JPMorgan Chase vs Goldman Sachs Which Performs Better?

JPMorgan Chase and Goldman Sachs are two of the largest and most well-known investment banks in the world. Both companies have a long history of providing financial services to clients around the globe. In recent years, their stocks have been closely watched by investors due to their strong performance and stability. JPMorgan Chase is known for its diverse revenue streams and strong balance sheet, while Goldman Sachs is renowned for its expertise in investment banking and asset management. This comparison between the two stocks offers a unique insight into the financial industry and the different strengths of these prestigious institutions.

JPMorgan Chase or Goldman Sachs?

When comparing JPMorgan Chase 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 JPMorgan Chase 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. JPMorgan Chase has a dividend yield of 1.92%, while Goldman Sachs has a dividend yield of 1.96%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. JPMorgan Chase reports a 5-year dividend growth of 10.31% year and a payout ratio of 26.69%. 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 JPMorgan Chase P/E ratio at 12.76 and Goldman Sachs's P/E ratio at 15.62. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. JPMorgan Chase P/B ratio is 1.98 while Goldman Sachs's P/B ratio is 1.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, JPMorgan Chase has seen a 5-year revenue growth of 0.55%, while Goldman Sachs's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with JPMorgan Chase's ROE at 15.92% 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 $239.14 for JPMorgan Chase and $585.09 for Goldman Sachs. Over the past year, JPMorgan Chase's prices ranged from $162.39 to $254.31, with a yearly change of 56.60%. Goldman Sachs's prices fluctuated between $372.07 and $612.73, with a yearly change of 64.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.