Analyzing FXCM (OTCMKTS:GLBR) & The Goldman Sachs Group (NYSE:GS)

The Goldman Sachs Group (NYSE:GS) and FXCM (OTCMKTS:GLBR) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Insider & Institutional Ownership

71.2% of The Goldman Sachs Group shares are held by institutional investors. 0.6% of The Goldman Sachs Group shares are held by company insiders. Comparatively, 9.0% of FXCM shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares The Goldman Sachs Group and FXCM”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Goldman Sachs Group	$125.10 billion	2.24	$17.18 billion	$51.29	18.23
FXCM	N/A	N/A	N/A	N/A	N/A

The Goldman Sachs Group has higher revenue and earnings than FXCM.

Profitability

This table compares The Goldman Sachs Group and FXCM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Goldman Sachs Group	13.73%	15.19%	0.96%
FXCM	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for The Goldman Sachs Group and FXCM, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Goldman Sachs Group	1	15	8	1	2.36
FXCM	0	0	0	0	0.00

The Goldman Sachs Group presently has a consensus price target of $898.62, indicating a potential downside of 3.91%. Given FXCM’s higher possible upside, analysts plainly believe FXCM is more favorable than The Goldman Sachs Group.

Risk and Volatility

The Goldman Sachs Group has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, FXCM has a beta of -2.38, suggesting that its stock price is 338% less volatile than the S&P 500.

Summary

The Goldman Sachs Group beats FXCM on 9 of the 11 factors compared between the two stocks.

About The Goldman Sachs Group

The Goldman Sachs Group, Inc., a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals worldwide. It operates through Global Banking & Markets, Asset & Wealth Management, and Platform Solutions segments. The Global Banking & Markets segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs; and relationship lending, and acquisition financing, as well as secured lending, through structured credit and asset-backed lending and involved in financing under securities to resale agreements. This segment also offers client execution activities for cash and derivative instruments; credit and interest rate products; and provision of mortgages, currencies, commodities, and equities related products, as well as underwriting services. The Asset & Wealth Management segment manages assets across various classes, including equity, fixed income, hedge funds, credit funds, private equity, real estate, currencies, and commodities; and provides customized investment advisory solutions, wealth advisory services, personalized financial planning, and private banking services, as well as invests in corporate equity, credit, real estate, and infrastructure assets. The Platform Solutions segment offers credit cards and point-of-sale financing for purchase of goods or services. This segment also provides cash management services, such as deposit-taking and payment solutions for corporate and institutional clients. The Goldman Sachs Group, Inc. was founded in 1869 and is headquartered in New York, New York.

About FXCM

Global Brokerage, Inc., through its subsidiaries, provides online foreign exchange (FX) trading, contracts for difference trading, spread betting, and related services to retail and institutional customers worldwide. Its proprietary trading platform presents its FX customers with the price quotations on various currency pairs from a range of global banks, financial institutions, and market makers. The company also acts as a credit intermediary and simultaneously entering into trades with the customer and the FX market maker. It offers its customers access to over-the-counter FX markets. The company was formerly known as FXCM Inc. and changed its name to Global Brokerage, Inc. in February 2017. Global Brokerage, Inc. was incorporated in 2010 and is based in New York, New York. On March 23, 2023, an involuntary petition for liquidation under Chapter 7 was filed against Global Brokerage, Inc. in the U.S. Bankruptcy Court for the Southern District of New York. On May 19, 2023, the involuntary petition was approved by the Court.