Brookfield Asset Management vs Goldman Sachs Which Offers More Value?

Brookfield Asset Management and Goldman Sachs are both well-established financial institutions with strong track records in the investment world. While Brookfield Asset Management is known for its focus on real estate and infrastructure investments, Goldman Sachs is a global investment banking and financial services firm. Both companies have seen fluctuations in their stock prices over the years, but investors continue to see value in their diverse portfolios and strategic approaches to wealth management. This comparison will delve into the key differences and similarities between these two prominent firms.

Brookfield Asset Management or Goldman Sachs?

When comparing Brookfield Asset Management 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 Brookfield Asset Management 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. Brookfield Asset Management has a dividend yield of 2.65%, 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. Brookfield Asset Management reports a 5-year dividend growth of 0.00% year and a payout ratio of 307.51%. 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 Brookfield Asset Management P/E ratio at 53.57 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. Brookfield Asset Management P/B ratio is 7.48 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, Brookfield Asset Management has seen a 5-year revenue growth of -0.82%, while Goldman Sachs's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Brookfield Asset Management's ROE at 16.72% 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 $57.18 for Brookfield Asset Management and $585.09 for Goldman Sachs. Over the past year, Brookfield Asset Management's prices ranged from $37.19 to $59.58, with a yearly change of 60.20%. 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.