Goldman Sachs vs WPP Which Is More Profitable?

Goldman Sachs and WPP are two renowned companies in the financial and advertising sectors, respectively. Both companies are publicly traded on major stock exchanges and have a strong global presence. The stock performance of Goldman Sachs and WPP has been closely monitored by investors and analysts, with fluctuations in the market impacting their stock prices. This comparison will assess the financial health, growth prospects, and overall investment potential of Goldman Sachs and WPP stocks.

Goldman Sachs or WPP?

When comparing Goldman Sachs and WPP, 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 WPP.

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 WPP has a dividend yield of 3.53%. 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, WPP reports a 5-year dividend growth of -9.86% year and a payout ratio of 207.87%.

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 WPP's P/E ratio at 234.41. 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 WPP's P/B ratio is 13.63.

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 WPP's is 0.55%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goldman Sachs's ROE at 10.23% and WPP's ROE at 5.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $585.09 for Goldman Sachs and $55.75 for WPP. Over the past year, Goldman Sachs's prices ranged from $372.07 to $612.73, with a yearly change of 64.68%. WPP's prices fluctuated between $43.02 and $57.37, with a yearly change of 33.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.