STT vs GS

For growth investors, State Street Corporation (STT) is the stronger pick with 19.

6% revenue growth year-over-year, versus 17. 0% for The Goldman Sachs Group, Inc. (GS). State Street Corporation (STT) offers the better valuation at 18. 4x trailing P/E (12. 2x forward), making it the more compelling value choice. Analysts rate State Street Corporation (STT) a "Buy" — based on 37 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.

On trailing P/E, State Street Corporation (STT) is the cheapest at 18.

4x versus The Goldman Sachs Group, Inc. at 23. 1x. On forward P/E, State Street Corporation is actually cheaper at 12. 2x. 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. 13x versus State Street Corporation's 1. 38x — a reasonable growth-adjusted valuation.

Over the past 5 years, The Goldman Sachs Group, Inc.

(GS) delivered a total return of +171. 1%, compared to +88. 8% for State Street Corporation (STT). Over 10 years, the gap is even starker: GS returned +536. 1% versus STT's +191. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), State Street Corporation (STT) is the lower-risk stock at 1.

19β versus The Goldman Sachs Group, Inc. 's 1. 47β — meaning GS is approximately 24% more volatile than STT relative to the S&P 500. On balance sheet safety, State Street Corporation (STT) carries a lower debt/equity ratio of 145% versus 5% for The Goldman Sachs Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), State Street Corporation (STT) is pulling ahead at 19.

6% versus 17. 0% for The Goldman Sachs Group, Inc. (GS). On earnings-per-share growth, the picture is similar: The Goldman Sachs Group, Inc. grew EPS 77. 3% year-over-year, compared to 47. 1% for State Street Corporation. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

State Street Corporation (STT) is the more profitable company, earning 12.

2% net margin versus 11. 3% for The Goldman Sachs Group, Inc. — meaning it keeps 12. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: STT leads at 15. 5% versus 14. 5% for GS. At the gross margin level — before operating expenses — STT leads at 58. 5%, 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.

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. 13x versus State Street Corporation's 1. 38x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, State Street Corporation (STT) trades at 12. 2x forward P/E versus 15. 8x for The Goldman Sachs Group, Inc. — 3. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GS: 6. 2% to $995. 89.

All stocks in this comparison pay dividends.

State Street Corporation (STT) offers the highest yield at 2. 3%, versus 1. 4% for The Goldman Sachs Group, Inc. (GS).

For long-horizon retirement investors, State Street Corporation (STT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

19), 2. 3% yield, +191. 1% 10Y return). Both have compounded well over 10 years (STT: +191. 1%, GS: +536. 1%), 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.

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.