Diamond Hill Investment Group (NASDAQ:DHIL) & Piper Sandler Companies (NYSE:PIPR) Financial Contrast

Piper Sandler Companies (NYSE:PIPR – Get Free Report) and Diamond Hill Investment Group (NASDAQ:DHIL – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Profitability
This table compares Piper Sandler Companies and Diamond Hill Investment Group’s net margins, return on equity and return on assets.
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Earnings & Valuation
This table compares Piper Sandler Companies and Diamond Hill Investment Group”s gross revenue, earnings per share and valuation.
Piper Sandler Companies has higher revenue and earnings than Diamond Hill Investment Group. Diamond Hill Investment Group 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 and Institutional Ownership
72.8% of Piper Sandler Companies shares are owned by institutional investors. Comparatively, 65.5% of Diamond Hill Investment Group shares are owned by institutional investors. 2.7% of Piper Sandler Companies shares are owned by company insiders. Comparatively, 4.6% of Diamond Hill Investment Group 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.
Dividends
Piper Sandler Companies pays an annual dividend of $2.80 per share and has a dividend yield of 0.8%. Diamond Hill Investment Group pays an annual dividend of $6.00 per share and has a dividend yield of 4.2%. Piper Sandler Companies pays out 23.6% of its earnings in the form of a dividend. Diamond Hill Investment Group pays out 34.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Piper Sandler Companies has increased its dividend for 1 consecutive years.
Analyst Recommendations
This is a summary of recent ratings for Piper Sandler Companies and Diamond Hill Investment Group, as reported by MarketBeat.com.
Piper Sandler Companies currently has a consensus target price of $312.50, indicating a potential downside of 9.73%. Given Piper Sandler Companies’ stronger consensus rating and higher possible upside, research analysts clearly believe Piper Sandler Companies is more favorable than Diamond Hill Investment Group.
Volatility and Risk
Piper Sandler Companies has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Diamond Hill Investment Group has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.
Summary
Piper Sandler Companies beats Diamond Hill Investment Group on 11 of the 17 factors compared between the two stocks.
About Piper Sandler Companies
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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 Diamond Hill Investment Group
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Diamond Hill Investment Group, Inc., through its subsidiary, Diamond Hill Capital Management, Inc., provides investment advisory and fund administration services in the United States. It offers investment advisory and related services to clients through pooled vehicles, such as private fund; separately managed accounts; collective investment trusts; and other pooled vehicles, including sub-advised funds and model delivery programs. The company also provides fund administration services comprising portfolio and regulatory compliance, treasury and financial oversight, and general business management and governance of the funds, as well as oversight of back-office service providers, which include the custodian, fund accountant, and transfer agent. Diamond Hill Investment Group, Inc. was incorporated in 1990 and is based in Columbus, Ohio.