Since the start of this year, Charles Schwab (NYSE: SCHW) has been the subject of investor scrutiny. The company saw some deposit outflows related to interest rates reaching their highest level in decades. After a couple of regional banks failed in March, Charles Schwab's deposit struggles came into focus.

Schwab stock is down 34% this year and trades around its cheapest valuation in years. On the surface, the stock looks like an intriguing option for value investors. However, before buying Charles Schwab, you might want to take a closer look at Morgan Stanley (NYSE: MS). The banking giant navigated a challenging market for financial companies and has levers it can pull to bounce back big when market conditions improve. 

Charles Schwab offers a variety of financial services to customers, including wealth management, banking, brokerage, and other financial advisory services. The company has dealt with challenges stemming from interest rates at a level not seen in two decades. These high rates are due to the Federal Reserve's strategy to aggressively raise its benchmark interest rate as it attempts to put a lid on inflationary pressures in the economy.

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Source Fool.com