The Goldman Sachs Group, Inc. (GS) vs The Charles Schwab Corporation (SCHW)

The Goldman Sachs Group, Inc. and The Charles Schwab Corporation are both Capital Markets companies. The Goldman Sachs Group, Inc. is the larger, with a market value of $269.9B against $171.9B — 1.6× the size. The Goldman Sachs Group, Inc. trades at the lower P/E: 14.3× against 17.9×. The Charles Schwab Corporation grew revenue faster over the last twelve months: 20.3% against 17.8%. The Charles Schwab Corporation has the higher net margin (37.4% vs 30.3%) and the higher return on invested capital (0.00% vs 0.00%). Both pay a dividend; The Goldman Sachs Group, Inc. yields more (2.96% vs 1.73%). Across the 20 metrics below, The Charles Schwab Corporation leads on 12 and The Goldman Sachs Group, Inc. on 8.

Valuation

Metric GS SCHW Capital Markets median
P/E 14.25 17.94 15.78
P/S 4.24 6.60 2.32
P/B 2.56 3.91 1.89
Price to free cash flow n/m 15.93 6.25
EV/EBITDA 2.67 7.41 8.87
EV/Sales 1.14 4.65 2.28
Earnings yield 7.02% 5.57% (3.77%)
Free cash flow yield (14.57%) 6.28% (1.49%)

Profitability

Metric GS SCHW Capital Markets median
Gross margin 100.00% 100.00% 62.80%
Operating margin 39.72% 54.98% 0.00%
Net margin 30.28% 37.36% (0.55%)
Free cash flow margin (61.77%) 41.46% 0.00%
Return on equity 18.34% 22.45% 0.00%
Return on assets 1.02% 1.99% 0.00%
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric GS SCHW Capital Markets median
Revenue growth (TTM) 17.77% 20.34% 21.02%
EPS growth (last fiscal year) 26.59% 55.52% —
Revenue growth, 5-year CAGR 5.52% 15.39% 18.16%
Net income growth, 5-year CAGR 12.83% 22.57% 0.00%

Health

Metric GS SCHW Capital Markets median
Debt to equity 2.83 0.45 0.08
Current ratio 0.63 0.64 1.51
Net debt to EBITDA (8.86) (4.52) (0.24)

Dividend

Metric GS SCHW Capital Markets median
Dividend yield 2.96% 1.73% 2.20%
Payout ratio 0.43 0.27 0.00

Size

Metric GS SCHW Capital Markets median
Market cap 269.89b 171.90b 724.58m

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