Greenhill & Co., Inc. (NYSE:GHL) and The Goldman Sachs Group (NYSE:GS) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Insider and Institutional Ownership
62.1% of Greenhill & Co., Inc. shares are owned by institutional investors. Comparatively, 68.1% of The Goldman Sachs Group shares are owned by institutional investors. 25.4% of Greenhill & Co., Inc. shares are owned by company insiders. Comparatively, 0.6% of The Goldman Sachs Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Greenhill & Co., Inc. and The Goldman Sachs Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Greenhill & Co., Inc. | 1 | 1 | 1 | 0 | 2.00 |
The Goldman Sachs Group | 1 | 5 | 15 | 0 | 2.67 |
Greenhill & Co., Inc. currently has a consensus price target of $16.50, suggesting a potential downside of 10.81%. The Goldman Sachs Group has a consensus price target of $349.1429, suggesting a potential upside of 5.20%. Given The Goldman Sachs Group's stronger consensus rating and higher probable upside, analysts clearly believe The Goldman Sachs Group is more favorable than Greenhill & Co., Inc..
Valuation & Earnings
This table compares Greenhill & Co., Inc. and The Goldman Sachs Group's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Greenhill & Co., Inc. | $301.01 million | 1.20 | $10.98 million | $0.50 | 37.00 |
The Goldman Sachs Group | $53.92 billion | 2.13 | $8.47 billion | $21.03 | 15.78 |
The Goldman Sachs Group has higher revenue and earnings than Greenhill & Co., Inc.. The Goldman Sachs Group is trading at a lower price-to-earnings ratio than Greenhill & Co., Inc., indicating that it is currently the more affordable of the two stocks.
Dividends
Greenhill & Co., Inc. pays an annual dividend of $0.20 per share and has a dividend yield of 1.1%. The Goldman Sachs Group pays an annual dividend of $5.00 per share and has a dividend yield of 1.5%. Greenhill & Co., Inc. pays out 40.0% of its earnings in the form of a dividend. The Goldman Sachs Group pays out 23.8% 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. Greenhill & Co., Inc. has increased its dividend for 1 consecutive years and The Goldman Sachs Group has increased its dividend for 1 consecutive years. The Goldman Sachs Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Greenhill & Co., Inc. and The Goldman Sachs Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Greenhill & Co., Inc. | -2.80% | -38.14% | -1.60% |
The Goldman Sachs Group | 16.65% | 11.23% | 0.83% |
Volatility & Risk
Greenhill & Co., Inc. has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, The Goldman Sachs Group has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.
Summary
The Goldman Sachs Group beats Greenhill & Co., Inc. on 15 of the 16 factors compared between the two stocks.