Goldman Sachs vs Deutsche Bank Which Is a Better Investment?

Goldman Sachs and Deutsche Bank are two of the largest and most influential investment banks in the world. Both companies have a long history of success in the financial markets, but they have faced their fair share of challenges in recent years. The stocks of these two banks have been closely watched by investors and analysts alike, as they offer insight into the health of the global economy and the financial industry as a whole. In this comparison, we will delve into the key factors that differentiate Goldman Sachs and Deutsche Bank stocks, analyzing their performance, market trends, and future prospects.

Goldman Sachs or Deutsche Bank?

When comparing Goldman Sachs and Deutsche Bank, 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 Deutsche Bank.

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 1.96%, while Deutsche Bank has a dividend yield of 2.88%. 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 36.22%. On the other hand, Deutsche Bank reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 15.62 and Deutsche Bank's P/E ratio at 8.14. 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 Deutsche Bank's P/B ratio is 0.45.

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 Deutsche Bank's is 0.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goldman Sachs's ROE at 10.23% and Deutsche Bank's ROE at 5.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $585.09 for Goldman Sachs and $17.79 for Deutsche Bank. Over the past year, Goldman Sachs's prices ranged from $372.07 to $612.73, with a yearly change of 64.68%. Deutsche Bank's prices fluctuated between $12.43 and $18.07, with a yearly change of 45.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.