Quick verdict: GS vs RY in 2026

Royal Bank of Canada (RY) holds an overall edge in this gs vs ry stock comparison 2026, leading on 7 of 10 comparable metrics in our scorecard, demonstrating stronger growth, better net margins, and significant DCF upside. While GS appears cheaper on traditional valuation ratios like P/E and P/B and has a positive analyst target upside, RY presents a more robust fundamental profile across several key performance indicators. Investors weighing should i buy gs or ry stock 2026 should consider RY for its stronger operational performance and intrinsic value potential, despite its negative analyst price target. Not investment advice.

GS vs RY: key metrics side by side

Full side-by-side comparison of GS and RY across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-04.

GS vs RY valuation comparison

When considering GS vs RY valuation in 2026, The Goldman Sachs Group (GS) appears to offer a slightly more attractive entry point based on traditional valuation multiples. GS currently trades at a P/E ratio of 15.53x, which is lower than Royal Bank of Canada (RY)’s P/E of 16.25x. Similarly, GS’s Price-to-Book (P/B) ratio stands at 2.28x, making it marginally cheaper than RY at 2.44x. These metrics suggest that GS is trading at a slightly lower multiple of its earnings and book value compared to its Canadian counterpart, despite having a larger market capitalization of $274.11B versus RY’s $250.75B.

However, a deeper dive into their intrinsic value through a Discounted Cash Flow (DCF) model reveals a different perspective. While GS’s DCF calculation suggests a -5.4% downside from its current price of $923.71, RY’s DCF analysis indicates a significant +26.3% upside from its current price of $179.54, with a DCF value of $226.76. This suggests that RY may be fundamentally undervalued by the market, offering substantial potential for capital appreciation based on its future cash flows, even if its P/E and P/B ratios are slightly higher than GS. Therefore, while GS looks ‘cheaper’ on multiples, RY could offer more ‘value’ from an intrinsic standpoint.

GS vs RY growth comparison

In the gs vs ry stock comparison 2026 regarding growth, Royal Bank of Canada (RY) demonstrates stronger momentum compared to The Goldman Sachs Group (GS). RY reported a year-over-year revenue growth of +2.1%, reaching a total revenue of $137.36B. This positive growth indicates healthy business expansion and market share gains, which is a desirable trait for investors seeking increasing returns. The Royal Bank of Canada’s steady growth trajectory suggests its diversified operations and strong presence are contributing to consistent top-line expansion.

Conversely, The Goldman Sachs Group (GS) recorded a revenue growth of -1.4% year-over-year, with total revenue at $125.10B. This slight contraction in revenue could signal challenges in its operating environment, competitive pressures, or strategic shifts impacting its top line. While a single year’s negative growth doesn’t define a company’s long-term potential, it does highlight that RY currently possesses stronger upward momentum in terms of revenue generation. Investors focused on a company’s ability to consistently grow its revenue base would likely find RY’s performance more compelling in this specific gs vs ry growth comparison.

GS vs RY profitability

Analyzing the profitability of GS vs RY reveals distinct strengths for each financial institution. Royal Bank of Canada (RY) shows a superior net margin of 20.88%, significantly outperforming The Goldman Sachs Group (GS)’s net margin of 16.31%. This indicates that RY is more effective at converting its revenue into actual profit for shareholders, suggesting tighter cost control or a more profitable business mix after all expenses, including taxes, are accounted for. Furthermore, RY’s Free Cash Flow (FCF) yield stands at a healthy 8.32%, implying strong cash generation capabilities, whereas GS reports a negative FCF yield of -15.29%, suggesting challenges in converting earnings into free cash.

However, when examining operational efficiency before interest, taxes, depreciation, and amortization, The Goldman Sachs Group (GS) exhibits a much higher EBITDA margin of 22.51% compared to Royal Bank of Canada (RY)’s 7.61%. This suggests that GS is exceptionally efficient at its core operations, potentially benefiting from its investment banking and asset management business models which can have different cost structures than traditional commercial banking. Unfortunately, the Return on Equity (ROE) metric is not available for either company, preventing a direct comparison of how efficiently they generate profits from shareholders’ equity. Despite GS’s operational efficiency, RY’s stronger net margin and positive FCF yield ultimately suggest it generates more cash overall from its operations.

Analyst ratings: GS vs RY

Analyst sentiment for GS vs RY presents an interesting divergence between consensus and price targets. For The Goldman Sachs Group (GS), 55 analysts cover the stock, with 40.0% issuing a “Buy” rating. The consensus rating from these analysts is “Hold,” yet their average target price is $995.89, representing a positive upside of +7.8% from its current price of $923.71. This suggests that while analysts are generally cautious with a “Hold” consensus, they still see a modest potential for the stock to appreciate in value over the next year.

In contrast, Royal Bank of Canada (RY) is covered by 29 analysts, with a slightly higher percentage of “Buy” ratings at 41.4%. Despite this marginally stronger buy conviction, the overall consensus is also a “Hold.” More notably, the average analyst target price for RY is $124.85, which implies a significant downside of -30.5% from its current price of $179.54. This stark difference in target price upside suggests that while analysts might favor RY slightly more in terms of ‘buy’ ratings, their price projections indicate concerns about its current valuation or future performance, contrasting sharply with its strong DCF upside.

Should I buy GS or RY stock in 2026?

For investors prioritizing growth, considering should i buy gs or ry stock 2026 involves looking at their top-line expansion and overall financial health. Royal Bank of Canada (RY) presents a more compelling case with a positive revenue growth of +2.1% year-over-year, signaling a healthy and expanding business. This is in contrast to The Goldman Sachs Group (GS), which recorded a -1.4% revenue decline. RY also boasts superior net margins (20.88% vs 16.31%) and a positive Free Cash Flow (FCF) yield of 8.32% compared to GS’s negative -15.29%. These metrics collectively suggest that RY is not only growing but also more efficiently converting its sales into profit and cash, making it potentially more attractive for growth-oriented portfolios.

When evaluating gs vs ry fundamentals and valuation for value investors, the choice is less straightforward. GS has a lower P/E ratio of 15.53x and a lower P/B ratio of 2.28x, which traditionally suggests it is ‘cheaper’ on paper. However, RY’s Discounted Cash Flow (DCF) model indicates a substantial +26.3% upside, implying it is undervalued based on its intrinsic worth, whereas GS shows a -5.4% DCF downside. This dichotomy highlights that while GS may appear to be a value play on multiples, RY might offer greater long-term intrinsic value appreciation. Value investors must decide whether to prioritize current trading multiples or long-term intrinsic value potential when deciding should i buy gs or ry stock 2026.

For income-focused investors, the dividend yields of both companies are quite modest. RY offers a slightly higher dividend yield of 0.03% compared to GS’s 0.02%. While neither stock would be considered a primary choice for a high-dividend portfolio, RY marginally outperforms GS in this aspect, offering a slightly better return for those seeking regular payouts. When considering should i buy gs or ry stock 2026 purely for income, the difference is minimal, and other factors like stability and growth would likely play a more significant role in the decision-making process. This is not investment advice; always conduct your own thorough research.

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