Financial Comparison: Goldman Sachs (GS) versus Its Competitors

Goldman Sachs (NYSE: GS) is one of 31 publicly-traded companies in the “Security brokers & dealers” industry, but how does it contrast to its rivals? We will compare Goldman Sachs to similar businesses based on the strength of its dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Valuation and Earnings

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This table compares Goldman Sachs and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Goldman Sachs $32.07 billion $4.29 billion 12.18
Goldman Sachs Competitors $5.86 billion $744.86 million 24.10

Goldman Sachs has higher revenue and earnings than its rivals. Goldman Sachs is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

73.2% of Goldman Sachs shares are held by institutional investors. Comparatively, 63.3% of shares of all “Security brokers & dealers” companies are held by institutional investors. 2.6% of Goldman Sachs shares are held by company insiders. Comparatively, 21.8% of shares of all “Security brokers & dealers” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Goldman Sachs has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Goldman Sachs’ rivals have a beta of 8.84, meaning that their average stock price is 784% more volatile than the S&P 500.

Dividends

Goldman Sachs pays an annual dividend of $3.00 per share and has a dividend yield of 1.2%. Goldman Sachs pays out 15.2% of its earnings in the form of a dividend. As a group, “Security brokers & dealers” companies pay a dividend yield of 1.6% and pay out 35.0% of their earnings in the form of a dividend. Goldman Sachs has raised its dividend for 6 consecutive years.

Analyst Ratings

This is a summary of current recommendations for Goldman Sachs and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Goldman Sachs 2 10 10 0 2.36
Goldman Sachs Competitors 326 1393 1455 69 2.39

Goldman Sachs presently has a consensus price target of $267.44, indicating a potential upside of 11.00%. As a group, “Security brokers & dealers” companies have a potential upside of 1.77%. Given Goldman Sachs’ higher probable upside, analysts clearly believe Goldman Sachs is more favorable than its rivals.

Profitability

This table compares Goldman Sachs and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Goldman Sachs 14.27% 12.10% 0.99%
Goldman Sachs Competitors 6.68% 5.38% 5.89%

Summary

Goldman Sachs beats its rivals on 8 of the 15 factors compared.

About Goldman Sachs

The Goldman Sachs Group, Inc. operates as an investment banking, securities, and investment management company worldwide. It operates through four segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, spin-offs, and risk management; and underwriting services, such as debt and equity underwriting of public offerings and private placements of various securities and other financial instruments, as well as derivative transactions with public and private sector clients. The Institutional Client Services segment is involved in client execution activities related to making markets in cash and derivative instruments for interest rate products, credit products, mortgages, currencies, commodities, and equities; and provision of securities services comprising financing, securities lending, and other prime brokerage services, as well as markets in and clears client transactions on primary stock, options, and futures exchanges. The Investing & Lending segment invests in and originates longer-term loans to provide financing to clients; and makes investments in debt securities and loans, public and private equity securities, and infrastructure and real estate entities, as well as provides unsecured and secured loans to retail clients through its digital platforms. The Investment Management segment offers investment management products and services; and wealth advisory services consisting of portfolio management, financial planning and counseling, and brokerage and other transaction services. The company serves corporations, financial institutions, governments, and individuals. The Goldman Sachs Group, Inc. was founded in 1869 and is headquartered in New York, New York.

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