The Goldman Sachs Group (NYSE:GS) and Cowen (NASDAQ:COWN) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.
Profitability
This table compares The Goldman Sachs Group and Cowen's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
The Goldman Sachs Group | 16.65% | 11.23% | 0.83% |
Cowen | 9.49% | 21.67% | 4.19% |
Dividends
The Goldman Sachs Group pays an annual dividend of $5.00 per share and has a dividend yield of 1.5%. Cowen pays an annual dividend of $0.32 per share and has a dividend yield of 0.8%. The Goldman Sachs Group pays out 23.8% of its earnings in the form of a dividend. Cowen pays out 14.5% 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 1 consecutive years and Cowen has increased its dividend for 1 consecutive years.
Insider and Institutional Ownership
68.1% of The Goldman Sachs Group shares are owned by institutional investors. Comparatively, 99.2% of Cowen shares are owned by institutional investors. 0.6% of The Goldman Sachs Group shares are owned by insiders. Comparatively, 4.4% of Cowen shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
The Goldman Sachs Group has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Cowen has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.
Earnings and Valuation
This table compares The Goldman Sachs Group and Cowen's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
The Goldman Sachs Group | $53.92 billion | 2.17 | $8.47 billion | $21.03 | 16.10 |
Cowen | $1.05 billion | 0.96 | $24.63 million | $2.21 | 17.09 |
The Goldman Sachs Group has higher revenue and earnings than Cowen. The Goldman Sachs Group is trading at a lower price-to-earnings ratio than Cowen, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for The Goldman Sachs Group and Cowen, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
The Goldman Sachs Group | 1 | 5 | 15 | 0 | 2.67 |
Cowen | 0 | 0 | 5 | 0 | 3.00 |
The Goldman Sachs Group presently has a consensus target price of $344.2857, suggesting a potential upside of 1.69%. Cowen has a consensus target price of $35.20, suggesting a potential downside of 6.78%. Given The Goldman Sachs Group's higher probable upside, equities research analysts plainly believe The Goldman Sachs Group is more favorable than Cowen.
Summary
The Goldman Sachs Group beats Cowen on 9 of the 16 factors compared between the two stocks.