Jefferies Financial vs Goldman Sachs Which Is a Better Investment?

Jefferies Financial Group and Goldman Sachs Group are two well-known investment banks with a strong presence in the financial markets. Both companies have a long history of providing a wide range of financial services, including investment banking, asset management, and securities trading. While Jefferies Financial Group is known for its specialization in middle-market companies, Goldman Sachs has a more global reach and offers a broader range of financial products. Investors are always interested in comparing the performance and potential of these two industry giants.

Jefferies Financial or Goldman Sachs?

When comparing Jefferies Financial and Goldman Sachs, 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 Jefferies Financial and Goldman Sachs.

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. Jefferies Financial has a dividend yield of 1.6%, while Goldman Sachs has a dividend yield of 1.94%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Jefferies Financial reports a 5-year dividend growth of 21.67% year and a payout ratio of 49.96%. On the other hand, Goldman Sachs reports a 5-year dividend growth of 27.23% year and a payout ratio of 36.22%.

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 Jefferies Financial P/E ratio at 29.82 and Goldman Sachs's P/E ratio at 15.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Jefferies Financial P/B ratio is 1.73 while Goldman Sachs's P/B ratio is 1.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Jefferies Financial has seen a 5-year revenue growth of 2.09%, while Goldman Sachs's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Jefferies Financial's ROE at 5.92% and Goldman Sachs's ROE at 10.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $80.35 for Jefferies Financial and $588.61 for Goldman Sachs. Over the past year, Jefferies Financial's prices ranged from $37.95 to $81.70, with a yearly change of 115.28%. Goldman Sachs's prices fluctuated between $365.00 and $612.73, with a yearly change of 67.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.