Brookfield vs Goldman Sachs Which Is Stronger?

Brookfield Asset Management and Goldman Sachs are two prominent financial institutions that have generated considerable interest among investors. Brookfield, known for its diversified portfolio of assets in real estate, infrastructure, and renewable energy, has shown a consistent track record of growth and stability. On the other hand, Goldman Sachs, a leading investment bank, has a strong reputation for its financial services and advisory capabilities. Both companies have strategic advantages and potential for long-term growth, making them attractive options for investors seeking to diversify their portfolios.

Brookfield or Goldman Sachs?

When comparing Brookfield 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 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 has a dividend yield of 0.41%, while Goldman Sachs has a dividend yield of 1.94%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Brookfield reports a 5-year dividend growth of -10.22% year and a payout ratio of 71.80%. 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 P/E ratio at 98.27 and Goldman Sachs's P/E ratio at 15.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Brookfield P/B ratio is 1.92 while Goldman Sachs's P/B ratio is 1.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Brookfield has seen a 5-year revenue growth of 0.59%, while Goldman Sachs's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Brookfield's ROE at 2.00% 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 $59.01 for Brookfield and $593.72 for Goldman Sachs. Over the past year, Brookfield's prices ranged from $35.66 to $62.44, with a yearly change of 75.10%. Goldman Sachs's prices fluctuated between $349.05 and $612.73, with a yearly change of 75.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.