WisdomTree (NYSE:WT – Get Rating) and Piper Sandler Companies (NYSE:PIPR – Get Rating) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.
WisdomTree pays an annual dividend of $0.12 per share and has a dividend yield of 2.4%. Piper Sandler Companies pays an annual dividend of $2.40 per share and has a dividend yield of 1.7%. WisdomTree pays out 22.2% of its earnings in the form of a dividend. Piper Sandler Companies pays out 22.2% 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. Piper Sandler Companies has increased its dividend for 2 consecutive years. WisdomTree is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of current ratings for WisdomTree and Piper Sandler Companies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Piper Sandler Companies||0||1||1||0||2.50|
Insider & Institutional Ownership
96.0% of WisdomTree shares are owned by institutional investors. Comparatively, 67.0% of Piper Sandler Companies shares are owned by institutional investors. 7.8% of WisdomTree shares are owned by company insiders. Comparatively, 3.3% of Piper Sandler Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
WisdomTree has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Piper Sandler Companies has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.
This table compares WisdomTree and Piper Sandler Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Piper Sandler Companies||11.03%||23.87%||13.44%|
Valuation and Earnings
This table compares WisdomTree and Piper Sandler Companies’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WisdomTree||$304.32 million||2.44||$49.80 million||$0.54||9.39|
|Piper Sandler Companies||$2.03 billion||1.27||$278.51 million||$10.79||13.45|
Piper Sandler Companies has higher revenue and earnings than WisdomTree. WisdomTree 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.
Piper Sandler Companies beats WisdomTree on 9 of the 16 factors compared between the two stocks.
WisdomTree, Inc., through its subsidiaries, operates as an exchange-traded funds (ETFs) sponsor and asset manager. It offers ETFs in equities, currency, fixed income, and alternatives asset classes. The company also licenses its indexes to third parties for proprietary products, as well as offers a platform to promote the use of WisdomTree ETFs in 401(k) plans. It develops index using its fundamentally weighted index methodology. In addition, the company provides investment advisory services. The company was founded in 1985 and is based in New York, New York.
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.
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