Goldman Sachs vs Netflix Which Is More Reliable?

Goldman Sachs and Netflix are both prominent players in the financial and technology sectors, with each company enjoying a significant presence in the stock market. Goldman Sachs has a long-standing reputation as one of the world's leading investment banks, while Netflix has revolutionized the entertainment industry with its popular streaming platform. Both companies have experienced fluctuations in their stock prices, with investors closely watching their performance in the market. This comparison will delve into the key factors influencing the stock prices of Goldman Sachs and Netflix.

Goldman Sachs or Netflix?

When comparing Goldman Sachs and Netflix, 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 Netflix.

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 1.87%, while Netflix 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, Netflix 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 16.07 and Netflix's P/E ratio at 44.33. 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 1.62 while Netflix's P/B ratio is 15.18.

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 Netflix's is 1.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goldman Sachs's ROE at 10.23% and Netflix's ROE at 35.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $596.16 for Goldman Sachs and $795.57 for Netflix. Over the past year, Goldman Sachs's prices ranged from $323.53 to $607.15, with a yearly change of 87.66%. Netflix's prices fluctuated between $442.60 and $806.82, with a yearly change of 82.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.