Goldman Sachs BDC vs Goldman Sachs Which Performs Better?

Goldman Sachs is a renowned name in the financial world, with two prominent investment options: Goldman Sachs Business Development Company (BDC) and Goldman Sachs stocks. The Goldman Sachs BDC offers investors exposure to a diversified portfolio of middle-market companies, providing potential for attractive returns and income. On the other hand, Goldman Sachs stocks represent ownership in the parent company, giving investors the opportunity to benefit from the overall performance and stability of the firm. Both investment options offer unique advantages and considerations for investors to weigh.

Goldman Sachs BDC or Goldman Sachs?

When comparing Goldman Sachs BDC 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 Goldman Sachs BDC 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. Goldman Sachs BDC has a dividend yield of 13.89%, 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. Goldman Sachs BDC reports a 5-year dividend growth of 0.00% year and a payout ratio of 220.62%. 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 Goldman Sachs BDC P/E ratio at 14.17 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. Goldman Sachs BDC P/B ratio is 0.96 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, Goldman Sachs BDC has seen a 5-year revenue growth of 1.29%, while Goldman Sachs's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goldman Sachs BDC's ROE at 6.67% 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 $12.90 for Goldman Sachs BDC and $596.16 for Goldman Sachs. Over the past year, Goldman Sachs BDC's prices ranged from $12.76 to $15.94, with a yearly change of 24.97%. 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.