Goldman Sachs vs Meta Which Should You Buy?

Goldman Sachs and Meta (formerly Facebook) are two giant companies in the finance and technology spheres, respectively. Both companies have garnered significant attention from investors and analysts due to their innovative approaches and strong financial performance. Goldman Sachs, a global investment banking and financial services firm, is known for its expertise in wealth management, investment banking, and asset management. Meta, on the other hand, is a social media and technology company that has revolutionized the way people connect and communicate online. In this article, we will compare the stocks of Goldman Sachs and Meta, analyzing their performance, market trends, and potential for growth.

Goldman Sachs or Meta?

When comparing Goldman Sachs and Meta, 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 Meta.

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 1.92%, while Meta has a dividend yield of -%. 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, Meta 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 16.00 and Meta's P/E ratio at -2.97. 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 1.61 while Meta's P/B ratio is 0.20.

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 Meta's is -1.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goldman Sachs's ROE at 10.23% and Meta's ROE at -6.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $594.37 for Goldman Sachs and ฿0.13 for Meta. Over the past year, Goldman Sachs's prices ranged from $343.78 to $612.73, with a yearly change of 78.23%. Meta's prices fluctuated between ฿0.11 and ฿0.21, with a yearly change of 90.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.