Piper Sandler Companies (PIPR) and Its Peers Head to Head Survey

Piper Sandler Companies (NYSE:PIPR) is one of 1,743 public companies in the “Capital Markets” industry, but how does it contrast to its rivals? We will compare Piper Sandler Companies to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, profitability, earnings and analyst recommendations.

Institutional and Insider Ownership

72.8% of Piper Sandler Companies shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 3.1% of Piper Sandler Companies shares are held by company insiders. Comparatively, 13.0% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Piper Sandler Companies pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. Piper Sandler Companies pays out 18.8% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.2% of their earnings in the form of a dividend. Piper Sandler Companies has raised its dividend for 1 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations for Piper Sandler Companies and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Piper Sandler Companies	2	1	3	0	2.17
Piper Sandler Companies Competitors	5561	20147	22487	642	2.37

Piper Sandler Companies presently has a consensus price target of $84.00, suggesting a potential upside of 25.11%. As a group, “Capital Markets” companies have a potential upside of 25.08%. Given Piper Sandler Companies’ higher possible upside, analysts clearly believe Piper Sandler Companies is more favorable than its rivals.

Volatility and Risk

Piper Sandler Companies has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Piper Sandler Companies’ rivals have a beta of 0.79, suggesting that their average share price is 21% less volatile than the S&P 500.

Valuation and Earnings

This table compares Piper Sandler Companies and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Piper Sandler Companies	$2.04 billion	$281.33 million	15.80
Piper Sandler Companies Competitors	$2.48 billion	$398.65 million	17.45

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Piper Sandler Companies	14.53%	21.14%	13.98%
Piper Sandler Companies Competitors	318.28%	11.55%	3.69%

Summary

Piper Sandler Companies rivals beat Piper Sandler Companies on 8 of the 15 factors compared.

About Piper Sandler Companies

Piper Sandler Companies operates as an investment bank and institutional securities firm that serves corporations, private equity groups, public entities, non-profit entities, and institutional investors in the United States and internationally. The company offers investment banking and institutional sales, trading, and research services for various equity and fixed income products. It provides advisory services, such as mergers and acquisitions, equity private placements, and debt and restructuring advisory; raises capital through equity and debt financings; underwrites municipal issuances; and offers municipal financial advisory and loan placement services, as well as various over-the-counter derivative products. The company also offers 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, it provides equity and fixed income advisory and trade execution services for institutional investors, and government and non-profit entities. Further, the company is involved in the alternative asset management funds merchant banking and healthcare to invest firm capital and to manage capital from outside investors, as well as trading activities. 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.