Carlyle vs Goldman Sachs Which Is More Favorable?

Carlyle Group and Goldman Sachs are two prominent players in the financial industry, with both firms trading on stock exchanges. Carlyle, a leading global investment firm, focuses on private equity, real assets, and credit investments. Goldman Sachs, on the other hand, is a multinational investment bank known for its expertise in investment banking, asset management, and securities trading. Both companies have experienced fluctuations in their stock prices over the years, making them intriguing options for investors seeking exposure to the financial sector.

Carlyle or Goldman Sachs?

When comparing Carlyle 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 Carlyle 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. Carlyle has a dividend yield of 3.03%, while Goldman Sachs has a dividend yield of 1.98%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Carlyle reports a 5-year dividend growth of 0.58% year and a payout ratio of 61.60%. On the other hand, Goldman Sachs reports a 5-year dividend growth of 22.61% year and a payout ratio of 23.42%.

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 Carlyle P/E ratio at 16.22 and Goldman Sachs's P/E ratio at 13.39. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Carlyle P/B ratio is 2.95 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, Carlyle has seen a 5-year revenue growth of -0.37%, while Goldman Sachs's is 0.77%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Carlyle's ROE at 17.97% and Goldman Sachs's ROE at 11.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $44.45 for Carlyle and $576.78 for Goldman Sachs. Over the past year, Carlyle's prices ranged from $36.65 to $57.50, with a yearly change of 56.89%. Goldman Sachs's prices fluctuated between $381.42 and $672.19, with a yearly change of 76.23%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.