JPMorgan Chase and Goldman Sachs are two key financial industry players and play an important role in both the U.S. and global economy. Although both companies are household names, JPMorgan Chase is substantially larger than Goldman Sachs in terms of market capitalization and revenue. Another important difference between the two is that JPMorgan Chase has a bigger focus on retail banking compared to Goldman Sachs.
Before we compare JP Morgan vs. Goldman Sachs, let’s quickly introduce both companies and the business areas they operate in.
JPMorgan Chase
JPMorgan Chase is the world’s largest bank by market capitalization, and the world’s 5th largest bank in terms of total assets. The company’s activities can be divided into six main segments: asset and wealth management, commercial banking, consumer and community banking, corporate and investment banking, corporate functions and technology.
JPMorgan Chase operates through two main subsidiaries: J.P. Morgan and Chase. J.P. Morgan provides financial services to governments, corporations, institutional investors, and high net worth individuals. Meanwhile, the Chase subsidiary offers consumer and commercial banking services.
The J.P. Morgan subsidiary operates in various segments, including asset management, commercial banking, investment banking, payments, private banking and wealth management. Meanwhile, the Chase division offers consumer banking services such as checking and savings accounts, CDs, credit cards, home and auto loans, as well as investment products.
Goldman Sachs
Goldman Sachs is one of the most successful banks in the world and commands a market capitalization of $146 billion as of early June 2024. Let’s go through a quick overview of the main business segments that Goldman Sachs participates in.
Asset and wealth management
In this segment, Goldman Sachs offers asset management, financial planning, consumer banking products and private wealth management services. Goldman Sachs offers traditional asset management, as well as asset management focused on alternative investments and sustainability.
Global banking and markets
The global banking and markets segment at Goldman Sachs covers FICC and equities, investment banking for corporations, institutions and governments, as well as market intelligence and analytics services.
Platform solutions
In the platform solutions segment, Goldman Sachs offers technologies that allow companies to offer financial services to their customers, transaction banking services, as well as an ETF accelerator designed to simplify the process of launching ETFs for institutional clients.
Global investment research
The global investment research division at Goldman Sachs is focused on providing fundamental analysis for clients in various markets, including equities, currency, commodities and fixed income.
Goldman Sachs also offers a consumer banking platform called Marcus, which is available in the United States and the United Kingdom. The Marcus platform features an online high-yield savings account and CDs (certificates of deposit).
JPMorgan vs. Goldman Sachs – What are the key differences?
According to JPMorgan’s Q1 2024 results, the company brought in $17.6 billion in revenues from its consumer and community banking segment. $10.3 billion of that revenue came from banking and wealth management services, $6.1 billion came from card and auto services, and $1.1 million came from the bank’s home lending business. The company’s asset and wealth management segment generated $4.7 billion in revenue, while its corporate segment brought in $2.3 billion.
Meanwhile, JPMorgan’s corporate and investment bank segment brought in $13.6 billion in revenue, with markets and securities services accounting for $9.1 billion and banking services accounting for $4.4 billion.
If we take a look at the Q1 2024 results of Goldman Sachs, we can see that the company made the majority of its revenue with its global banking and markets division ($9.7 billion). Meanwhile, the bank’s asset and wealth management segment generated $3.7 billion in net revenue, and the platform solutions segment brought in $698 million.
JPMorgan Chase Goldman Sachs Ticker JPM GS CEO Jamie Dimon David Solomon Market cap $568 billion $148 billion PE ratio (TTM) 11.94 17.97 EPS (TTM) 16.57 25.68
Data as of June 5, 2024
The bottom line
Although both banks are major players in the financial industry, JPMorgan Chase is a significantly bigger company than Goldman Sachs. In terms of market capitalization, JPMorgan Chase is more than three times larger than Goldman Sachs. When it comes to revenue in Q1 2024, JPMorgan Chase brought in $42.5 billion, while Goldman Sachs generated $13.9 billion.
When comparing the two companies based on the services they offer, there’s a lot of overlap, although JPMorgan Chase puts significantly more focus on retail banking than Goldman Sachs.
If you are looking to learn more about the banking sector, make sure to take a look at our list of the best banks in the world.
