Critical Review: Motive Capital (OTCMKTS:MOTVU) vs. Piper Sandler Companies (NYSE:PIPR)

Piper Sandler Companies (NYSE:PIPR) and Motive Capital (OTCMKTS:MOTVU) are both financial services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Piper Sandler Companies	14.77%	22.50%	15.90%
Motive Capital	N/A	N/A	N/A

Insider and Institutional Ownership

72.8% of Piper Sandler Companies shares are owned by institutional investors. 2.7% of Piper Sandler Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Piper Sandler Companies and Motive Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Piper Sandler Companies	1	2	2	1	2.50
Motive Capital	0	0	0	0	0.00

Piper Sandler Companies currently has a consensus target price of $389.67, suggesting a potential upside of 24.99%. Given Piper Sandler Companies’ stronger consensus rating and higher possible upside, analysts plainly believe Piper Sandler Companies is more favorable than Motive Capital.

Earnings and Valuation

This table compares Piper Sandler Companies and Motive Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Piper Sandler Companies	$1.90 billion	2.90	$281.33 million	$15.81	19.72
Motive Capital	N/A	N/A	N/A	N/A	N/A

Piper Sandler Companies has higher revenue and earnings than Motive Capital.

Summary

Piper Sandler Companies beats Motive Capital on 10 of the 10 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. 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.

About Motive Capital

Motive Capital Corp is a newly incorporated blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities.