Goldman vs. Evercore: Which Investment Banking Stock Is a Smarter Bet?

By Riya Anand | August 29, 2025, 1:02 PM

Both The Goldman Sachs Group Inc. GS and Evercore Inc. EVR are leading U.S. investment banks, competing in mergers and acquisitions (M&A) advisory and dealmaking. Goldman represents the scale and diversification of a bulge-bracket bank, while Evercore offers the high-margin, focused model of a boutique advisory firm.

Although 2025 began with optimism, market sentiment briefly dipped following Trump’s tariff plans announced on 'Liberation Day'. M&A have since regained momentum and are expected to remain robust in the second half of 2025, driven by stronger stock valuations, pent-up demand, and corporates’ pursuit of greater scale and competitiveness. This outlook is further supported by regulatory shifts under the Trump administration, with the Federal Reserve moving to loosen “well-managed” requirements and streamline approval processes, creating more conducive conditions for consolidation.

Amid this backdrop, a key question emerges: which IB stock — Goldman or Evercore — presents the more compelling upside potential?

The Case for GS

In global banking and markets, Goldman maintains its long-standing leadership position in announced and completed M&A. GS’s IB revenues increased 8% year over year in the first six months of 2025. A strong deal pipeline and Goldman’s leadership position signal further upside as macro conditions improve. This, along with an increased backlog, will likely convert into higher IB revenues once the operating backdrop improves, giving Goldman a strategic edge over peers.

Goldman's streamlining effort has been underway for some time, driven largely by the firm's retreat from its underperforming consumer banking ventures. The company is exiting its non-core consumer banking business and sharpening its focus on Global Banking and Markets, and Asset and Wealth Management (“AWM”). GS is placing more emphasis on its AWM division, viewing it as a more stable revenue source. The company is reportedly exploring acquisitions to expand its AWM footprint.

During the second-quarter earnings call, management highlighted the critical role of scale in growing this business. CEO David Solomon noted, “There’s got to be a strategic fit in terms of things that we’re prioritizing in the growth of our asset and wealth management franchise.”

The Case of EVR

Evercore, though small in size, has established itself as a significant player in the IB space. The company generates most of its revenues from the Investment Banking and Equities business (which constituted 94% of total revenues as of June 30, 2025). The metric witnessed a compound annual growth rate (CAGR) of 8.6% from 2017 to 2024, with a rising trend continuing in the first half of 2025.

The company is strengthening its IB business footprint by actively increasing staff. As of June 30, 2025, the company employed 197 total Investment Banking & Equities senior managing directors. Going forward, the company’s efforts to boost its client base in advisory solutions, diversify revenue sources, and expand geographically will likely support IB revenue growth.

GS & EVR: Price Performance, Valuation & Other Comparisons

So far this year, shares of Goldman and Evercore have risen 31.7% and 17.1%, respectively, against the industry’s growth of 26.8%.

Price Performance