Piper Jaffray Companies (NYSE: PJC) and FBR & Co (NASDAQ:FBRC) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
Volatility & Risk
Piper Jaffray Companies has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, FBR & Co has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.
Institutional and Insider Ownership
78.4% of Piper Jaffray Companies shares are owned by institutional investors. Comparatively, 72.4% of FBR & Co shares are owned by institutional investors. 5.4% of Piper Jaffray Companies shares are owned by company insiders. Comparatively, 13.9% of FBR & Co shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Piper Jaffray Companies and FBR & Co’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Piper Jaffray Companies||0.40%||9.63%||3.81%|
|FBR & Co||3.49%||4.34%||0.49%|
Earnings and Valuation
This table compares Piper Jaffray Companies and FBR & Co’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Piper Jaffray Companies||$821.58 million||0.91||-$1.29 million||($0.10)||-582.44|
|FBR & Co||N/A||N/A||N/A||($9.00)||-1.95|
FBR & Co has higher revenue, but lower earnings than Piper Jaffray Companies. Piper Jaffray Companies is trading at a lower price-to-earnings ratio than FBR & Co, indicating that it is currently the more affordable of the two stocks.
Piper Jaffray Companies pays an annual dividend of $1.25 per share and has a dividend yield of 2.1%. FBR & Co pays an annual dividend of $0.80 per share and has a dividend yield of 4.6%. Piper Jaffray Companies pays out -1,249.9% of its earnings in the form of a dividend. FBR & Co pays out -8.9% 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.
This is a summary of current recommendations for Piper Jaffray Companies and FBR & Co, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Piper Jaffray Companies||2||2||0||0||1.50|
|FBR & Co||0||1||0||0||2.00|
Piper Jaffray Companies currently has a consensus price target of $21.75, suggesting a potential downside of 62.66%. Given Piper Jaffray Companies’ higher probable upside, analysts plainly believe Piper Jaffray Companies is more favorable than FBR & Co.
Piper Jaffray Companies beats FBR & Co on 8 of the 12 factors compared between the two stocks.
About Piper Jaffray Companies
Piper Jaffray Companies is an investment bank and asset management company. The Company’s segments include Capital Markets and Asset Management. The Capital Markets segment provides investment banking and institutional sales, trading and research services for various equity and fixed income products. The Asset Management segment includes its traditional asset management business and its investments in registered funds and private funds or partnerships that it manages. It provides a range of products and services, including equity and debt capital markets products; public finance services; financial advisory services; equity and fixed income institutional brokerage; equity and fixed income research, and asset management services. The Company serves the needs of corporations, private equity groups, public entities, non-profit entities and institutional investors in the United States and internationally.
About FBR & Co
FBR & Co. is an investment banking and institutional brokerage company. The Company focuses on the equity capital markets. The Company operates through two segments: capital markets, which includes investment banking, institutional brokerage and research, and principal investing. Through its broker-dealer operating subsidiaries, the Company focuses its business on providing: capital raising services, including underwriting and placement of public and private equity, equity-linked and debt securities; financial advisory services, including merger and acquisition (M&A) advisory, restructuring, liability management, recapitalization and strategic alternative analysis; institutional sales and trading services focused on equities, equity-linked securities, listed options, high-yield bonds, senior debt and bank loans, as well as securities lending activities, and differentiated securities research.
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