. Morgan Stanley, especially concerning their business models.

Morgan Stanley tends to be the more conservative and cautious of the two, while Goldman Sachs focuses on upside potential in lending, private equity, and hedge funds.

In recent years, Morgan Stanley has begun to move away from the high risk and high reward financial sector in order to focus more of its energy on money management, which is widely considered to be more conservative and dependable though with less opportunity for quick profits.

When comparing Morgan Stanley vs. Goldman Sachs, it is clear that Morgan Stanley has chosen the more conservative business model.

One of the biggest differences between Goldman Sachs vs. Morgan Stanley can be seen in how they position their business models. Morgan Stanley has chosen to be more reliant on its wealth and asset management business and Goldman Sachs on its investment banking and securities trading segments.

When looking at Morgan Stanley or Goldman Sachs’s profitability, even though Goldman Sachs has lower revenues, their model has helped them be more profitable.

Comparing Goldman Sachs vs. Morgan Stanley’s historical growth, reports about Morgan Stanley’s revenue for the twelve-month period ending March 31, 2023, stood at $53.384 billion, indicating a year-over-year decrease of 9.27%. Morgan Stanley’s revenue for the quarter ending March 31, 2023, amounted to $14.517 billion, indicating a year-over-year decline of 1.92%

On the other hand, reports about Goldman Sachs recorded a revenue of $46.656 billion for the twelve-month period ending March 31, 2023, reflecting a year-over-year decline of 14.5%. As far as the the quarter ending March 31, 2023, Goldman Sachs recorded a revenue of $12.224 billion, reflecting a year-over-year decline of 5.48%.

JP Morgan, Goldman Sachs, or Morgan Stanley?

When looking at Goldman Sachs vs. Morgan Stanley, Morgan Stanley offers a much more precarious investment model that, though cyclical, does offer the possibility of fast earnings. The Morgan Stanley vs. Goldman Sachs comparison is important for those people interested in matching their investment portfolio with the business model that best suits their desire risk/reward balance.

When comparing Morgan Stanley vs. Goldman Sachs, Goldman Sachs is considered to have rebounded from the financial crisis faster than Morgan Stanley or any other bank. An interesting fact about Goldman Sachs is that it posted its largest profit in the summer of 2009, shortly after the financial crisis came to an end.

If you are thinking about whether to invest in Goldman Sachs or Morgan Stanley, the most important thing to consider is what type of investment portfolio defines your finances.

If you are interested in high-risk, high-reward investments, then Goldman Sachs is the best investment bank for you. However, if you are more interested in long-term wealth management, Morgan Stanley is the more attractive option.

After the financial crisis of 2008, the Dodd-Frank Wall Street Reform Act allowed greater regulatory measures by the U.S. government over the financial sector of the economy. The U.S. government didn’t discriminate between Goldman Sachs or Morgan Stanley and forced both companies to reorganize into traditional holding companies.

Thus, the Goldman Sachs vs. Morgan Stanley debate is different today since both have had to scale down following the global economic crisis.

Despite the forced reorganization, the post-crisis rebound between Morgan Stanley vs. Goldman Sachs is telling. Goldman Sachs posted a total net income of $13.4 billion the year after the financial crisis while Morgan Stanley declared an effective loss.

The future is so far looking positive for Goldman Sachs. While Morgan Stanley grew more rapidly between 2016 and 2017, one of the Morgan Stanley competitors that came on strong and outmatched them in 2018 was Goldman Sachs, with an 11.9% year over year growth rate in 2018.

Furthermore, reports suggest that Morgan Stanley is planning to reduce its workforce by approximately 3,000 employees, primarily affecting investment bankers and traders.

According to Bloomberg, the cuts are not expected to impact the wealth management staff at Morgan Stanley. Additionally, there have been indications that the company is contemplating laying off around 7% of its investment banking positions in Asia.

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JP Morgan vs. Goldman Sachs Comparison

When comparing Goldman Sachs vs. JP Morgan, the contrast is only somewhat similar to the JP Morgan vs. Morgan Stanley comparison. While Morgan Stanley doesn’t offer commercial banking services as does JP Morgan, Goldman Sachs has been making an entry into the personal finance market with an online banking platform, Marcus.

In recent years, both companies have benefitted from low-interest rates and certain Fed policies to increase their financial returns. When looking at JP Morgan vs Goldman Sachs, between 2017 and 2021, both companies witnessed a surge in their stock performance, driven by low-interest rates and Federal Reserve policies.

Over the course of five years, JPMorgan shares rose by an impressive 148%, while Goldman Sachs experienced a notable increase of 131%, outperforming the S&P 500 return of 125%.

However, in 2022, both companies encountered a decline in stock prices due to mounting inflation and Federal Reserve interest rate hikes – Goldman Sachs stock fell by 10.2%, and JP Morgan’s stock price concluded the year around 15.6% lower.

Looking ahead to 2024, JPMorgan anticipates a mild to moderate recessionary valuation at most. On the other hand, the Investment Strategy Group within Goldman Sachs Wealth Management foresees a stabilization of inflation, the termination of tightening policies by central banks, and a relatively calmer market compared to the turbulence experienced in the previous year.

About JP Morgan, Goldman Sachs, and Morgan Stanley

When comparing the return on equity between Goldman Sachs vs. JP Morgan, both banks had impressive numbers. As of June 2023, JP Morgan came in on top with 14.27% return on equity while Goldman Sachs posted a 9.01%.

When comparing JP Morgan vs. Goldman Sachs statistically, both are seen to be sending out strong numeric indicators but JP Morgan is definitely on top.

Goldman Sachs reported a net income of $10.020 billion for the twelve-month period ending March 31, 2023, representing a year-over-year decline of 45.16%. Tangible book value per common share Goldman Sachs book value per share for the three months ending March 31, 2023 was $353.00.

JPMorgan Chase’s net income for the twelve-month period ending March 31, 2023, amounted to $40.240 billion, indicating a marginal year-over-year decline of 0.63%, quite a bit more than its competitor.

But looking at JP Morgan vs Goldman Sachs in tangible book value, JPMorgan Chase’s book value per share for the three-month period ending March 31, 2023, stood at $103.71 which is considerably lower than Goldman Sachs.

When comparing Goldman Sachs vs. JP Morgan, both seem to have very good economic indicators, but JP Morgan Chase is obviously ahead.

Read More: How to Find the Best Banks with Free Checking and No Minimum Balance

Quick Overview of JP Morgan vs Morgan Stanley vs Goldman Sachs

JP Morgan vs Morgan Stanley vs Goldman Sachs – Information as of March 2023

FAQs | JP Morgan vs Goldman Sachs vs Morgan Stanley

Question: Is Morgan Stanley the same as JP Morgan?

Answer: No, Morgan Stanley and JP Morgan are distinct and separate financial institutions. While both have the term “Morgan” in their names and have historical connections to the Morgan family, they are independent entities with different business structures and operations.

Question: What’s the difference between Morgan Stanley and JP Morgan?

Answer: While both Morgan Stanley and JPMorgan Chase are significant players in the financial industry, Morgan Stanley is more specialized in investment banking and wealth management, whereas JPMorgan Chase has a diversified business model covering a broader spectrum of financial services.

Question: How is JP Morgan different from other banks?

Answer: JP Morgan stands out among other banks with its diversified financial services, global presence, and leadership in investment banking. As one of the largest and most influential financial institutions, JP Morgan’s extensive reach and commitment to technological innovation contribute to its prominence in the global financial landscape.

Question: JP Morgan vs Morgan Stanley – which is better?

Answer: Determining whether JP Morgan vs Morgan Stanley which is better depends on individual financial goals and preferences. JP Morgan is a diversified financial giant offering a broad range of services, while Morgan Stanley specializes in investment banking and wealth management. Investors should consider factors such as risk tolerance, preferred services, and long-term financial objectives when choosing between the two.

AdvisoryHQ Conclusion 2024 | JP Morgan vs Goldman Sachs vs Morgan Stanley, Which Investment Bank Is for Me?

There are many choices for your investment banking needs, and the three largest financial institutions in the country offer distinct services and expertise that can be tailored to your personal financial needs.

When comparing Goldman Sachs to JP Morgan or Morgan Stanley to JP Morgan, the main differences are concerning the commercial banking services offered by JP Morgan and the growth strategies chosen by Goldman Sachs and the two Goldman Sachs competitors.

If you are interested in large-scale investments but still want your personal banking needs to be met by the same bank, then thinking about JP Morgan is probably your best option for branch banking.

But JP Morgan competitors like Goldman Sachs are going after the personal banking market as well, through online and digital banking services, so that’s an option if you don’t need to visit a branch in person.

If you’re looking mainly for large-scale investments and like a more conservative firm, then Morgan Stanley would be a good match for you.For a slightly less conservative choice, Goldman Sachs would be an option.

When choosing between Goldman Sachs vs. Morgan Stanley, you will want to consider what business model best suits your financial interests and long-term investment plan.

If you are mostly interested in wealth management, Morgan Stanley easily has the upper hand. If, however, you prefer the high-risk, high reward financial system that characterized the pre-crisis economy, then Goldman Sachs fits that model.

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