Goldman Sachs vs Nomura Which Outperforms?

Goldman Sachs and Nomura are two well-known financial institutions that are often compared in the stock market. Both firms are global leaders in investment banking and wealth management, with a strong reputation for providing high-quality financial services. Investors often debate which company offers the best potential for growth and returns. While Goldman Sachs is widely regarded as a top performer with a long history of success, Nomura has also made significant strides in recent years, making it a formidable competitor in the financial industry.

Goldman Sachs or Nomura?

When comparing Goldman Sachs and Nomura, 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 Nomura.

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 Nomura has a dividend yield of 1.36%. 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 36.22%. On the other hand, Nomura reports a 5-year dividend growth of 0.00% year and a payout ratio of 8.78%.

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 Nomura's P/E ratio at 9.75. 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 Nomura's P/B ratio is 0.81.

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 Nomura's is 0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goldman Sachs's ROE at 10.23% and Nomura's ROE at 8.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $596.16 for Goldman Sachs and $5.87 for Nomura. Over the past year, Goldman Sachs's prices ranged from $323.53 to $607.15, with a yearly change of 87.66%. Nomura's prices fluctuated between $4.01 and $6.62, with a yearly change of 65.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.