Until recently, JPMorgan Chase (NYSE:JPM)analyst Kian Abouhossein rated both Goldman Sachs (NYSE:GS)and Morgan Stanley(NYSE:MS) "neutral" (i.e., a "hold"). But this week, his view on the two investment-banking heavyweights diverged: He now rates Morgan Stanley "overweight" (i.e., a "buy") and Goldman Sachs "underweight" (i.e., a "sell").
Is he right? Senior analyst Anand Chokkavelu thinks the numbers favor Morgan Stanley and reputation favors Goldman Sachs. However, Anand isn't particularly interested in either of them because there are many better risk-reward bets in banking -- including the company rating the two.
See more in the following video.
One bank Anand thinks folks should look into is a small, under-the-radar bank. It’s been called one of The Stocks Only the Smartest Investors Are Buying. You can learn about it, and more, in our exclusive free report. Just click here to keep reading.