BlackRock showcased remarkable performance in the second quarter, marking its strongest showing and highest growth rates since the pandemic. The company bolstered its margin by 160 basis points, hauling in $80 billion in new assets. Notably, a 3% annualized organic base fee growth was achieved, the highest in three Q2s. As Q2 came to a close, BlackRock boasted a record Assets Under Management (AUM) surpassing $10.6 trillion.
Goldman Sachs’ Stellar Quarter
Goldman Sachs emerged victorious in Q2, surpassing both top and bottom-line expectations by 1%. With Q2 EPS hitting $8.62 and sales totaling $12.73 billion, the bank saw a staggering 180% year-over-year leap in earnings. Quarterly sales were up by 17%, showcasing superior profitability with total operating expenses reduced to $8.53 billion. Goldman’s AUM escalated by $86 billion, securing a record level of $2.93 trillion.
Comparing Performance & Valuation
Goldman’s stock has surged an impressive 50% year to date, outshining the S&P 500’s 25%, while BlackRock’s 13% growth has trailed the broader market. Despite this, BlackRock’s stock is trading at 20X forward earnings, whereas Goldman stands at 13.2X, providing attractive discounts in comparison to the S&P 500’s 23.6X.
Final Thoughts
Both BlackRock and Goldman Sachs currently hold a Zacks Rank #3 (Hold). The potential for further growth in these investment juggernauts may hinge on post-Q2 earnings estimate revisions. Nonetheless, they remain promising long-term investments, especially with record-breaking assets under management.