The Goldman Sachs Group, Inc. (GS) vs Morgan Stanley (MS)

The Goldman Sachs Group, Inc. and Morgan Stanley are both Capital Markets companies. Morgan Stanley is the larger, with a market value of $309.4B against $269.9B — 1.1× the size. The Goldman Sachs Group, Inc. trades at the lower P/E: 14.3× against 15.7×. The Goldman Sachs Group, Inc. grew revenue faster over the last twelve months: 17.8% against 14.0%. The Goldman Sachs Group, Inc. has the higher net margin (30.3% vs 15.2%) and the lower return on invested capital (0.00% vs 123.3%). Both pay a dividend; Morgan Stanley yields more (4.12% vs 2.96%). Across the 22 metrics below, The Goldman Sachs Group, Inc. leads on 11 and Morgan Stanley on 11.

Valuation

Metric GS MS Capital Markets median
P/E 14.25 15.68 15.78
P/S 4.24 2.37 2.32
P/B 2.56 2.83 1.89
Price to free cash flow n/m n/m 6.25
EV/EBITDA 2.67 2.79 8.87
EV/Sales 1.14 1.76 2.28
Earnings yield 7.02% 6.38% (3.77%)
Free cash flow yield (14.57%) (6.09%) (1.49%)

Profitability

Metric GS MS Capital Markets median
Gross margin 100.00% 96.13% 62.80%
Operating margin 39.72% 59.71% 0.00%
Net margin 30.28% 15.18% (0.55%)
Free cash flow margin (61.77%) (14.43%) 0.00%
Return on equity 18.34% 18.87% 0.00%
Return on assets 1.02% 1.29% 0.00%
Return on invested capital 0.00% 123.28% 0.00%

Growth

Metric GS MS Capital Markets median
Revenue growth (TTM) 17.77% 13.96% 21.02%
EPS growth (last fiscal year) 26.59% 28.43% —
Revenue growth, 5-year CAGR 5.52% 17.86% 18.16%
Net income growth, 5-year CAGR 12.83% 9.13% 0.00%

Health

Metric GS MS Capital Markets median
Debt to equity 2.83 3.34 0.08
Current ratio 0.63 0.79 1.51
Net debt to EBITDA (8.86) (0.46) (0.24)

Dividend

Metric GS MS Capital Markets median
Dividend yield 2.96% 4.12% 2.20%
Payout ratio 0.43 0.54 0.00

Size

Metric GS MS Capital Markets median
Market cap 269.89b 309.40b 724.58m

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