The Goldman Sachs Group (NYSE:GS – Get Free Report) and JPMorgan Chase & Co. (NYSE:JPM – Get Free Report) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.
Institutional & Insider Ownership
71.2% of The Goldman Sachs Group shares are owned by institutional investors. Comparatively, 71.6% of JPMorgan Chase & Co. shares are owned by institutional investors. 0.6% of The Goldman Sachs Group shares are owned by company insiders. Comparatively, 0.5% of JPMorgan Chase & Co. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and price targets for The Goldman Sachs Group and JPMorgan Chase & Co., as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The Goldman Sachs Group | 1 | 15 | 8 | 1 | 2.36 |
| JPMorgan Chase & Co. | 1 | 13 | 14 | 0 | 2.46 |
Profitability
This table compares The Goldman Sachs Group and JPMorgan Chase & Co.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| The Goldman Sachs Group | 13.73% | 15.19% | 0.96% |
| JPMorgan Chase & Co. | 20.35% | 17.16% | 1.30% |
Risk and Volatility
The Goldman Sachs Group has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, JPMorgan Chase & Co. has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.
Valuation and Earnings
This table compares The Goldman Sachs Group and JPMorgan Chase & Co.”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| The Goldman Sachs Group | $125.10 billion | 2.24 | $17.18 billion | $51.29 | 18.23 |
| JPMorgan Chase & Co. | $280.35 billion | 2.97 | $57.05 billion | $20.01 | 15.27 |
JPMorgan Chase & Co. has higher revenue and earnings than The Goldman Sachs Group. JPMorgan Chase & Co. is trading at a lower price-to-earnings ratio than The Goldman Sachs Group, indicating that it is currently the more affordable of the two stocks.
Dividends
The Goldman Sachs Group pays an annual dividend of $16.00 per share and has a dividend yield of 1.7%. JPMorgan Chase & Co. pays an annual dividend of $6.00 per share and has a dividend yield of 2.0%. The Goldman Sachs Group pays out 31.2% of its earnings in the form of a dividend. JPMorgan Chase & Co. pays out 30.0% 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. The Goldman Sachs Group has increased its dividend for 13 consecutive years and JPMorgan Chase & Co. has increased its dividend for 15 consecutive years. JPMorgan Chase & Co. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
JPMorgan Chase & Co. beats The Goldman Sachs Group on 13 of the 18 factors compared between the two stocks.
About The Goldman Sachs Group
The Goldman Sachs Group, Inc., a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals worldwide. It operates through Global Banking & Markets, Asset & Wealth Management, and Platform Solutions segments. The Global Banking & Markets segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs; and relationship lending, and acquisition financing, as well as secured lending, through structured credit and asset-backed lending and involved in financing under securities to resale agreements. This segment also offers client execution activities for cash and derivative instruments; credit and interest rate products; and provision of mortgages, currencies, commodities, and equities related products, as well as underwriting services. The Asset & Wealth Management segment manages assets across various classes, including equity, fixed income, hedge funds, credit funds, private equity, real estate, currencies, and commodities; and provides customized investment advisory solutions, wealth advisory services, personalized financial planning, and private banking services, as well as invests in corporate equity, credit, real estate, and infrastructure assets. The Platform Solutions segment offers credit cards and point-of-sale financing for purchase of goods or services. This segment also provides cash management services, such as deposit-taking and payment solutions for corporate and institutional clients. The Goldman Sachs Group, Inc. was founded in 1869 and is headquartered in New York, New York.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. is a financial holding company, which engages in the provision of financial and investment banking services. It focuses on investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. It operates through the following segments: Consumer and Community Banking (CCB), Commercial and Investment Bank (CIB), Asset and Wealth Management (AWM), and Corporate. The CCB segment originates and services mortgage loans. The CIB segment makes markets and services clients across fixed income, foreign exchange, equities, and commodities. The AWM segment provides initial capital investments in products such as mutual funds and capital invested alongside third-party investors. The Corporate segment manages its liquidity, funding, capital, structural interest rate, and foreign exchange risks. The company was founded in 1799 and is headquartered in New York, NY.
Receive News & Ratings for The Goldman Sachs Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for The Goldman Sachs Group and related companies with MarketBeat.com's FREE daily email newsletter.
