Goldman Sachs Dominates Morgan Stanley in Investment Banking

The US investment banking landscape is dominated by two heavyweights: Goldman Sachs (GS) and Morgan Stanley (MS). A recent report from Goldman Sachs suggests that global M&A volumes rose 48% year-over-year in 2026, driven primarily by the surge in deal size. The firm expects this strength to continue, despite geopolitical and inflationary pressures.

Goldman Sachs has a significant lead over Morgan Stanley when it comes to total deal volume, advising on $1.31 trillion in deals in the first half of 2026 compared to Morgan Stanley's $880 billion. This is consistent with previous years, where Goldman Sachs has consistently topped the charts.

In terms of valuation, Goldman Sachs appears cheaper than Morgan Stanley on both price-to-earnings (P/E) and price-to-book (P/B) ratios. However, Morgan Stanley offers a slightly higher dividend yield.