Wells Fargo & vs Goldman Sachs Which Performs Better?

Wells Fargo & Company and Goldman Sachs Group are two prominent financial institutions in the United States with significant presence in the stock market. Wells Fargo is a diversified financial services company with a focus on retail banking, while Goldman Sachs is a global investment banking and securities firm. Both companies have experienced fluctuations in their stock prices due to various internal and external factors. Investors looking to compare the performance and potential of these two stocks should consider their financial strength, market position, and growth prospects.

Wells Fargo & or Goldman Sachs?

When comparing Wells Fargo & 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 Wells Fargo & 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. Wells Fargo & has a dividend yield of 2.13%, 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. Wells Fargo & reports a 5-year dividend growth of -4.54% year and a payout ratio of 34.33%. 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 Wells Fargo & P/E ratio at 13.18 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. Wells Fargo & P/B ratio is 1.30 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, Wells Fargo & has seen a 5-year revenue growth of 0.16%, while Goldman Sachs's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wells Fargo &'s ROE at 9.96% 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 $70.02 for Wells Fargo & and $585.09 for Goldman Sachs. Over the past year, Wells Fargo &'s prices ranged from $46.12 to $78.13, with a yearly change of 69.41%. 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.