Piper Sandler Companies (NYSE:PIPR) and DeFi Technologies (NASDAQ:DEFT) Head-To-Head Review

DeFi Technologies (NASDAQ:DEFT) and Piper Sandler Companies (NYSE:PIPR) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Profitability

This table compares DeFi Technologies and Piper Sandler Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DeFi Technologies	39.65%	15.43%	2.64%
Piper Sandler Companies	14.51%	21.92%	14.60%

Volatility and Risk

DeFi Technologies has a beta of 4.14, meaning that its share price is 314% more volatile than the S&P 500. Comparatively, Piper Sandler Companies has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Valuation and Earnings

This table compares DeFi Technologies and Piper Sandler Companies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DeFi Technologies	$99.14 million	1.69	$62.41 million	$0.06	7.18
Piper Sandler Companies	$2.05 billion	2.23	$281.33 million	$4.32	14.97

Piper Sandler Companies has higher revenue and earnings than DeFi Technologies. DeFi Technologies is trading at a lower price-to-earnings ratio than Piper Sandler Companies, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

72.8% of Piper Sandler Companies shares are held by institutional investors. 3.1% of Piper Sandler Companies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for DeFi Technologies and Piper Sandler Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DeFi Technologies	0	2	3	0	2.60
Piper Sandler Companies	2	1	3	0	2.17

DeFi Technologies presently has a consensus target price of $1.44, indicating a potential upside of 233.45%. Piper Sandler Companies has a consensus target price of $90.81, indicating a potential upside of 40.40%. Given DeFi Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe DeFi Technologies is more favorable than Piper Sandler Companies.

Summary

Piper Sandler Companies beats DeFi Technologies on 9 of the 13 factors compared between the two stocks.

About DeFi Technologies

DeFi Technologies, Inc. engages in the provision of investment services. It plans to acquire equity, debt, or other securities of publicly traded or private companies or other entities. The firm offers DeFi ETNs, DeFi Governance, DeFi Venture and DeFi Treasury. The company was founded by Olivier Francois Roussy Newton and Wouter Witvoet on April 14, 1986 and is headquartered in Toronto, Canada.

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. The company offers investment banking and institutional sales, trading, and research services for various equity and fixed income products. It provides advisory services, such as mergers and acquisitions, equity private placements, and debt and restructuring advisory; raises capital through equity and debt financings; underwrites municipal issuances; and offers municipal financial advisory and loan placement services, as well as various over-the-counter derivative products. The company also offers 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, and transportation sectors. In addition, it provides equity and fixed income advisory and trade execution services for institutional investors, and government and non-profit entities. Further, the company is involved in the alternative asset management funds merchant banking and healthcare to invest firm capital and to manage capital from outside investors, as well as trading activities. 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.