Goldman Sachs vs Alphabet

Goldman Sachs and Alphabet Inc. are two prominent companies in the financial and technology sectors, respectively. Both companies have significant influence in the market, with Goldman Sachs being a leading global investment banking and financial services firm, while Alphabet is the parent company of Google and other successful technology ventures. Their stocks are closely watched by investors for their performance and potential for growth. This comparison between Goldman Sachs and Alphabet stocks will provide insight into the differences and similarities in their financial standings and market outlooks.

Goldman Sachs or Alphabet?

When comparing Goldman Sachs and Alphabet, 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 and Alphabet.

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 has a dividend yield of 2.15%, while Alphabet has a dividend yield of 0.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Goldman Sachs reports a 5-year dividend growth of 27.23% year and a payout ratio of 38.60%. On the other hand, Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.81%.

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 P/E ratio at 15.33 and Alphabet's P/E ratio at 23.30. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Goldman Sachs P/B ratio is 1.44 while Alphabet's P/B ratio is 6.79.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Goldman Sachs has seen a 5-year revenue growth of 0.57%, while Alphabet's is 1.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goldman Sachs's ROE at 9.53% and Alphabet's ROE at 30.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $515.75 for Goldman Sachs and $166.05 for Alphabet. Over the past year, Goldman Sachs's prices ranged from $289.36 to $540.51, with a yearly change of 86.79%. Alphabet's prices fluctuated between $121.46 and $193.31, with a yearly change of 59.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.