Nomura vs Goldman Sachs Which Is Stronger?

Nomura Holdings and Goldman Sachs Group are two of the most renowned investment banks in the world, each with a strong presence in the global financial markets. Both companies have a long history of providing a wide range of financial services, including investment banking, asset management, and securities trading. Investors often compare Nomura and Goldman Sachs stocks to assess which company offers better value and growth potential. In this analysis, we will explore the key differences between Nomura and Goldman Sachs stocks, including their financial performance, market reputation, and future prospects.

Nomura or Goldman Sachs?

When comparing Nomura 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 Nomura 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. Nomura has a dividend yield of 1.3%, while Goldman Sachs has a dividend yield of 1.92%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nomura reports a 5-year dividend growth of 0.00% year and a payout ratio of 8.78%. 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 Nomura P/E ratio at 9.94 and Goldman Sachs's P/E ratio at 16.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nomura P/B ratio is 0.83 while Goldman Sachs's P/B ratio is 1.61.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nomura has seen a 5-year revenue growth of 0.03%, while Goldman Sachs's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nomura's ROE at 8.20% 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 $6.13 for Nomura and $594.37 for Goldman Sachs. Over the past year, Nomura's prices ranged from $4.12 to $6.62, with a yearly change of 60.68%. Goldman Sachs's prices fluctuated between $343.78 and $612.73, with a yearly change of 78.23%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.