Analyzing Siebert Financial (SIEB) & Piper Jaffray Companies (PJC)

Piper Jaffray Companies (NYSE:PJC) and Siebert Financial (NASDAQ:SIEB) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Institutional & Insider Ownership

73.7% of Piper Jaffray Companies shares are owned by institutional investors. Comparatively, 4.0% of Siebert Financial shares are owned by institutional investors. 4.1% of Piper Jaffray Companies shares are owned by insiders. Comparatively, 67.9% of Siebert Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Piper Jaffray Companies has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Siebert Financial has a beta of -0.1, indicating that its stock price is 110% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Piper Jaffray Companies and Siebert Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Piper Jaffray Companies 0 1 0 0 2.00
Siebert Financial 0 0 0 0 N/A

Dividends

Piper Jaffray Companies pays an annual dividend of $1.50 per share and has a dividend yield of 2.0%. Siebert Financial does not pay a dividend. Piper Jaffray Companies pays out 24.5% of its earnings in the form of a dividend.

Profitability

This table compares Piper Jaffray Companies and Siebert Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Piper Jaffray Companies 6.44% 11.72% 5.83%
Siebert Financial 39.83% 107.30% 93.82%

Earnings & Valuation

This table compares Piper Jaffray Companies and Siebert Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Piper Jaffray Companies $800.99 million 1.39 $57.04 million $6.13 12.40
Siebert Financial $30.04 million 10.34 $11.96 million N/A N/A

Piper Jaffray Companies has higher revenue and earnings than Siebert Financial.

Summary

Siebert Financial beats Piper Jaffray Companies on 7 of the 12 factors compared between the two stocks.

About Piper Jaffray Companies

Piper Jaffray 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 capabilities 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 for customer facilitation and strategic trading purposes. Further, it is involved in the merchant banking activities, which comprise equity investments in late stage private companies, and private equity funds and other firm investments; and operates alternative asset management funds in merchant banking, energy, and senior living to invest firm capital and to manage capital from outside investors. 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. Piper Jaffray Companies was founded in 1895 and is headquartered in Minneapolis, Minnesota.

About Siebert Financial

Siebert Financial Corp., through its subsidiaries, engages in the retail discount brokerage and investment advisory businesses. The company offers online and traditional brokerage, and related services to retail investors through a broker on the telephone, a wireless device, or through the Internet; various value added services, such as access to account information; independent retail execution services; and retail customer services. It also acts as an agent on various transactions for its self-directed retirement accounts, as well as lends customers a portion of the market value of certain securities held in the customer's account. In addition, the company provides custodial services; and data technology platform that offers services, such as email and messaging, market data systems and third party trading systems, business productivity tools, and customer relationship management systems. It maintains 10 retail discount brokerage offices. The company was founded in 1886 and is headquartered in New York, New York.

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