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Goldman vs. Evercore: Which Investment Banking Stock to Bet On?
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Key Takeaways
Goldman posted 24% IB revenue growth in 2024, and continues to benefit from strong M&A and IPO pipelines.
Evercore's IB and Equities business saw an 8.6% CAGR from 2017 to 2024, with momentum carrying into 2025.
EVR shares surged 72% in six months, outpacing GS's 46.7% rise and the industry's 31.8% growth.
With the investment banking (IB) industry witnessing a rebound, two names are drawing increasing investor attention — Evercore Inc. (EVR - Free Report) and The Goldman Sachs Group Inc. (GS - Free Report) , which offer services, such as mergers and acquisitions (M&A) advisory, capital markets, and wealth management. While Goldman is a financial giant with a broad range of services, Evercore specializes in independent advisory services.
The 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 a potential economic slowdown and inflationary pressures. Nonetheless, since then the situation has reversed to some extent and deal-making activities look promising, driven by greater clarity on taxes, tariffs, deregulation, pent-up demand and corporates’ pursuit of greater scale and competitiveness.
Amid this backdrop, a key question emerges: which IB stock among Goldman and 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. Its IB revenues jumped 24% year-over-year to $7.73 billion in 2024. The uptrend continued in the first half of 2025.
At the Barclays 23rd Annual Global Financial Services Conference in early September, Goldman’s CEO David Solomon stated that the company logged strong activity across IPOs and M&As as of late, thanks in part to a friendlier regulatory environment under the pro-growth Trump administration. With rising M&As and IPO pipelines, the company’s decent IB backlog and leadership position will continue to support its performance.
Additionally, Goldman’s streamlining effort has been underway for some time as it retreats from the underperforming, non-core consumer banking ventures and sharpens its focus on core businesses, including asset management, which is being viewed as a more stable revenue source.
GS is reportedly exploring acquisitions to expand its AWM footprint. Additionally, at the above-mentioned conference, the company stated that the division’s business is expected to grow in the high-single-digit range, contributing to a higher overall return for the firm.
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 Investment Banking and Equities business 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 March 31, 2025, the company employed 197 and 184 total Investment Banking & Equities senior managing directors, respectively.
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 jumped 46.7% and 72%, respectively, compared with the industry’s growth of 31.8%. So, in terms of investors' confidence in the stock, EVR has the edge.
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 15.6X. The EVR stock is currently trading at a 12-month forward P/E of 17.2X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Both stocks are trading at a premium compared with the industry average of 15.2X. Hence, Goldman is inexpensive compared with EVR.
Both companies regularly pay out dividends. EVR has a dividend yield of 0.98%, whereas GS has a dividend yield of 1.99%. Both are higher than the industry’s average dividend yield of 0.98%. Here, Goldman has an edge over Evercore. Therefore, in terms of dividend payout, GS has 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 suggests year-over-year rallies of 6.8% and 6.3%, respectively. Likewise, the consensus estimate for 2025 and 2026 earnings indicates 15.1% and 14% increases, respectively. Earnings estimates for both years have been revised upward over the past month.
Estimates Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EVR’s 2025 and 2026 revenues implies year-over-year growth of 17.4% and 25.4%, respectively. Also, the consensus estimate for 2025 and 2026 earnings suggests 34.5% and 76.9% rallies, respectively. Earnings estimates for both years have been revised upward over the past month.
Estimates Revision Trend
Image Source: Zacks Investment Research
GS or EVR: Which IB Stock Should You Bet on?
While Goldman offers the safety of a diversified business model, a stronger dividend yield and a slightly cheaper valuation, Evercore stands out as the more compelling upside play in the current IB rebound.
EVR’s pure-play advisory focus, aggressive hiring of senior dealmakers and impressive growth trajectory position it to outperform if M&A activity continues to strengthen. Its concentrated exposure to deal-making gives it greater earnings leverage in a robust market environment, making it the more exciting pick for investors seeking high-growth potential despite a premium valuation.
Further, Evercore’s growth projections far exceed Goldman’s moderate mid-single-digit revenue and mid-teens earnings growth. Although EVR trades at a slight premium and offers a lower dividend yield, its superior growth trajectory and stronger earnings leverage make that premium justifiable.
Backed by a Zacks Rank #1 (Strong Buy) versus Goldman’s #3 (Hold), Evercore stands out as the smarter bet for investors seeking high-growth potential in a robust M&A environment. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Goldman vs. Evercore: Which Investment Banking Stock to Bet On?
Key Takeaways
With the investment banking (IB) industry witnessing a rebound, two names are drawing increasing investor attention — Evercore Inc. (EVR - Free Report) and The Goldman Sachs Group Inc. (GS - Free Report) , which offer services, such as mergers and acquisitions (M&A) advisory, capital markets, and wealth management. While Goldman is a financial giant with a broad range of services, Evercore specializes in independent advisory services.
The 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 a potential economic slowdown and inflationary pressures. Nonetheless, since then the situation has reversed to some extent and deal-making activities look promising, driven by greater clarity on taxes, tariffs, deregulation, pent-up demand and corporates’ pursuit of greater scale and competitiveness.
Amid this backdrop, a key question emerges: which IB stock among Goldman and 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. Its IB revenues jumped 24% year-over-year to $7.73 billion in 2024. The uptrend continued in the first half of 2025.
At the Barclays 23rd Annual Global Financial Services Conference in early September, Goldman’s CEO David Solomon stated that the company logged strong activity across IPOs and M&As as of late, thanks in part to a friendlier regulatory environment under the pro-growth Trump administration. With rising M&As and IPO pipelines, the company’s decent IB backlog and leadership position will continue to support its performance.
Additionally, Goldman’s streamlining effort has been underway for some time as it retreats from the underperforming, non-core consumer banking ventures and sharpens its focus on core businesses, including asset management, which is being viewed as a more stable revenue source.
GS is reportedly exploring acquisitions to expand its AWM footprint. Additionally, at the above-mentioned conference, the company stated that the division’s business is expected to grow in the high-single-digit range, contributing to a higher overall return for the firm.
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 Investment Banking and Equities business 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 March 31, 2025, the company employed 197 and 184 total Investment Banking & Equities senior managing directors, respectively.
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 jumped 46.7% and 72%, respectively, compared with the industry’s growth of 31.8%. So, in terms of investors' confidence in the stock, EVR has the edge.
Price Performance
In terms of valuation, Goldman is currently trading at a 12-month forward price-to-earnings (P/E) of 15.6X. The EVR stock is currently trading at a 12-month forward P/E of 17.2X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Both stocks are trading at a premium compared with the industry average of 15.2X. Hence, Goldman is inexpensive compared with EVR.
Both companies regularly pay out dividends. EVR has a dividend yield of 0.98%, whereas GS has a dividend yield of 1.99%. Both are higher than the industry’s average dividend yield of 0.98%. Here, Goldman has an edge over Evercore. Therefore, in terms of dividend payout, GS has 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 suggests year-over-year rallies of 6.8% and 6.3%, respectively. Likewise, the consensus estimate for 2025 and 2026 earnings indicates 15.1% and 14% increases, respectively. Earnings estimates for both years have been revised upward over the past month.
Estimates Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EVR’s 2025 and 2026 revenues implies year-over-year growth of 17.4% and 25.4%, respectively. Also, the consensus estimate for 2025 and 2026 earnings suggests 34.5% and 76.9% rallies, respectively. Earnings estimates for both years have been revised upward over the past month.
Estimates Revision Trend
Image Source: Zacks Investment Research
GS or EVR: Which IB Stock Should You Bet on?
While Goldman offers the safety of a diversified business model, a stronger dividend yield and a slightly cheaper valuation, Evercore stands out as the more compelling upside play in the current IB rebound.
EVR’s pure-play advisory focus, aggressive hiring of senior dealmakers and impressive growth trajectory position it to outperform if M&A activity continues to strengthen. Its concentrated exposure to deal-making gives it greater earnings leverage in a robust market environment, making it the more exciting pick for investors seeking high-growth potential despite a premium valuation.
Further, Evercore’s growth projections far exceed Goldman’s moderate mid-single-digit revenue and mid-teens earnings growth. Although EVR trades at a slight premium and offers a lower dividend yield, its superior growth trajectory and stronger earnings leverage make that premium justifiable.
Backed by a Zacks Rank #1 (Strong Buy) versus Goldman’s #3 (Hold), Evercore stands out as the smarter bet for investors seeking high-growth potential in a robust M&A environment. You can see the complete list of today’s Zacks #1 Rank stocks here.