Goldman Sachs vs Citigroup Which Is Superior?

Goldman Sachs and Citigroup are two major players in the global financial market, each with a long-standing history and reputation for excellence. Both companies are known for their diverse range of financial services and have a strong presence in the investment banking sector. When it comes to their stocks, Goldman Sachs has historically been perceived as a more prestigious and stable investment option, while Citigroup offers more growth potential with its diversified revenue streams and extensive global presence. Investors looking for steady returns may lean towards Goldman Sachs, while those seeking higher risk and potential rewards may prefer Citigroup.

Goldman Sachs or Citigroup?

When comparing Goldman Sachs and Citigroup, 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 Citigroup.

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 1.98%, while Citigroup has a dividend yield of 3.03%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Goldman Sachs reports a 5-year dividend growth of 22.61% year and a payout ratio of 23.42%. On the other hand, Citigroup reports a 5-year dividend growth of 2.57% year and a payout ratio of 30.63%.

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 13.39 and Citigroup's P/E ratio at 12.34. 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 1.57 while Citigroup's P/B ratio is 0.75.

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 0.77%, while Citigroup's is 0.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goldman Sachs's ROE at 11.87% and Citigroup's ROE at 6.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $576.78 for Goldman Sachs and $71.70 for Citigroup. Over the past year, Goldman Sachs's prices ranged from $381.42 to $672.19, with a yearly change of 76.23%. Citigroup's prices fluctuated between $53.51 and $84.74, with a yearly change of 58.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.