Piper Sandler Companies (NYSE:PIPR) vs. Wetouch Technology (NASDAQ:WETH) Critical Review

Piper Sandler Companies (NYSE:PIPR) and Wetouch Technology (NASDAQ:WETH) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Piper Sandler Companies and Wetouch Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Piper Sandler Companies	0	2	1	0	2.33
Wetouch Technology	0	0	0	0	N/A

Piper Sandler Companies presently has a consensus price target of $181.50, suggesting a potential downside of 11.95%. Given Piper Sandler Companies’ higher probable upside, equities analysts clearly believe Piper Sandler Companies is more favorable than Wetouch Technology.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Piper Sandler Companies	$1.35 billion	2.71	$85.49 million	$5.88	35.06
Wetouch Technology	$40.79 million	0.47	$17.39 million	N/A	N/A

Piper Sandler Companies has higher revenue and earnings than Wetouch Technology.

Profitability

This table compares Piper Sandler Companies and Wetouch Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Piper Sandler Companies	7.33%	13.83%	8.64%
Wetouch Technology	N/A	N/A	N/A

Institutional and Insider Ownership

72.8% of Piper Sandler Companies shares are owned by institutional investors. 3.0% of Piper Sandler Companies shares are owned by company insiders. Comparatively, 25.3% of Wetouch Technology shares are owned by company 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.

Risk and Volatility

Piper Sandler Companies has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Wetouch Technology has a beta of -0.09, meaning that its stock price is 109% less volatile than the S&P 500.

Summary

Piper Sandler Companies beats Wetouch Technology on 10 of the 11 factors compared between the two stocks.

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.

About Wetouch Technology

Wetouch Technology Inc. engages in the research, development, manufacture, sale, and servicing of medium to large sized projected capacitive touchscreens in the Peoples Republic of China, Taiwan, South Korea, Germany, and internationally. The company offers various touch panels, including glass-glass, which are primarily used in GPS/car entertainment panels in mid-size and luxury cars, industrial human-machine interface (HMI), financial and banking terminals, point of sale, and lottery machines; glass-film-film products that are used in GPS and entertainment panels, industrial HMI, financial and banking terminals, lottery, and gaming industry; plastic-glass for use in GPS/entertainment panels, motor vehicle GPS, smart home products, robots, and charging stations; and glass-films used in industrial HMI. Wetouch Technology Inc. was founded in 2011 and is based in Meishan, China.