Piper Sandler Companies (NYSE:PIPR) vs. BlackRock (NYSE:BLK) Financial Comparison

Piper Sandler Companies (NYSE:PIPR) and BlackRock (NYSE:BLK) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Profitability

This table compares Piper Sandler Companies and BlackRock’s 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%
BlackRock 30.79% 14.05% 2.73%

Insider and Institutional Ownership

78.5% of Piper Sandler Companies shares are owned by institutional investors. Comparatively, 81.4% of BlackRock shares are owned by institutional investors. 4.1% of Piper Sandler Companies shares are owned by insiders. Comparatively, 1.4% of BlackRock shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Piper Sandler Companies and BlackRock, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Piper Sandler Companies 0 1 0 0 2.00
BlackRock 0 1 10 0 2.91

Piper Sandler Companies currently has a consensus target price of $87.00, indicating a potential upside of 0.24%. BlackRock has a consensus target price of $550.55, indicating a potential downside of 3.17%. Given Piper Sandler Companies’ higher possible upside, analysts plainly believe Piper Sandler Companies is more favorable than BlackRock.

Valuation & Earnings

This table compares Piper Sandler Companies and BlackRock’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Piper Sandler Companies $846.30 million 1.47 $111.71 million $7.36 11.79
BlackRock $14.54 billion 6.04 $4.48 billion $28.48 19.96

BlackRock has higher revenue and earnings than Piper Sandler Companies. Piper Sandler Companies is trading at a lower price-to-earnings ratio than BlackRock, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Piper Sandler Companies has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, BlackRock has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Dividends

Piper Sandler Companies pays an annual dividend of $1.50 per share and has a dividend yield of 1.7%. BlackRock pays an annual dividend of $13.20 per share and has a dividend yield of 2.3%. Piper Sandler Companies pays out 20.4% of its earnings in the form of a dividend. BlackRock pays out 46.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BlackRock has increased its dividend for 10 consecutive years. BlackRock is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

BlackRock beats Piper Sandler Companies on 12 of the 17 factors compared between the two stocks.

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.

BlackRock Company Profile

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Gurgaon, India; Hong Kong; Greenwich, Connecticut; Princeton, New Jersey; Edinburgh, United Kingdom; Sydney, Australia; Taipei, Taiwan; Singapore; Sao Paulo, Brazil; Philadelphia, Pennsylvania; Washington, District of Columbia; Toronto, Canada; Wilmington, Delaware; and San Francisco, California.

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