Head to Head Survey: Goldman Sachs Group (NYSE:GS) vs. Capital Financial (NYSE:CPFH)

Goldman Sachs Group (NYSE:GS) and Capital Financial (OTCMKTS:CPFH) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Dividends

Goldman Sachs Group pays an annual dividend of $5.00 per share and has a dividend yield of 2.1%. Capital Financial pays an annual dividend of $50.00 per share and has a dividend yield of 5.5%. Goldman Sachs Group pays out 23.8% of its earnings in the form of a dividend. Goldman Sachs Group has raised its dividend for 8 consecutive years.

Insider and Institutional Ownership

69.5% of Goldman Sachs Group shares are held by institutional investors. 1.4% of Goldman Sachs Group shares are held by insiders. Comparatively, 54.0% of Capital Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Goldman Sachs Group and Capital Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Goldman Sachs Group 15.70% 10.27% 0.87%
Capital Financial N/A N/A N/A

Valuation & Earnings

This table compares Goldman Sachs Group and Capital Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Goldman Sachs Group $53.92 billion 1.57 $8.47 billion $21.03 11.33
Capital Financial $15.07 million N/A -$290,000.00 N/A N/A

Goldman Sachs Group has higher revenue and earnings than Capital Financial.

Analyst Ratings

This is a summary of recent recommendations and price targets for Goldman Sachs Group and Capital Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Goldman Sachs Group 0 6 12 0 2.67
Capital Financial 0 0 0 0 N/A

Goldman Sachs Group currently has a consensus price target of $268.38, suggesting a potential upside of 12.60%. Given Goldman Sachs Group’s higher possible upside, equities analysts plainly believe Goldman Sachs Group is more favorable than Capital Financial.

Risk & Volatility

Goldman Sachs Group has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Capital Financial has a beta of -1.76, indicating that its stock price is 276% less volatile than the S&P 500.

Summary

Goldman Sachs Group beats Capital Financial on 11 of the 14 factors compared between the two stocks.

Goldman Sachs Group Company Profile

The Goldman Sachs Group, Inc. operates as an investment banking, securities, and investment management company worldwide. It operates in four segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, spin-offs, and risk management; and underwriting services, such as debt and equity underwriting of public offerings and private placements of various securities and other financial instruments, as well as derivative transactions with public and private sector clients. The Institutional Client Services segment is involved in client execution activities related to making markets in cash and derivative instruments for interest rate products, credit products, mortgages, currencies, commodities, and equities; and provision of securities services comprising financing, securities lending, and other brokerage services, as well as the marketing and clearing of client transactions on various stock, options, and futures exchanges. The Investing & Lending segment invests in and originates longer-term loans; and makes investments in debt securities and loans, public and private equity securities, and infrastructure and real estate entities, as well as provides unsecured and secured loans through its digital platforms. The Investment Management segment offers investment management services; and wealth advisory services consisting of portfolio management, financial planning and counseling, and brokerage and other transaction services. The company serves corporations, financial institutions, governments, and individuals. The Goldman Sachs Group, Inc. was founded in 1869 and is headquartered in New York, New York.

Capital Financial Company Profile

Capital Financial Holdings, Inc., a full-service brokerage firm, provides investment products and services to independent investment representatives, financial planners, and investment advisors in the United States. It offers mutual funds, insurance products, and various other securities, as well as investment advisory services. The company was formerly known as Integrity Mutual Funds, Inc. and changed its name to Capital Financial Holdings, Inc. in May 2009. Capital Financial Holdings, Inc. was founded in 1987 and is headquartered in Minot, North Dakota.

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