Alphabet vs Goldman Sachs Which Is More Profitable?

Both Alphabet Inc. and Goldman Sachs Group Inc. are well-known companies in their respective industries. Alphabet, the parent company of Google, is a dominant player in the technology sector, known for its innovative products and services. On the other hand, Goldman Sachs is a leading global investment banking and financial services firm. Both stocks are valuable assets for investors looking to diversify their portfolios and capitalize on the growth potential of these dynamic companies.

Alphabet or Goldman Sachs?

When comparing Alphabet and Goldman Sachs, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Alphabet and Goldman Sachs.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Alphabet has a dividend yield of 0.32%, while Goldman Sachs has a dividend yield of 1.96%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.22%. On the other hand, Goldman Sachs reports a 5-year dividend growth of 27.23% year and a payout ratio of 36.22%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Alphabet P/E ratio at 24.75 and Goldman Sachs's P/E ratio at 15.62. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alphabet P/B ratio is 7.43 while Goldman Sachs's P/B ratio is 1.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alphabet has seen a 5-year revenue growth of 1.47%, while Goldman Sachs's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alphabet's ROE at 31.66% and Goldman Sachs's ROE at 10.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $191.26 for Alphabet and $585.09 for Goldman Sachs. Over the past year, Alphabet's prices ranged from $131.55 to $196.89, with a yearly change of 49.67%. Goldman Sachs's prices fluctuated between $372.07 and $612.73, with a yearly change of 64.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.