Critical Analysis: Piper Sandler Companies (NYSE:PIPR) & China Finance (OTCMKTS:CHFI)

Piper Sandler Companies (NYSE:PIPR) and China Finance (OTCMKTS:CHFI) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Piper Sandler Companies and China Finance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Piper Sandler Companies	0	2	1	0	2.33
China Finance	0	0	0	0	N/A

Piper Sandler Companies currently has a consensus target price of $181.50, indicating a potential downside of 3.01%.

Institutional & Insider Ownership

72.8% of Piper Sandler Companies shares are owned by institutional investors. 3.3% of Piper Sandler Companies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Piper Sandler Companies has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, China Finance has a beta of 3.23, suggesting that its stock price is 223% more volatile than the S&P 500.

Valuation and Earnings

This table compares Piper Sandler Companies and China Finance’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Piper Sandler Companies	$1.30 billion	2.55	$85.49 million	$4.94	37.88
China Finance	N/A	N/A	N/A	N/A	N/A

Piper Sandler Companies has higher revenue and earnings than China Finance.

Profitability

This table compares Piper Sandler Companies and China Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Piper Sandler Companies	6.33%	13.27%	8.48%
China Finance	N/A	N/A	N/A

Summary

Piper Sandler Companies beats China Finance on 7 of the 8 factors compared between the two stocks.

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

About China Finance

China Finance, Inc. operates as a financial services company and provides guarantees to small and medium enterprises. It provides surety guarantees to Chinese SMEs seeking to become publicly-traded companies in the United States by being acquired by a United States reporting company in a reverse merger or merger and acquisition transaction; loan guarantees to assist SMEs and individuals in obtaining loans from Chinese banks for business operations and/or personal use; and various direct loans for business operations. The company also offers consulting services, including business and introduction services, translation services, and access to office facilities, such as conference rooms, computers, telephone, and fax lines. The company was formerly known as Value Global International Limited and changed its name to China Finance, Inc. in September 2004. The company was incorporated in 2000 and is based in New York, New York.