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Goldman vs. Citigroup: Which Financial Giant Should You Pick Now?
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Key Takeaways
Citigroup is nearing the final phase of its restructuring and global consumer banking exits.
C targets 4-5% revenue CAGR through 2026, while expanding wealth and private markets.
Goldman is focusing on IB, trading and wealth management after consumer banking exits.
The Goldman Sachs Group, Inc. (GS - Free Report) and Citigroup, Inc. (C - Free Report) have long been pillars of the Wall Street heavyweights.
Goldman is sharpening its focus on high-margin businesses, such as investment banking, trading and wealth management, while Citigroup is executing a sweeping restructuring aimed at simplifying its global footprint and improving profitability.
With interest rates, capital markets activity and economic conditions continuing to shape the banking landscape, investors are asking a key question: which stock offers the stronger opportunity for now?Let us take a closer look and evaluate the potential of each bank.
The Case for GS
Goldman has been a dominant player in mergers and acquisitions, trading and capital markets. Under CEO David Solomon, the company has embarked on a deliberate transformation to exit non-core consumer banking and double down on the divisions wherein Goldman maintains a clear competitive advantage: investment banking (IB), trading, and asset and wealth management. That strategic pivot is already delivering results.
In the first quarter of 2026, Goldman’s Global Banking & Markets division posted a 19% year-over-year increase in net revenues, following an 18% rise in 2025. Meanwhile, Asset & Wealth Management revenues climbed 10% after modest growth the previous year.
Goldman has also been actively reshaping its portfolio through acquisitions and divestitures. The company recently acquired Innovator Capital Management to expand its active ETF platform and deepen recurring fee-based revenue streams. In January 2026, Goldman agreed to transfer the Apple Card business to JPMorgan Chase, continuing its retreat from consumer lending. The bank also moved to sell its Polish asset management unit to ING Bank Slaski, with the transaction expected to close in the first half of 2026.
Artificial intelligence (AI) is becoming another major growth engine for Goldman. The firm is implementing AI across trading, investment banking, asset management and internal operations to boost productivity, improve client service and expand operating leverage. Over time, this initiative could further shift Goldman toward higher-fee, data-driven businesses, while reducing its reliance on capital-intensive activities.
GS is also aggressively expanding in private markets. Its Asset Management unit aims to grow private credit assets to $300 billion by 2029, while broadening its footprint across Europe, the U.K. and Asia. This month, Goldman Sachs Alternatives, part of Goldman’s Asset Management division, acquired FGI Worldwide LLC to expand private credit and specialty finance capabilities. Earlier this year, Goldman acquired Industry Ventures to strengthen its exposure to venture capital and alternative investments.
The Case for C
Citigroup, by contrast, is far more sweeping. Under CEO Jane Fraser, the company is advancing its multi-year strategy to streamline operations and focus on its core businesses. Since announcing plans in April 2021 to exit consumer banking in 14 markets across Asia and EMEA, the company has completed exits in nine countries. During the first-quarter 2026 earnings call, management stated that the company entered the final phase of its divestitures, and 90% of the transformation programs are now at or near the target.
In February 2026, Citigroup completed the sale of its Russia-based banking subsidiary, AO Citibank, to Renaissance Capital. The sale of AO Citibank strengthens the company’s capital position and streamlines its balance sheet. In the same month, C announced agreements with several investors for commitments to purchase an aggregate 24% equity stake in Grupo Financiero Banamex, S.A. de C.V (Banamex), following the divestiture of 25% stake in Banamex to a Mexican business leader in December 2025.
These efforts are designed to free resources for faster-growing businesses, such as wealth management and investment banking. C expects revenues to see a 4%-5% compound annual growth rate through 2026 and is targeting a 10-11% return on tangible common equity.
Cost-cutting remains another major pillar of Citigroup’s growth strategy. The bank plans to eliminate 20,000 jobs by 2026 and has already reduced its headcount by more than 10,000 employees. At the same time, the company is deploying automation and AI tools to improve efficiency and reduce manual processes. Importantly, C is not merely cutting costs; it is also investing heavily in growth. The bank plans to spend an additional $5 billion between 2026 and 2028 on technology upgrades, marketing, branch modernization and front-office talent.
Citigroup is also expanding deeper into private markets and alternative investments through partnerships with major asset managers. In recent years, the bank has launched private credit and customized portfolio initiatives with BlackRock, Carlyle Group and Apollo Global Management to diversify revenue streams and strengthen client engagement.
This month, Citigroup, along with HPS Investment Partners (“HPS”), which is part of BlackRock, announced a €15-billion ($17.5 billion) private credit program to expand direct lending across Europe, the Middle East and Africa.
GS & C: Price Performance, Valuation & Other Comparisons
Over the past year, shares of Goldman and Citigroup have risen 64.8% and 66%, respectively, compared with the industry’s growth of 23.1%.
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 16.05X. Meanwhile, Citigroup’s stock is trading at a 12-month forward P/E of 11.04X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
C is trading at a discount compared with the industry average of 12.85X. However, the GS stock is trading at a premium.
C and GS reward their shareholders handsomely. In January 2026, GS raised its dividend 12.5% to $4.50 per share. It has raised its dividend six times over the past five years. Citigroup raised its dividend 7.1% to 60 cents in July 2025. It has raised its dividend three times over the past five years. C has a dividend yield of 1.91%, while Goldman has a dividend yield of 1.81%.
Dividend Yield
Image Source: Zacks Investment Research
How Do Estimates Compare for GS & C?
The Zacks Consensus Estimate for GS’s 2026 and 2027 earnings indicates increases of 16% and 10.5%, respectively. Over the past month, earnings estimates for both years have been unchanged.
Estimate Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for C’s 2026 and 2027 earnings indicates 34% and 16.4% growth, respectively. Over the past month, earnings estimates for both years have been revised upward.
Estimate Revision Trend
Image Source: Zacks Investment Research
GS or C: Which Stock to Invest in Now?
Goldman continues to benefit from strong momentum in IB, trading and wealth management. However, much of its strength appears priced into the stock, which trades at a premium valuation.
Citigroup, conversely, offers a more compelling risk-reward profile. The bank is nearing the end of its restructuring efforts, improving efficiency, cutting costs and investing in higher-growth businesses like wealth management and private markets. At the same time, C trades at a discount to both Goldman and the broader banking industry while offering stronger projected earnings growth.
Given its improving fundamentals, attractive valuation and higher upside potential, Citigroup stock appears to be the better pick for investors to consider right now.
View the Zacks #1 Rank List
Image: Bigstock
Goldman vs. Citigroup: Which Financial Giant Should You Pick Now?
Key Takeaways
The Goldman Sachs Group, Inc. (GS - Free Report) and Citigroup, Inc. (C - Free Report) have long been pillars of the Wall Street heavyweights.
Goldman is sharpening its focus on high-margin businesses, such as investment banking, trading and wealth management, while Citigroup is executing a sweeping restructuring aimed at simplifying its global footprint and improving profitability.
With interest rates, capital markets activity and economic conditions continuing to shape the banking landscape, investors are asking a key question: which stock offers the stronger opportunity for now?Let us take a closer look and evaluate the potential of each bank.
The Case for GS
Goldman has been a dominant player in mergers and acquisitions, trading and capital markets. Under CEO David Solomon, the company has embarked on a deliberate transformation to exit non-core consumer banking and double down on the divisions wherein Goldman maintains a clear competitive advantage: investment banking (IB), trading, and asset and wealth management. That strategic pivot is already delivering results.
In the first quarter of 2026, Goldman’s Global Banking & Markets division posted a 19% year-over-year increase in net revenues, following an 18% rise in 2025. Meanwhile, Asset & Wealth Management revenues climbed 10% after modest growth the previous year.
Goldman has also been actively reshaping its portfolio through acquisitions and divestitures. The company recently acquired Innovator Capital Management to expand its active ETF platform and deepen recurring fee-based revenue streams. In January 2026, Goldman agreed to transfer the Apple Card business to JPMorgan Chase, continuing its retreat from consumer lending. The bank also moved to sell its Polish asset management unit to ING Bank Slaski, with the transaction expected to close in the first half of 2026.
Artificial intelligence (AI) is becoming another major growth engine for Goldman. The firm is implementing AI across trading, investment banking, asset management and internal operations to boost productivity, improve client service and expand operating leverage. Over time, this initiative could further shift Goldman toward higher-fee, data-driven businesses, while reducing its reliance on capital-intensive activities.
GS is also aggressively expanding in private markets. Its Asset Management unit aims to grow private credit assets to $300 billion by 2029, while broadening its footprint across Europe, the U.K. and Asia. This month, Goldman Sachs Alternatives, part of Goldman’s Asset Management division, acquired FGI Worldwide LLC to expand private credit and specialty finance capabilities. Earlier this year, Goldman acquired Industry Ventures to strengthen its exposure to venture capital and alternative investments.
The Case for C
Citigroup, by contrast, is far more sweeping. Under CEO Jane Fraser, the company is advancing its multi-year strategy to streamline operations and focus on its core businesses. Since announcing plans in April 2021 to exit consumer banking in 14 markets across Asia and EMEA, the company has completed exits in nine countries. During the first-quarter 2026 earnings call, management stated that the company entered the final phase of its divestitures, and 90% of the transformation programs are now at or near the target.
In February 2026, Citigroup completed the sale of its Russia-based banking subsidiary, AO Citibank, to Renaissance Capital. The sale of AO Citibank strengthens the company’s capital position and streamlines its balance sheet. In the same month, C announced agreements with several investors for commitments to purchase an aggregate 24% equity stake in Grupo Financiero Banamex, S.A. de C.V (Banamex), following the divestiture of 25% stake in Banamex to a Mexican business leader in December 2025.
These efforts are designed to free resources for faster-growing businesses, such as wealth management and investment banking. C expects revenues to see a 4%-5% compound annual growth rate through 2026 and is targeting a 10-11% return on tangible common equity.
Cost-cutting remains another major pillar of Citigroup’s growth strategy. The bank plans to eliminate 20,000 jobs by 2026 and has already reduced its headcount by more than 10,000 employees. At the same time, the company is deploying automation and AI tools to improve efficiency and reduce manual processes. Importantly, C is not merely cutting costs; it is also investing heavily in growth. The bank plans to spend an additional $5 billion between 2026 and 2028 on technology upgrades, marketing, branch modernization and front-office talent.
Citigroup is also expanding deeper into private markets and alternative investments through partnerships with major asset managers. In recent years, the bank has launched private credit and customized portfolio initiatives with BlackRock, Carlyle Group and Apollo Global Management to diversify revenue streams and strengthen client engagement.
This month, Citigroup, along with HPS Investment Partners (“HPS”), which is part of BlackRock, announced a €15-billion ($17.5 billion) private credit program to expand direct lending across Europe, the Middle East and Africa.
GS & C: Price Performance, Valuation & Other Comparisons
Over the past year, shares of Goldman and Citigroup have risen 64.8% and 66%, respectively, compared with the industry’s growth of 23.1%.
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 16.05X. Meanwhile, Citigroup’s stock is trading at a 12-month forward P/E of 11.04X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
C is trading at a discount compared with the industry average of 12.85X. However, the GS stock is trading at a premium.
C and GS reward their shareholders handsomely. In January 2026, GS raised its dividend 12.5% to $4.50 per share. It has raised its dividend six times over the past five years. Citigroup raised its dividend 7.1% to 60 cents in July 2025. It has raised its dividend three times over the past five years. C has a dividend yield of 1.91%, while Goldman has a dividend yield of 1.81%.
Dividend Yield
Image Source: Zacks Investment Research
How Do Estimates Compare for GS & C?
The Zacks Consensus Estimate for GS’s 2026 and 2027 earnings indicates increases of 16% and 10.5%, respectively. Over the past month, earnings estimates for both years have been unchanged.
Estimate Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for C’s 2026 and 2027 earnings indicates 34% and 16.4% growth, respectively. Over the past month, earnings estimates for both years have been revised upward.
Estimate Revision Trend
Image Source: Zacks Investment Research
GS or C: Which Stock to Invest in Now?
Goldman continues to benefit from strong momentum in IB, trading and wealth management. However, much of its strength appears priced into the stock, which trades at a premium valuation.
Citigroup, conversely, offers a more compelling risk-reward profile. The bank is nearing the end of its restructuring efforts, improving efficiency, cutting costs and investing in higher-growth businesses like wealth management and private markets. At the same time, C trades at a discount to both Goldman and the broader banking industry while offering stronger projected earnings growth.
Given its improving fundamentals, attractive valuation and higher upside potential, Citigroup stock appears to be the better pick for investors to consider right now.
At present, C carries a Zacks Rank of 2 (Buy), whereas GS has a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.