Moelis & (NYSE:MC) vs. Piper Jaffray Companies (PJC) Financial Contrast

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

Institutional and Insider Ownership

66.6% of Piper Jaffray Companies shares are owned by institutional investors. Comparatively, 89.6% of Moelis & shares are owned by institutional investors. 5.4% of Piper Jaffray Companies shares are owned by insiders. Comparatively, 64.5% of Moelis & shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Piper Jaffray Companies has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Moelis & has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500.

Earnings and Valuation

This table compares Piper Jaffray Companies and Moelis &’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Piper Jaffray Companies $821.58 million 1.01 -$1.51 million ($0.10) -549.45
Moelis & $700.69 million 1.50 $55.04 million $2.00 19.15

Moelis & has higher revenue, but lower earnings than Piper Jaffray Companies. Piper Jaffray Companies is trading at a lower price-to-earnings ratio than Moelis &, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Piper Jaffray Companies and Moelis &’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%
Moelis & 8.50% 52.98% 24.68%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Piper Jaffray Companies and Moelis &, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Piper Jaffray Companies 2 2 0 0 1.50
Moelis & 0 3 4 0 2.57

Piper Jaffray Companies currently has a consensus price target of $21.75, indicating a potential downside of 60.42%. Moelis & has a consensus price target of $37.57, indicating a potential downside of 1.90%. Given Moelis &’s stronger consensus rating and higher probable upside, analysts plainly believe Moelis & is more favorable than Piper Jaffray Companies.

Dividends

Piper Jaffray Companies pays an annual dividend of $1.25 per share and has a dividend yield of 2.3%. Moelis & pays an annual dividend of $1.48 per share and has a dividend yield of 3.9%. Piper Jaffray Companies pays out -1,249.9% of its earnings in the form of a dividend. Moelis & pays out 74.0% 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 Jaffray Companies has increased its dividend for 2 consecutive years.

Summary

Moelis & beats Piper Jaffray Companies on 14 of the 17 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 Moelis &

Moelis & Company is an investment banking advisory company. The Company provides strategic and financial advice to a client base, including corporations, governments and financial sponsors. The Company offers financial advisory services across various industry sectors. It advices its clients on decisions, including mergers and acquisitions (M&A), recapitalizations and restructurings, and other corporate finance matters. With 17 offices located in North and South America, Europe, the Middle East, Asia and Australia, the Company provided information flow and cross-border solutions as of December 31, 2016. The Company offers advisory services in all industries, including consumer, retail and restaurants; energy, power and infrastructure; financial institutions; financial sponsors; general industrials; healthcare; real estate, gaming, lodging and leisure, and technology, media and telecommunications. It advises clients on all aspects of public and private debt and equity transactions.

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