BAC vs GS: How Bank of America and Goldman Sachs Compare (2026)

Same yardstick, side by side (as of July 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. BAC and GS share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined BAC and GS exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Bank of America is the second-largest US bank by assets, behind JPMorgan Chase. The company is one of the four mega-bank holding companies (along with JPMorgan, Citigroup, and Wells Fargo) and operates across four main reporting segments. Consumer Banking is the largest retail bank in the US by deposits, serving over 60 million customers through ~3,800 branches. Global Wealth and Investment Management is one of the largest US wealth managers (anchored by Merrill Lynch). Global Banking provides commercial banking, treasury services, and investment banking to corporate and institutional clients. Global Markets provides trading services across fixed income, equities, and commodities.

Full BAC guide

Goldman Sachs, founded in 1869 and headquartered in New York, is one of the world's preeminent investment banks and financial services firms. The firm operates through two primary segments: Global Banking and Markets, which encompasses investment banking advisory, equity and debt underwriting, and market-making across equities, fixed income, currencies and commodities; and Asset and Wealth Management, which provides investment management, financial planning, and wealth advisory services to institutions, family offices, and high-net-worth individuals. Revenue is generated through advisory fees, underwriting commissions, trading gains, asset management fees, and net interest income, making the firm's earnings profile heavily tied to the health of global capital markets. Goldman exited its consumer banking and credit card business in 2025, sharpening its focus on institutional and ultra-high-net-worth clients. David Solomon has served as Chairman and Chief Executive Officer since 2018, steering the firm through a consumer retreat and back toward its core investment banking and markets identity. Under his tenure, Goldman has grown revenues by roughly 60% and improved returns by approximately 500 basis points since its first formal Investor Day, while also expanding its alternatives and third-party asset management capabilities. The firm employs tens of thousands of professionals across offices in every major global financial center.

Full GS guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• BAC drivers: Net interest income from deposit franchise; Investment banking and trading recovery.
• GS drivers: M&A Supercycle Recovery; Record Equities and Trading Revenue.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Credit quality is the eternal bank risk; consumer and commercial credit losses cyclically. For GS, goldman's revenues are among the most cyclical in global finance: a sustained market downturn, a sharp contraction in M&A volumes, or a widening of credit spreads could compress earnings meaningfully in a short period.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick BAC if you believe its drivers more; GS if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the BAC and GS guides.

BAC. BAC trades at a modest P/E typical of large US banks. The valuation balances the durable consumer deposit franchise and capital markets recovery against credit cycle uncertainty and regulatory capital requirements. Price-to-book around 1.1x is consistent with ROE around 10%.

GS. Goldman's 2025 revenues of ~$58.28 billion were the firm's highest on record, and diluted EPS of ~$51.32 represented a 27% increase over 2024's already-strong ~$40.54. The current trailing P/E of approximately 19.4x is roughly 47% above the firm's own 10-year median of about 13.25x, reflecting market optimism about a sustained M&A and capital markets recovery as well as asset management fee growth, though it also means the stock is priced for continued execution. The low-to-mid single-digit dividend yield (~1.69%) is supplemented by a newly authorized $20 billion buyback, with a payout ratio of approximately 30%, leaving significant earnings retained for capital deployment and growth.

Headline figures (approximate, early 2026): BAC shows revenue (ttm) ~$100 billion, net income (ttm) ~$28 billion, eps (ttm) ~$3.50, p/e (ttm) ~13x; GS shows revenue (full year 2025) ~$58.28 billion, net earnings (full year 2025) ~$17.18 billion, diluted eps (full year 2025) ~$51.32, return on equity (full year 2025) ~15.0%.

BAC and GS are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined BAC and GS exposure against your real portfolio. It is not an investment adviser.