Comprehensive Stock Comparison
Compare The Charles Schwab Corporation (SCHW) vs The Goldman Sachs Group, Inc. (GS) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | GS | 17.0% revenue growth vs SCHW's 1.9% |
| Value | GS | Lower P/E (14.7x vs 16.2x), PEG 1.05 vs 7.08 |
| Quality / Margins | SCHW | 22.9% net margin vs GS's 11.3% |
| Stability / Safety | SCHW | Beta 0.88 vs GS's 1.36, lower leverage |
| Dividends | GS | 1.6% yield, 12-year raise streak, vs SCHW's 1.3% |
| Momentum (1Y) | GS | +40.4% vs SCHW's +21.1% |
| Efficiency (ROA) | SCHW | 232.8% ROA vs GS's 0.9%, ROIC 6.0% vs 1.9% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Charles Schwab is a major financial services firm that operates as a discount brokerage, wealth manager, and bank for individual investors and financial advisors. It generates revenue primarily from net interest income on client cash balances (roughly 50%), asset management fees on its proprietary funds and advisory services, and trading commissions. The company's key competitive advantage is its massive scale in client assets—over $8 trillion—which creates a powerful network effect and allows it to offer low-cost services while maintaining profitability.
Goldman Sachs is a global investment bank and financial services firm that provides investment banking, securities, and investment management services to corporations, governments, and high-net-worth individuals. It generates revenue primarily through investment banking fees (20-25%), trading and market-making in its Global Markets segment (40-45%), and asset management fees from its wealth and investment management divisions (30-35%). The firm's key competitive advantage lies in its elite brand reputation, deep client relationships with the world's largest corporations and governments, and its sophisticated risk management capabilities honed over decades.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
SCHW leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). GS leads in 3 (Valuation Metrics, Total Returns).
Financial Metrics (TTM)
GS is the larger business by revenue, generating $126.9B annually — 4.9x SCHW's $26.0B. SCHW is the more profitable business, keeping 22.9% of every revenue dollar as net income compared to GS's 11.3%.
| Metric | SCHWThe Charles Schwa… | GSThe Goldman Sachs… |
|---|---|---|
| RevenueTrailing 12 months | $26.0B | $126.9B |
| EBITDAEarnings before interest/tax | $12.8B | $23.4B |
| Net IncomeAfter-tax profit | $8.9B | $16.7B |
| Free Cash FlowCash after capex | $9.7B | $15.8B |
| Gross MarginGross profit ÷ Revenue | +75.4% | +41.1% |
| Operating MarginEBIT ÷ Revenue | +29.6% | +14.5% |
| Net MarginNet income ÷ Revenue | +22.9% | +11.3% |
| FCF MarginFCF ÷ Revenue | +7.9% | -12.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +41.5% | +45.8% |
Valuation Metrics
At 21.2x trailing earnings, GS trades at a 33% valuation discount to SCHW's 31.8x P/E. Adjusting for growth (PEG ratio), GS offers better value at 1.51x vs SCHW's 13.91x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | SCHWThe Charles Schwa… | GSThe Goldman Sachs… |
|---|---|---|
| Market CapShares × price | $169.2B | $267.0B |
| Enterprise ValueMkt cap + debt − cash | $172.2B | $701.9B |
| Trailing P/EPrice ÷ TTM EPS | 31.84x | 21.20x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.22x | 14.73x |
| PEG RatioP/E ÷ EPS growth rate | 13.91x | 1.51x |
| EV / EBITDAEnterprise value multiple | 18.87x | 33.76x |
| Price / SalesMarket cap ÷ Revenue | 6.51x | 2.10x |
| Price / BookPrice ÷ Book value/share | 3.61x | 2.35x |
| Price / FCFMarket cap ÷ FCF | 82.52x | — |
Profitability & Efficiency
SCHW delivers a 2.9% return on equity — every $100 of shareholder capital generates $3 in annual profit, vs $13 for GS. SCHW carries lower financial leverage with a 0.93x debt-to-equity ratio, signaling a more conservative balance sheet compared to GS's 5.06x. On the Piotroski fundamental quality scale (0–9), SCHW scores 7/9 vs GS's 4/9, reflecting strong financial health.
| Metric | SCHWThe Charles Schwa… | GSThe Goldman Sachs… |
|---|---|---|
| ROE (TTM)Return on equity | +2.9% | +12.6% |
| ROA (TTM)Return on assets | +2.3% | +0.9% |
| ROICReturn on invested capital | +6.0% | +1.9% |
| ROCEReturn on capital employed | +9.5% | +3.6% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 4 |
| Debt / EquityFinancial leverage | 0.93x | 5.06x |
| Net DebtTotal debt minus cash | $3.1B | $434.8B |
| Cash & Equiv.Liquid assets | $42.1B | $182.1B |
| Total DebtShort + long-term debt | $45.1B | $616.9B |
| Interest CoverageEBIT ÷ Interest expense | 3.05x | 0.31x |
Total Returns (with DRIP)
A $10,000 investment in GS five years ago would be worth $27,615 today (with dividends reinvested), compared to $15,597 for SCHW. Over the past 12 months, GS leads with a +40.4% total return vs SCHW's +21.1%. The 3-year compound annual growth rate (CAGR) favors GS at 36.6% vs SCHW's 8.1% — a key indicator of consistent wealth creation.
| Metric | SCHWThe Charles Schwa… | GSThe Goldman Sachs… |
|---|---|---|
| YTD ReturnYear-to-date | -6.0% | -6.0% |
| 1-Year ReturnPast 12 months | +21.1% | +40.4% |
| 3-Year ReturnCumulative with dividends | +26.2% | +154.7% |
| 5-Year ReturnCumulative with dividends | +56.0% | +176.1% |
| 10-Year ReturnCumulative with dividends | +309.4% | +521.2% |
| CAGR (3Y)Annualised 3-year return | +8.1% | +36.6% |
Risk & Volatility
SCHW is the less volatile stock with a 0.88 beta — it tends to amplify market swings less than GS's 1.36 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | SCHWThe Charles Schwa… | GSThe Goldman Sachs… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.88x | 1.36x |
| 52-Week HighHighest price in past year | $107.50 | $984.70 |
| 52-Week LowLowest price in past year | $65.88 | $439.38 |
| % of 52W HighCurrent price vs 52-week peak | +88.6% | +87.3% |
| RSI (14)Momentum oscillator 0–100 | 48.7 | 52.2 |
| Avg Volume (50D)Average daily shares traded | 9.0M | 2.0M |
Analyst Outlook
Wall Street rates SCHW as "Buy" and GS as "Hold". Consensus price targets imply 29.0% upside for SCHW (target: $123) vs 8.6% for GS (target: $934). For income investors, GS offers the higher dividend yield at 1.57% vs SCHW's 1.30%.
| Metric | SCHWThe Charles Schwa… | GSThe Goldman Sachs… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $122.78 | $933.67 |
| # AnalystsCovering analysts | 50 | 54 |
| Dividend YieldAnnual dividend ÷ price | +1.3% | +1.6% |
| Dividend StreakConsecutive years of raises | 0 | 12 |
| Dividend / ShareAnnual DPS | $1.24 | $13.48 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +3.8% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| The Charles Schwab … (SCHW) | 100 | 250.52 | +150.5% |
| The Goldman Sachs G… (GS) | 100 | 451.77 | +351.8% |
The Goldman Sachs G… (GS) returned +176% over 5 years vs The Charles Schwab … (SCHW)'s +56%. A $10,000 investment in GS 5 years ago would be worth $27,615 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| The Charles Schwab … (SCHW) | $6.5B | $26.0B | +299.9% |
| The Goldman Sachs G… (GS) | $39.2B | $126.9B | +223.8% |
The Charles Schwab Corporation's revenue grew from $6.5B (2015) to $26.0B (2024) — a 16.7% CAGR. The Goldman Sachs Group, Inc.'s revenue grew from $39.2B (2015) to $126.9B (2024) — a 13.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| The Charles Schwab … (SCHW) | 22.3% | 22.9% | +2.7% |
| The Goldman Sachs G… (GS) | 15.5% | 11.3% | -27.5% |
The Charles Schwab Corporation's net margin went from 22% (2015) to 23% (2024). The Goldman Sachs Group, Inc.'s net margin went from 16% (2015) to 11% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| The Charles Schwab … (SCHW) | 31.9 | 24.8 | -22.3% |
| The Goldman Sachs G… (GS) | 28.3 | 14.1 | -50.2% |
The Charles Schwab Corporation has traded in a 17x–32x P/E range over 8 years; current trailing P/E is ~32x. The Goldman Sachs Group, Inc. has traded in a 6x–28x P/E range over 8 years; current trailing P/E is ~21x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| The Charles Schwab … (SCHW) | 1.03 | 2.99 | +190.3% |
| The Goldman Sachs G… (GS) | 12.14 | 40.54 | +233.9% |
The Charles Schwab Corporation's EPS grew from $1.03 (2015) to $2.99 (2024) — a 13% CAGR. The Goldman Sachs Group, Inc.'s EPS grew from $12.14 (2015) to $40.54 (2024) — a 14% CAGR.
Chart 6Free Cash Flow — 5 Years
The Charles Schwab Corporation generated $2B FCF in 2024 (+71% vs 2021). The Goldman Sachs Group, Inc. generated $-15B FCF in 2024 (-1038% vs 2021).
SCHW vs GS: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SCHW or GS a better buy right now?
The Goldman Sachs Group, Inc. (GS) offers the better valuation at 21.2x trailing P/E (14.7x forward), making it the more compelling value choice. Analysts rate The Charles Schwab Corporation (SCHW) a "Buy" — based on 50 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — SCHW or GS?
On trailing P/E, The Goldman Sachs Group, Inc. (GS) is the cheapest at 21.2x versus The Charles Schwab Corporation at 31.8x. On forward P/E, The Goldman Sachs Group, Inc. is actually cheaper at 14.7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Goldman Sachs Group, Inc. wins at 1.05x versus The Charles Schwab Corporation's 7.08x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — SCHW or GS?
Over the past 5 years, The Goldman Sachs Group, Inc. (GS) delivered a total return of +176.1%, compared to +56.0% for The Charles Schwab Corporation (SCHW). A $10,000 investment in GS five years ago would be worth approximately $28K today (assuming dividends reinvested). Over 10 years, the gap is even starker: GS returned +521.2% versus SCHW's +309.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — SCHW or GS?
By beta (market sensitivity over 5 years), The Charles Schwab Corporation (SCHW) is the lower-risk stock at 0.88β versus The Goldman Sachs Group, Inc.'s 1.36β — meaning GS is approximately 55% more volatile than SCHW relative to the S&P 500. On balance sheet safety, The Charles Schwab Corporation (SCHW) carries a lower debt/equity ratio of 93% versus 5% for The Goldman Sachs Group, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — SCHW or GS?
The Charles Schwab Corporation (SCHW) is the more profitable company, earning 22.9% net margin versus 11.3% for The Goldman Sachs Group, Inc. — meaning it keeps 22.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SCHW leads at 29.6% versus 14.5% for GS. At the gross margin level — before operating expenses — SCHW leads at 75.4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is SCHW or GS more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, The Goldman Sachs Group, Inc. (GS) is the more undervalued stock at a PEG of 1.05x versus The Charles Schwab Corporation's 7.08x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, The Goldman Sachs Group, Inc. (GS) trades at 14.7x forward P/E versus 16.2x for The Charles Schwab Corporation — 1.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SCHW: 29.0% to $122.78.
07Which pays a better dividend — SCHW or GS?
All stocks in this comparison pay dividends. The Goldman Sachs Group, Inc. (GS) offers the highest yield at 1.6%, versus 1.3% for The Charles Schwab Corporation (SCHW).
08Is SCHW or GS better for a retirement portfolio?
For long-horizon retirement investors, The Charles Schwab Corporation (SCHW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.88), 1.3% yield, +309.4% 10Y return). Both have compounded well over 10 years (SCHW: +309.4%, GS: +521.2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between SCHW and GS?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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