SBI (OTCMKTS:SBHGF – Get Free Report) and Piper Sandler Companies (NYSE:PIPR – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.
Profitability
This table compares SBI and Piper Sandler Companies’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
SBI | 14.51% | 12.48% | 0.75% |
Piper Sandler Companies | 13.18% | 18.67% | 12.85% |
Risk & Volatility
SBI has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Piper Sandler Companies has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
SBI | 0 | 0 | 0 | 0 | 0.00 |
Piper Sandler Companies | 0 | 2 | 1 | 0 | 2.33 |
Piper Sandler Companies has a consensus price target of $312.50, suggesting a potential downside of 6.12%. Given Piper Sandler Companies’ stronger consensus rating and higher possible upside, analysts plainly believe Piper Sandler Companies is more favorable than SBI.
Insider & Institutional Ownership
72.8% of Piper Sandler Companies shares are held by institutional investors. 2.7% of Piper Sandler Companies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares SBI and Piper Sandler Companies”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
SBI | $9.48 billion | 1.48 | $1.07 billion | $4.73 | 9.85 |
Piper Sandler Companies | $1.53 billion | 3.86 | $181.11 million | $11.85 | 28.09 |
SBI has higher revenue and earnings than Piper Sandler Companies. SBI is trading at a lower price-to-earnings ratio than Piper Sandler Companies, indicating that it is currently the more affordable of the two stocks.
Summary
Piper Sandler Companies beats SBI on 11 of the 14 factors compared between the two stocks.
About SBI
SBI Holdings, Inc. engages in the online securities and investment businesses. It operates through five business segments: Financial Services Business, Asset Management Business, Investment Business, Crypto-Asset Business, and Non-financial Business segments. The Financial Services Business segment consists of a range of finance-related business, including securities brokerage business; banking services business; and life, property, and casualty insurance business. The Asset Management Business segment includes setting, solicitation, and management of investment trust; investment advice; and financial products information. The Investment Business segment includes fund management and investment in Internet technology, fintech, blockchain, finance, and biotechnology-related venture companies; private equity; and funds management businesses. The Crypto-asset Business segment provides crypto-asset exchange and trading services. The Non-Financial Business segment consists of biotechnology; development and distribution of pharmaceutical products, health foods, and cosmetics with 5-aminolevulinic acid; research and development of antibody drugs and nucleic acid medicine in the field of cancer and immunology; the digitization of medical and health information; provision of solutions and services that promote the use of medical big data, medical finance; business working on advanced fields related to Web 3.0; and renewable energy business. The company is also involved in the real estate secured loans, online mobile game, and e-sports related businesses. In addition, it operates and develops cybersecurity systems; exports used cars; offers back-office support services; and develops, operates, manages, and invests in real estate properties. The company was formerly known as Softbank Investment Corporation and changed its name to SBI Holdings, Inc. in July 2005. SBI Holdings, Inc. was incorporated in 1999 and is headquartered in Tokyo, Japan.
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. It offers investment banking services and institutional sales, trading, and research services for various equity and fixed income products; advisory services, such as mergers and acquisitions, equity and debt private placements, and debt and restructuring advisory; raises capital through equity and debt financings; underwrites municipal issuances; and 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, housing, and transportation sectors. In addition, the company offers equity and fixed income advisory and trade execution services for institutional investors, corporations, and government and non-profit entities. Further, it is involved in the alternative asset management funds merchant banking and healthcare to invest firm capital and to manage capital from outside investors. 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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