Goldman Sachs vs UBS Which Is More Favorable?

Goldman Sachs and UBS are two major players in the financial services industry, with their stocks often attracting the attention of investors looking to capitalize on the performance of these prominent companies. Both firms have a long history of providing a wide range of financial services, including investment banking, wealth management, and asset management. While Goldman Sachs is known for its strong presence in Wall Street, UBS has a significant global footprint in the financial markets. In this comparison, we will analyze the performance and prospects of Goldman Sachs vs UBS stocks to help investors make informed decisions.

Goldman Sachs or UBS?

When comparing Goldman Sachs and UBS, 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 UBS.

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 1.91%, while UBS has a dividend yield of 3.29%. 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, UBS reports a 5-year dividend growth of 0.00% year and a payout ratio of 55.02%.

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 15.71 and UBS's P/E ratio at 25.09. 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 1.58 while UBS's P/B ratio is 1.16.

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 UBS's is 0.49%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goldman Sachs's ROE at 10.23% and UBS's ROE at 4.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $586.24 for Goldman Sachs and $31.66 for UBS. Over the past year, Goldman Sachs's prices ranged from $334.55 to $607.15, with a yearly change of 81.48%. UBS's prices fluctuated between $25.27 and $33.34, with a yearly change of 31.96%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.