SCHW vs. GS, MS, BLK, IBKR, RY, C, MUFG, PGR, HSBC, and CB
Should you be buying Charles Schwab stock or one of its competitors? The main competitors of Charles Schwab include The Goldman Sachs Group (GS), Morgan Stanley (MS), BlackRock (BLK), Interactive Brokers Group (IBKR), Royal Bank of Canada (RY), Citigroup (C), Mitsubishi UFJ Financial Group (MUFG), Progressive (PGR), HSBC (HSBC), and Chubb (CB). These companies are all part of the "finance" sector.
The Goldman Sachs Group (NYSE:GS) and Charles Schwab (NYSE:SCHW) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, community ranking, media sentiment, analyst recommendations, institutional ownership, dividends, valuation and profitability.
71.2% of The Goldman Sachs Group shares are owned by institutional investors. Comparatively, 84.4% of Charles Schwab shares are owned by institutional investors. 0.5% of The Goldman Sachs Group shares are owned by insiders. Comparatively, 6.6% of Charles Schwab shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
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.
The Goldman Sachs Group currently has a consensus target price of $440.57, indicating a potential downside of 3.88%. Charles Schwab has a consensus target price of $75.12, indicating a potential upside of 4.16%. Given The Goldman Sachs Group's higher probable upside, analysts clearly believe Charles Schwab is more favorable than The Goldman Sachs Group.
The Goldman Sachs Group has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Charles Schwab has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
The Goldman Sachs Group pays an annual dividend of $11.00 per share and has a dividend yield of 2.4%. Charles Schwab pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. The Goldman Sachs Group pays out 43.0% of its earnings in the form of a dividend. Charles Schwab pays out 41.8% 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 raised its dividend for 12 consecutive years and Charles Schwab has raised its dividend for 2 consecutive years. The Goldman Sachs Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, Charles Schwab had 34 more articles in the media than The Goldman Sachs Group. MarketBeat recorded 79 mentions for Charles Schwab and 45 mentions for The Goldman Sachs Group. Charles Schwab's average media sentiment score of 0.61 beat The Goldman Sachs Group's score of 0.45 indicating that The Goldman Sachs Group is being referred to more favorably in the media.
The Goldman Sachs Group received 388 more outperform votes than Charles Schwab when rated by MarketBeat users. However, 63.24% of users gave Charles Schwab an outperform vote while only 60.18% of users gave The Goldman Sachs Group an outperform vote.
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 19.25% beat Charles Schwab's return on equity.
Summary
Charles Schwab beats The Goldman Sachs Group on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SCHW and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This 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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