Critical Comparison: Piper Sandler Companies (PIPR) vs. The Competition

Piper Sandler Companies (NYSE: PIPR) is one of 36 publicly-traded companies in the “Security brokers & dealers” industry, but how does it weigh in compared to its competitors? We will compare Piper Sandler Companies to similar companies based on the strength of its dividends, analyst recommendations, valuation, earnings, profitability, institutional ownership and risk.

Profitability

This table compares Piper Sandler Companies and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Piper Sandler Companies 12.86% 14.18% 8.39%
Piper Sandler Companies Competitors 12.37% 23.73% 7.53%

Institutional and Insider Ownership

78.5% of Piper Sandler Companies shares are held by institutional investors. Comparatively, 64.9% of shares of all “Security brokers & dealers” companies are held by institutional investors. 4.1% of Piper Sandler Companies shares are held by insiders. Comparatively, 20.5% of shares of all “Security brokers & dealers” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Piper Sandler Companies pays an annual dividend of $1.50 per share and has a dividend yield of 1.7%. Piper Sandler Companies pays out 20.4% of its earnings in the form of a dividend. As a group, “Security brokers & dealers” companies pay a dividend yield of 1.8% and pay out 31.5% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Piper Sandler Companies and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Piper Sandler Companies $846.30 million $111.71 million 11.79
Piper Sandler Companies Competitors $7.01 billion $1.09 billion 15.73

Piper Sandler Companies’ competitors have higher revenue and earnings than Piper Sandler Companies. Piper Sandler Companies is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings for Piper Sandler Companies and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Piper Sandler Companies 0 1 0 0 2.00
Piper Sandler Companies Competitors 589 1962 1847 97 2.32

Piper Sandler Companies currently has a consensus target price of $87.00, indicating a potential upside of 0.24%. As a group, “Security brokers & dealers” companies have a potential upside of 1.17%. Given Piper Sandler Companies’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Piper Sandler Companies has less favorable growth aspects than its competitors.

Risk and Volatility

Piper Sandler Companies has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Piper Sandler Companies’ competitors have a beta of 1.09, meaning that their average stock price is 9% more volatile than the S&P 500.

Summary

Piper Sandler Companies competitors beat Piper Sandler Companies on 10 of the 15 factors compared.

Piper Sandler Companies Company Profile

Piper Sandler Companies operates as an investment bank and asset management firm that serves corporations, private equity groups, public entities, non-profit entities, and institutional investors in the United States and internationally. The company's Capital Markets segment offers investment banking and institutional sales, trading, and research services for various equity and fixed income products. It raises capital through equity and debt financings; provides advisory services related to mergers and acquisitions, equity private placements, and debt and restructuring advisory for corporate clients; underwrites debt issuances; and offers municipal financial advisory and loan placement services, as well as various over-the-counter derivative products. It also provides public finance investment banking services that focus on state and local governments, and cultural and social service non-profit entities, as well as the education, healthcare, hospitality, senior living, and transportation sectors. In addition, this segment offers equity and fixed income advisory and trade execution services for institutional investors, and government and non-profit entities; and engages in trading activities. Further, it is involved in the merchant banking activities, which comprise equity investments in private companies, private equity funds, and other firm investments; and operates alternative asset management funds in merchant banking, energy, and senior living areas. The company's Asset Management segment provides asset management services with product offerings in equity securities and master limited partnerships to institutions and individuals through separately managed accounts, and open-end and closed-end funds. The company was formerly known as Piper Jaffray Companies and changed its name to Piper Sandler Companies in January 2020. Piper Sandler Companies was founded in 1895 and is headquartered in Minneapolis, Minnesota.

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