Goldman Sachs vs. JPMorgan Chase: Which Bank Stock Should You Invest In?

Compare these big bank stocks for your portfolio.

  • Both Goldman Sachs and JPMorgan Chase reported better-than-expected earnings in late 2018.
  • Goldman Sachs is growing faster and provides better value at its current price versus Chase.
  • JPMorgan Chase has better margins, a bigger dividend and a higher return on equity than Goldman.

Some major earnings beats helped the market rebound on Tuesday, Oct. 16, 2018, with two of the most notable coming from mega-banks Goldman Sachs and JPMorgan Chase. But if you’re thinking the recent swoon from tech stocks means it’s time to start exploring investments in the financial sector, which of these big banks is right for you?

Click to find out what happened after Warren Buffett invested $5 billion in Goldman Sachs during the 2008 crisis.

Goldman Sachs vs. JPMorgan Chase Stock Comparison

Here’s a closer look inside the question of Goldman Sachs vs. JPMorgan Chase:

Goldman Sachs JPMorgan Chase
Share Price $221.70 $108.62
Market Cap $83.7 billion $365 billion
2017 Revenue $32.1 billion $93.7 billion
2017 Profits $4.3 billion $24.4 billion
2017 Revenue Growth 4.8% 3.7%
2017 Profit Growth -42.1% -1.2%
GOBankingRates’ Evaluation $128.5 billion $423.9 billion
P/E Ratio 17.7 14.54
P/S Ratio 2.35 3.59
Stock Gain/Loss Last Month -3.29% -3.63%
Stock Gain/Loss Last Year -5.86% 15.91%

Find Out: 7 Best Long-Term Investments

Why You Might Pick Goldman Sachs Stock:

  • With a PEG ratio of just 0.28 to JPMorgan’s 1.79, Goldman Sachs would appear to be a better value based on its earnings and growth rate.
  • Based on a significantly lower forward P/E ratio, P/S ratio and P/B ratio, Goldman Sachs looks to be the better value buy, on the whole.
  • Goldman Sachs posted higher revenue growth for 2017.
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Why You Might Pick JPMorgan Chase Stock:

  • The dividend yield of 2.99 percent is almost double that of Goldman Sachs’ 1.5 percent.
  • A return on equity of 11.46 percent is also nearly double that of Goldman Sachs (6.39 percent), indicating Chase management might be more effective in leveraging assets.
  • Chase’s profit margin of 29.15 percent is, once again, nearly double that of Goldman Sachs at 15.72 percent.

Read: What You Should Do When the Stock Market Tanks

The Final Word on GS vs. JPM

JPMorgan Chase might be the much larger company and do a much more efficient job of turning its considerable resources into profits, but Goldman Sachs presents a stronger value and growth case if you’re interested in investing there.

Click through to read more about the fastest-growing industries you should consider investing in.

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This article is produced for informational purposes only and is not a recommendation to buy or sell any securities. Investing comes with risk to loss of principal. Please always conduct your own research and consider your investment decisions carefully.

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About the Author

Joel Anderson

Joel Anderson is a business and finance writer with over a decade of experience writing about the wide world of finance. Based in Los Angeles, he specializes in writing about the financial markets, stocks, macroeconomic concepts and focuses on helping make complex financial concepts digestible for the retail investor.

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