Blackstone vs Goldman Sachs Which Is More Reliable?

Blackstone Group and Goldman Sachs Group are two well-known financial services companies that are frequently compared in terms of their performance in the stock market. Blackstone Group is a global investment firm that specializes in private equity, real estate, and credit investments, while Goldman Sachs is a multinational investment bank and financial services company. Investors often scrutinize the performance of these two companies to gauge current market trends and make informed decisions about their investments. Let's delve deeper into the comparison of Blackstone vs. Goldman Sachs stocks.

Blackstone or Goldman Sachs?

When comparing Blackstone 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 Blackstone 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. Blackstone has a dividend yield of 2.35%, while Goldman Sachs has a dividend yield of 1.87%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Blackstone reports a 5-year dividend growth of 6.53% year and a payout ratio of 196.69%. 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 Blackstone P/E ratio at 63.26 and Goldman Sachs's P/E ratio at 16.07. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Blackstone P/B ratio is 20.08 while Goldman Sachs's P/B ratio is 1.62.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Blackstone has seen a 5-year revenue growth of 1.12%, while Goldman Sachs's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Blackstone's ROE at 32.22% 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 $179.03 for Blackstone and $596.16 for Goldman Sachs. Over the past year, Blackstone's prices ranged from $96.93 to $183.96, with a yearly change of 89.79%. Goldman Sachs's prices fluctuated between $323.53 and $607.15, with a yearly change of 87.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.