Reviewing Piper Jaffray Companies (PJC) & Charles Schwab Co. Common Stock (SCHW)

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Piper Jaffray Companies (NYSE: SCHW) and Charles Schwab Co. Common Stock (NYSE:SCHW) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Risk & Volatility

Piper Jaffray Companies has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Charles Schwab Co. Common Stock has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Profitability

This table compares Piper Jaffray Companies and Charles Schwab Co. Common Stock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Piper Jaffray Companies -9.68% 11.47% 5.02%
Charles Schwab Co. Common Stock 30.83% 17.96% 1.18%

Valuation and Earnings

This table compares Piper Jaffray Companies and Charles Schwab Co. Common Stock’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Piper Jaffray Companies $895.19 million 1.33 -$61.93 million N/A N/A
Charles Schwab Co. Common Stock $8.62 billion 8.06 $2.35 billion $1.64 31.35

Charles Schwab Co. Common Stock has higher revenue and earnings than Piper Jaffray Companies.

Insider and Institutional Ownership

74.0% of Piper Jaffray Companies shares are owned by institutional investors. Comparatively, 80.3% of Charles Schwab Co. Common Stock shares are owned by institutional investors. 4.2% of Piper Jaffray Companies shares are owned by insiders. Comparatively, 11.5% of Charles Schwab Co. Common Stock shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Piper Jaffray Companies pays an annual dividend of $1.50 per share and has a dividend yield of 1.9%. Charles Schwab Co. Common Stock pays an annual dividend of $0.52 per share and has a dividend yield of 1.0%. Charles Schwab Co. Common Stock pays out 31.7% of its earnings in the form of a dividend. Charles Schwab Co. Common Stock has increased its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for Piper Jaffray Companies and Charles Schwab Co. Common Stock, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Piper Jaffray Companies 0 3 0 0 2.00
Charles Schwab Co. Common Stock 1 5 8 0 2.50

Piper Jaffray Companies currently has a consensus target price of $86.00, suggesting a potential upside of 9.69%. Charles Schwab Co. Common Stock has a consensus target price of $57.57, suggesting a potential upside of 11.96%. Given Charles Schwab Co. Common Stock’s stronger consensus rating and higher probable upside, analysts plainly believe Charles Schwab Co. Common Stock is more favorable than Piper Jaffray Companies.

Summary

Charles Schwab Co. Common Stock beats Piper Jaffray Companies on 13 of the 16 factors compared between the two stocks.

Piper Jaffray Companies Company Profile

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 relating to mergers and acquisitions, equity private placements, and debt and restructuring advisory services for corporate clients; underwrites debt issuances; and offers municipal financial advisory and loan placement services, as well as various over-the-counter derivative products. This segment also provides public finance investment banking capabilities that focus on state and local governments, cultural and social service non-profit entities, education, healthcare, hospitality, senior living, and transportation sectors. In addition, it offers equity and fixed income advisory and trade execution services for institutional investors, and government and non-profit entities; and is involved in trading activities for customer facilitation and strategic trading purposes. Further, this segment engages in merchant banking activities, which comprise equity or debt investments in late stage private companies, and investments in private equity funds and other firm investments' and has alternative asset management funds in merchant banking, energy, and senior living to invest firm capital, as well as to manage capital from outside investors. The Asset Management segment provides traditional 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.

Charles Schwab Co. Common Stock Company Profile

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor, retirement plan, and mutual fund clearing services. The Advisor Services segment provides custodial, trading, and support services; and retirement business and corporate brokerage retirement services. This segment provides brokerage accounts with cash management capabilities; third-party mutual funds, as well as proprietary mutual funds, plus mutual fund trading, and clearing services to broker-dealers; and exchange-traded funds (ETFs), including proprietary and third-party ETFs. It also offers advice solutions, such as managed portfolios of proprietary and third-party mutual funds and ETFs, separately managed accounts, customized personal advice for tailored portfolios, and specialized planning and portfolio management. In addition, this segment provides banking products and services, including checking and savings accounts, certificates of deposit, first lien residential real estate mortgage loans, home equity loans and lines of credit, and pledged asset lines; and trust services comprising trust custody services, personal trust reporting services, and administrative trustee services. The company serves individuals and institutional clients in the United States, the Commonwealth of Puerto Rico, England, Hong Kong, Singapore, and Australia. The Charles Schwab Corporation was founded in 1971 and is headquartered in San Francisco, California.

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