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Goldman Vs Evercore: Which Investment Banking Stock is a Smarter Bet?
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With the investment banking (IB) landscape rapidly evolving, two names are drawing increasing investor attention — Evercore Inc. (EVR - Free Report) and The Goldman Sachs Group Inc. (GS - Free Report) , offering services such as mergers and acquisitions (M&As) advisory, capital markets, and wealth management. While Goldman is a financial giant with a broad range of services, Evercore specializes in independent advisory services.
Despite a favorable long-term outlook for the IB sector, near-term momentum has moderated. Year 2025 began on an optimistic note, fueled by expectations of a business-friendly Trump administration and potential deregulation. However, the proposed tariffs resulted in market volatility and heightened concerns about the potential economic slowdown and inflationary pressures. As a result, the anticipated recovery in M&A activity is projected to unfold in the latter half of the year.
Amid this backdrop, a key question emerges: Which IB stock - Goldman or Evercore -presents the more compelling upside potential?
The Case for Goldman
In global banking and markets, GS maintains its long-standing leadership position in announced and completed M&A. In 2024, Goldman’s IB revenues jumped 24% year over year, driven by a rebound in corporate debt and equity issuances, and deal-making activities. However, given the market uncertainty and a slowdown of M&A activities, its IB revenues declined 8% year over year in the first quarter of 2025.
While the near-term prospects are cloudy due to market turmoil and uncertainty over monetary policy, Goldman’s leading position in deal-making activities indicates enduring client trust. This, along with an increased backlog, will likely convert into higher IB revenues once the operating backdrop improves, giving Goldman a strategic edge over peers.
The company is also making efforts to exit its non-core consumer banking business and sharpen its focus on areas wherein it holds a competitive edge — IB and trading business. In sync with this, Goldman is exiting its consumer finance businesses, including ending its partnership with Apple on the Apple Card and Apple Savings account (may end before the contract runs out in 2030).
In 2024, the company sold its GM credit card business to Barclays and divested its home-improvement lending platform GreenSky, following the earlier sale of its Personal Financial Management unit in 2023. These moves reflect a strategic shift to focus on higher-margin, scalable core businesses like IB and trading.
The Case of Evercore
EVR, though small in size, has established itself as a significant player in the IB space. The company generates most of its revenues from the Investment Banking and Equities business (which constituted 95.9% of total revenues as of March 31, 2025). The metric witnessed a compound annual growth rate (CAGR) of 8.6% from 2017 to 2024, with a rising trend continuing in the first quarter of 2025.
Evercore is strengthening its IB business footprint by actively increasing staff. As of March 31, 2025, the company employed 197 total Investment Banking & Equities senior managing directors. Going forward, the company’s efforts to boost its client base in advisory solutions, diversify revenue sources and expand geographically will support IB revenue growth.
GS & EVR: Price Performance, Valuation & Other Comparisons
Over the past six months, shares of Goldman and Evercore have fallen 0.1% and 28.7%, respectively, against the industry’s growth of 0.8%. This can be attributed to muted near-term IB prospects.
Price Performance
Image Source: Zacks Investment Research
In terms of valuation, Goldman is currently trading at a 12-month forward price-to-earnings (P/E) of 12.72X, higher than its five-year median of 10.17X. Then again, the EVR stock is currently trading at a 12-month forward P/E of 18.06X, which is higher than its five-year median of 12.40X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Evercore is trading at a premium compared with the industry average of 13.73X, while Goldman is trading at a discount. Hence, GS is a better choice for value investors.
Both companies regularly pay out dividends. EVR has a dividend yield of 1.43%, whereas GS has a dividend yield of 2.02%. Both are higher than the industry’s average dividend yield of 1.12%. Here, Goldman also holds an edge over Evercore.
Dividend Yield
Image Source: Zacks Investment Research
How Do Estimates Compare for Goldman & Evercore?
The Zacks Consensus Estimate for GS’s second and third quarter 2025 revenues suggests year-over-year increases of 7.7% and 6%, respectively. Likewise, the consensus estimate for second and third quarter 2025 earnings indicates 13.9% and 20.9% growth, respectively. Earnings estimates for both quarters have been unchanged over the past week.
Estimate Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EVR’s second and third quarter 2025 revenues implies year-over-year decline of 7.1% and 1.2%, respectively. Also, the consensus estimate for second and third quarter 2025 earnings indicates 22.7% and 3.4% decline, respectively. Earnings estimates for both quarters have been unchanged over the past week.
Estimate Revision Trend
Image Source: Zacks Investment Research
GS or EVR: Which IB Stock Should You Bet on?
Despite near-term headwinds in M&A, Goldman remains strategically well-positioned, with increased backlog and a diversified revenue base, along with a leadership position in deal-making activities, giving it resilience that Evercore lacks in times of volatility.
Importantly, GS is streamlining its business, exiting lower-profitable consumer operations and increasing focus on high-return segments like IB and trading. These divestitures are already improving operational focus and profitability.
From a valuation standpoint, Goldman trades at a discount to the industry and Evercore, suggesting that GS offers better risk-reward at current levels. GS’s higher dividend yield, along with steadier earnings growth, adds to its appeal for long-term investors.
At present, Evercore carries a Zacks Rank #5 (Strong Sell), while Goldman has a Zacks Rank #3 (Hold).
Image: Bigstock
Goldman Vs Evercore: Which Investment Banking Stock is a Smarter Bet?
With the investment banking (IB) landscape rapidly evolving, two names are drawing increasing investor attention — Evercore Inc. (EVR - Free Report) and The Goldman Sachs Group Inc. (GS - Free Report) , offering services such as mergers and acquisitions (M&As) advisory, capital markets, and wealth management. While Goldman is a financial giant with a broad range of services, Evercore specializes in independent advisory services.
Despite a favorable long-term outlook for the IB sector, near-term momentum has moderated. Year 2025 began on an optimistic note, fueled by expectations of a business-friendly Trump administration and potential deregulation. However, the proposed tariffs resulted in market volatility and heightened concerns about the potential economic slowdown and inflationary pressures. As a result, the anticipated recovery in M&A activity is projected to unfold in the latter half of the year.
Amid this backdrop, a key question emerges: Which IB stock - Goldman or Evercore -presents the more compelling upside potential?
The Case for Goldman
In global banking and markets, GS maintains its long-standing leadership position in announced and completed M&A. In 2024, Goldman’s IB revenues jumped 24% year over year, driven by a rebound in corporate debt and equity issuances, and deal-making activities. However, given the market uncertainty and a slowdown of M&A activities, its IB revenues declined 8% year over year in the first quarter of 2025.
While the near-term prospects are cloudy due to market turmoil and uncertainty over monetary policy, Goldman’s leading position in deal-making activities indicates enduring client trust. This, along with an increased backlog, will likely convert into higher IB revenues once the operating backdrop improves, giving Goldman a strategic edge over peers.
The company is also making efforts to exit its non-core consumer banking business and sharpen its focus on areas wherein it holds a competitive edge — IB and trading business. In sync with this, Goldman is exiting its consumer finance businesses, including ending its partnership with Apple on the Apple Card and Apple Savings account (may end before the contract runs out in 2030).
In 2024, the company sold its GM credit card business to Barclays and divested its home-improvement lending platform GreenSky, following the earlier sale of its Personal Financial Management unit in 2023. These moves reflect a strategic shift to focus on higher-margin, scalable core businesses like IB and trading.
The Case of Evercore
EVR, though small in size, has established itself as a significant player in the IB space. The company generates most of its revenues from the Investment Banking and Equities business (which constituted 95.9% of total revenues as of March 31, 2025). The metric witnessed a compound annual growth rate (CAGR) of 8.6% from 2017 to 2024, with a rising trend continuing in the first quarter of 2025.
Evercore is strengthening its IB business footprint by actively increasing staff. As of March 31, 2025, the company employed 197 total Investment Banking & Equities senior managing directors. Going forward, the company’s efforts to boost its client base in advisory solutions, diversify revenue sources and expand geographically will support IB revenue growth.
GS & EVR: Price Performance, Valuation & Other Comparisons
Over the past six months, shares of Goldman and Evercore have fallen 0.1% and 28.7%, respectively, against the industry’s growth of 0.8%. This can be attributed to muted near-term IB prospects.
Price Performance
Image Source: Zacks Investment Research
In terms of valuation, Goldman is currently trading at a 12-month forward price-to-earnings (P/E) of 12.72X, higher than its five-year median of 10.17X. Then again, the EVR stock is currently trading at a 12-month forward P/E of 18.06X, which is higher than its five-year median of 12.40X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Evercore is trading at a premium compared with the industry average of 13.73X, while Goldman is trading at a discount. Hence, GS is a better choice for value investors.
Both companies regularly pay out dividends. EVR has a dividend yield of 1.43%, whereas GS has a dividend yield of 2.02%. Both are higher than the industry’s average dividend yield of 1.12%. Here, Goldman also holds an edge over Evercore.
Dividend Yield
Image Source: Zacks Investment Research
How Do Estimates Compare for Goldman & Evercore?
The Zacks Consensus Estimate for GS’s second and third quarter 2025 revenues suggests year-over-year increases of 7.7% and 6%, respectively. Likewise, the consensus estimate for second and third quarter 2025 earnings indicates 13.9% and 20.9% growth, respectively. Earnings estimates for both quarters have been unchanged over the past week.
Estimate Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EVR’s second and third quarter 2025 revenues implies year-over-year decline of 7.1% and 1.2%, respectively. Also, the consensus estimate for second and third quarter 2025 earnings indicates 22.7% and 3.4% decline, respectively. Earnings estimates for both quarters have been unchanged over the past week.
Estimate Revision Trend
Image Source: Zacks Investment Research
GS or EVR: Which IB Stock Should You Bet on?
Despite near-term headwinds in M&A, Goldman remains strategically well-positioned, with increased backlog and a diversified revenue base, along with a leadership position in deal-making activities, giving it resilience that Evercore lacks in times of volatility.
Importantly, GS is streamlining its business, exiting lower-profitable consumer operations and increasing focus on high-return segments like IB and trading. These divestitures are already improving operational focus and profitability.
From a valuation standpoint, Goldman trades at a discount to the industry and Evercore, suggesting that GS offers better risk-reward at current levels. GS’s higher dividend yield, along with steadier earnings growth, adds to its appeal for long-term investors.
At present, Evercore carries a Zacks Rank #5 (Strong Sell), while Goldman has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.