GS vs. SCHW, MS, BLK, IBKR, RY, PGR, MUFG, AXP, C, and HSBC
Should you be buying The Goldman Sachs Group stock or one of its competitors? The main competitors of The Goldman Sachs Group include Charles Schwab (SCHW), Morgan Stanley (MS), BlackRock (BLK), Interactive Brokers Group (IBKR), Royal Bank of Canada (RY), Progressive (PGR), Mitsubishi UFJ Financial Group (MUFG), American Express (AXP), Citigroup (C), and HSBC (HSBC). These companies are all part of the "finance" sector.
Charles Schwab (NYSE:SCHW) and The Goldman Sachs Group (NYSE:GS) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, media sentiment, earnings, profitability, valuation, dividends and community ranking.
Charles Schwab pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. The Goldman Sachs Group pays an annual dividend of $11.00 per share and has a dividend yield of 2.5%. Charles Schwab pays out 41.8% of its earnings in the form of a dividend. The Goldman Sachs Group pays out 43.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Charles Schwab has raised its dividend for 2 consecutive years and The Goldman Sachs Group has raised its dividend for 3 consecutive years. The Goldman Sachs Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Charles Schwab has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, The Goldman Sachs Group has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.
The Goldman Sachs Group has higher revenue and earnings than Charles Schwab. The Goldman Sachs Group is trading at a lower price-to-earnings ratio than Charles Schwab, indicating that it is currently the more affordable of the two stocks.
Charles Schwab has a net margin of 26.14% compared to Charles Schwab's net margin of 8.17%. The Goldman Sachs Group's return on equity of 19.86% beat Charles Schwab's return on equity.
84.4% of Charles Schwab shares are held by institutional investors. Comparatively, 71.2% of The Goldman Sachs Group shares are held by institutional investors. 6.6% of Charles Schwab shares are held by company insiders. Comparatively, 0.6% of The Goldman Sachs Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
The Goldman Sachs Group received 386 more outperform votes than Charles Schwab when rated by MarketBeat users. However, 63.16% of users gave Charles Schwab an outperform vote while only 60.29% of users gave The Goldman Sachs Group an outperform vote.
Charles Schwab currently has a consensus target price of $74.47, indicating a potential downside of 1.42%. The Goldman Sachs Group has a consensus target price of $440.57, indicating a potential downside of 0.72%. Given Charles Schwab's stronger consensus rating and higher probable upside, analysts plainly believe The Goldman Sachs Group is more favorable than Charles Schwab.
In the previous week, The Goldman Sachs Group had 33 more articles in the media than Charles Schwab. MarketBeat recorded 58 mentions for The Goldman Sachs Group and 25 mentions for Charles Schwab. Charles Schwab's average media sentiment score of 0.56 beat The Goldman Sachs Group's score of 0.55 indicating that The Goldman Sachs Group is being referred to more favorably in the news media.
Summary
The Goldman Sachs Group beats Charles Schwab on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding GS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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