Evercore vs Goldman Sachs Which Is More Profitable?

Evercore and Goldman Sachs are two heavyweight investment banks that dominate the financial services industry. Evercore, with its focus on advisory services and restructuring, has carved out a niche for itself in the market. On the other hand, Goldman Sachs, known for its wide range of services including investment banking, asset management, and securities trading, is a powerhouse in the industry. Both firms have strong track records and loyal client bases, making them attractive investment opportunities for those looking to capitalize on the financial sector's growth potential.

Evercore or Goldman Sachs?

When comparing Evercore 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 Evercore 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. Evercore has a dividend yield of 1.44%, 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. Evercore reports a 5-year dividend growth of 7.12% year and a payout ratio of 35.91%. 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 Evercore P/E ratio at 22.58 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. Evercore P/B ratio is 5.00 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, Evercore has seen a 5-year revenue growth of 0.56%, while Goldman Sachs's is 0.77%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Evercore's ROE at 24.31% 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 $216.40 for Evercore and $576.78 for Goldman Sachs. Over the past year, Evercore's prices ranged from $175.24 to $324.06, with a yearly change of 84.92%. 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.