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Goldman vs. Evercore: Which Investment Banking Stock Is a Smarter Bet?
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Key Takeaways
Goldman is streamlining by exiting consumer banking, and emphasizing asset and wealth management.
Evercore is expanding its IB reach with senior hires and strong revenue growth momentum.
GS trades at a discount with a higher dividend yield, while EVR carries a premium valuation.
Both The Goldman Sachs Group Inc. (GS - Free Report) and Evercore Inc. (EVR - Free Report) are leading U.S. investment banks, competing in mergers and acquisitions (M&A) advisory and dealmaking. Goldman represents the scale and diversification of a bulge-bracket bank, while Evercore offers the high-margin, focused model of a boutique advisory firm.
Although 2025 began with optimism, market sentiment briefly dipped following Trump’s tariff plans announced on 'Liberation Day'. M&A have since regained momentum and are expected to remain robust in the second half of 2025, driven by stronger stock valuations, pent-up demand, and corporates’ pursuit of greater scale and competitiveness. This outlook is further supported by regulatory shifts under the Trump administration, with the Federal Reserve moving to loosen “well-managed” requirements and streamline approval processes, creating more conducive conditions for consolidation.
Amid this backdrop, a key question emerges: which IB stock — Goldman or Evercore — presents the more compelling upside potential?
The Case for GS
In global banking and markets, Goldman maintains its long-standing leadership position in announced and completed M&A. GS’s IB revenues increased 8% year over year in the first six months of 2025. A strong deal pipeline and Goldman’s leadership position signal further upside as macro conditions improve. 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.
Goldman's streamlining effort has been underway for some time, driven largely by the firm's retreat from its underperforming consumer banking ventures. The company is exiting its non-core consumer banking business and sharpening its focus on Global Banking and Markets, and Asset and Wealth Management (“AWM”). GS is placing more emphasis on its AWM division, viewing it as a more stable revenue source. The company is reportedly exploring acquisitions to expand its AWM footprint.
During the second-quarter earnings call, management highlighted the critical role of scale in growing this business. CEO David Solomon noted, “There’s got to be a strategic fit in terms of things that we’re prioritizing in the growth of our asset and wealth management franchise.”
The Case of EVR
Evercore, 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 94% of total revenues as of June 30, 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 half of 2025.
The company is strengthening its IB business footprint by actively increasing staff. As of June 30, 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 likely support IB revenue growth.
GS & EVR: Price Performance, Valuation & Other Comparisons
So far this year, shares of Goldman and Evercore have risen 31.7% and 17.1%, respectively, against the industry’s growth of 26.8%.
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 14.99X, higher than its five-year median of 10.24X. The EVR stock, alternatively, is currently trading at a 12-month forward P/E of 19.64X, which is higher than its five-year median of 12.49X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Evercore is trading at a premium compared with the industry average of 14.79X. Goldman is trading at a discount compared with the industry. Hence, GS is a better choice for value investors.
Both companies regularly pay out dividends. EVR has a dividend yield of 1.03% while GS has a dividend yield of 1.60%. Both are higher than the industry’s average dividend yield of 1%. Here also, Goldman holds an edge over Evercore.
Dividend Yield
Image Source: Zacks Investment Research
How Do Estimates Compare for GS & EVR?
The Zacks Consensus Estimate for GS’s 2025 and 2026 revenues implies year-over-year rallies of 6.3% and 6.5%, respectively. Likewise, the consensus estimate for 2025 and 2026 earnings indicates 12.6% and 14.9% respectively. Earnings estimates for both years have been revised upward over the past 60 days.
Earnings Estimates
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EVR’s 2025 and 2026 sales suggests year-over-year increases of 15.9% and 27.1%, respectively. Also, the consensus estimate for 2025 and 2026 earnings indicates a 31.7% and 50.8% jump, respectively. Earnings estimates for both years have been revised upward over the past 60 days.
Earnings Estimates
Image Source: Zacks Investment Research
GS or EVR: Which Stock to Bet on?
Goldman remains strategically well-positioned when weighing against Evercore. EVR has built an enviable franchise in M&A advisory, posting strong earnings momentum and expanding aggressively. Its earnings outlook for 2025 and 2026 is impressive, with double-digit top-line growth and an ambitious hiring strategy that should extend its market presence. However, investors must contend with its high valuation premium, narrower revenue base, and greater sensitivity to swings in the dealmaking cycle.
Goldman, conversely, offers a more balanced and resilient investment case. The bank’s leadership in a global M&A and diversified model and sharpened strategic focus give it greater staying power. The pivot away from underperforming consumer ventures and the renewed emphasis on AWM provide stability through recurring revenues, helping cushion volatility in the investment banking cycle. This focus on scale and long-term growth is backed by a solid deal pipeline and a rising backlog that should translate into revenue strength as macro conditions improve.
From a valuation perspective and dividend yield, the picture tilts decisively in Goldman’s favor. For those seeking a durable, long-term investment in the IB sector, GS stands out as the smarter bet.
Image: Bigstock
Goldman vs. Evercore: Which Investment Banking Stock Is a Smarter Bet?
Key Takeaways
Both The Goldman Sachs Group Inc. (GS - Free Report) and Evercore Inc. (EVR - Free Report) are leading U.S. investment banks, competing in mergers and acquisitions (M&A) advisory and dealmaking. Goldman represents the scale and diversification of a bulge-bracket bank, while Evercore offers the high-margin, focused model of a boutique advisory firm.
Although 2025 began with optimism, market sentiment briefly dipped following Trump’s tariff plans announced on 'Liberation Day'. M&A have since regained momentum and are expected to remain robust in the second half of 2025, driven by stronger stock valuations, pent-up demand, and corporates’ pursuit of greater scale and competitiveness. This outlook is further supported by regulatory shifts under the Trump administration, with the Federal Reserve moving to loosen “well-managed” requirements and streamline approval processes, creating more conducive conditions for consolidation.
Amid this backdrop, a key question emerges: which IB stock — Goldman or Evercore — presents the more compelling upside potential?
The Case for GS
In global banking and markets, Goldman maintains its long-standing leadership position in announced and completed M&A. GS’s IB revenues increased 8% year over year in the first six months of 2025. A strong deal pipeline and Goldman’s leadership position signal further upside as macro conditions improve. 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.
Goldman's streamlining effort has been underway for some time, driven largely by the firm's retreat from its underperforming consumer banking ventures. The company is exiting its non-core consumer banking business and sharpening its focus on Global Banking and Markets, and Asset and Wealth Management (“AWM”). GS is placing more emphasis on its AWM division, viewing it as a more stable revenue source. The company is reportedly exploring acquisitions to expand its AWM footprint.
During the second-quarter earnings call, management highlighted the critical role of scale in growing this business. CEO David Solomon noted, “There’s got to be a strategic fit in terms of things that we’re prioritizing in the growth of our asset and wealth management franchise.”
The Case of EVR
Evercore, 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 94% of total revenues as of June 30, 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 half of 2025.
The company is strengthening its IB business footprint by actively increasing staff. As of June 30, 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 likely support IB revenue growth.
GS & EVR: Price Performance, Valuation & Other Comparisons
So far this year, shares of Goldman and Evercore have risen 31.7% and 17.1%, respectively, against the industry’s growth of 26.8%.
Price Performance
In terms of valuation, Goldman is currently trading at a 12-month forward price-to-earnings (P/E) of 14.99X, higher than its five-year median of 10.24X. The EVR stock, alternatively, is currently trading at a 12-month forward P/E of 19.64X, which is higher than its five-year median of 12.49X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Evercore is trading at a premium compared with the industry average of 14.79X. Goldman is trading at a discount compared with the industry. Hence, GS is a better choice for value investors.
Both companies regularly pay out dividends. EVR has a dividend yield of 1.03% while GS has a dividend yield of 1.60%. Both are higher than the industry’s average dividend yield of 1%. Here also, Goldman holds an edge over Evercore.
Dividend Yield
Image Source: Zacks Investment Research
How Do Estimates Compare for GS & EVR?
The Zacks Consensus Estimate for GS’s 2025 and 2026 revenues implies year-over-year rallies of 6.3% and 6.5%, respectively. Likewise, the consensus estimate for 2025 and 2026 earnings indicates 12.6% and 14.9% respectively. Earnings estimates for both years have been revised upward over the past 60 days.
Earnings Estimates
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EVR’s 2025 and 2026 sales suggests year-over-year increases of 15.9% and 27.1%, respectively. Also, the consensus estimate for 2025 and 2026 earnings indicates a 31.7% and 50.8% jump, respectively. Earnings estimates for both years have been revised upward over the past 60 days.
Earnings Estimates
Image Source: Zacks Investment Research
GS or EVR: Which Stock to Bet on?
Goldman remains strategically well-positioned when weighing against Evercore. EVR has built an enviable franchise in M&A advisory, posting strong earnings momentum and expanding aggressively. Its earnings outlook for 2025 and 2026 is impressive, with double-digit top-line growth and an ambitious hiring strategy that should extend its market presence. However, investors must contend with its high valuation premium, narrower revenue base, and greater sensitivity to swings in the dealmaking cycle.
Goldman, conversely, offers a more balanced and resilient investment case. The bank’s leadership in a global M&A and diversified model and sharpened strategic focus give it greater staying power. The pivot away from underperforming consumer ventures and the renewed emphasis on AWM provide stability through recurring revenues, helping cushion volatility in the investment banking cycle. This focus on scale and long-term growth is backed by a solid deal pipeline and a rising backlog that should translate into revenue strength as macro conditions improve.
From a valuation perspective and dividend yield, the picture tilts decisively in Goldman’s favor. For those seeking a durable, long-term investment in the IB sector, GS stands out as the smarter bet.
At present, Evercore and Goldman carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.