Contrasting Piper Jaffray Companies (PJC) & Freedom (FRHC)

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

Institutional and Insider Ownership

73.5% of Piper Jaffray Companies shares are held by institutional investors. 4.2% of Piper Jaffray Companies shares are held by company insiders. Comparatively, 82.1% of Freedom shares are held 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.

Dividends

Piper Jaffray Companies pays an annual dividend of $1.50 per share and has a dividend yield of 2.1%. Freedom does not pay a dividend.

Earnings and Valuation

This table compares Piper Jaffray Companies and Freedom’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Piper Jaffray Companies $895.19 million 1.18 -$61.93 million N/A N/A
Freedom $55.22 million 9.73 $19.23 million N/A N/A

Freedom has lower revenue, but higher earnings than Piper Jaffray Companies.

Risk and Volatility

Piper Jaffray Companies has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Freedom has a beta of -1.09, suggesting that its share price is 209% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Piper Jaffray Companies and Freedom, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Piper Jaffray Companies 0 1 0 0 2.00
Freedom 0 0 0 0 N/A

Piper Jaffray Companies presently has a consensus target price of $86.00, suggesting a potential upside of 20.50%. Given Piper Jaffray Companies’ higher possible upside, research analysts plainly believe Piper Jaffray Companies is more favorable than Freedom.

Profitability

This table compares Piper Jaffray Companies and Freedom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Piper Jaffray Companies -1.39% 11.27% 5.05%
Freedom N/A -20.43% -6.99%

Summary

Piper Jaffray Companies beats Freedom on 7 of the 11 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.

Freedom Company Profile

Freedom Holding Corp., through its subsidiaries, provides retail securities brokerage, investment research and counseling, securities trading, market making, corporate investment banking, and underwriting services. The company offers investment brokerage services for exchange-traded and over-the-counter corporate equity and debt securities, money market instruments, exchange traded options and futures contracts, government bonds, and mutual funds; capital raising solutions for corporate clients through initial public offerings, follow-on offerings, and private investments in public entities; and debt capital markets solutions for emerging growth and small market companies, and financial sponsors. It has operations primarily in Russia, Kazakhstan, Ukraine, Uzbekistan, Kyrgyzstan, and Cyprus. The company was formerly known as BMB Munai, Inc. and changed its name to Freedom Holding Corp. Freedom Holding Corp. was incorporated in 1981 and is headquartered in Almaty, Kazakhstan.

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