Financial Analysis: Piper Sandler Companies (NYSE:PIPR) vs. Wetouch Technology (NASDAQ:WETH)

Wetouch Technology (NASDAQ:WETH) and Piper Sandler Companies (NYSE:PIPR) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

72.8% of Piper Sandler Companies shares are held by institutional investors. 25.3% of Wetouch Technology shares are held by company insiders. Comparatively, 3.0% of Piper Sandler Companies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Wetouch Technology and Piper Sandler Companies, as provided by MarketBeat.

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

Piper Sandler Companies has a consensus target price of $181.50, indicating a potential downside of 11.95%. Given Piper Sandler Companies’ higher probable upside, analysts plainly believe Piper Sandler Companies is more favorable than Wetouch Technology.

Volatility & Risk

Wetouch Technology has a beta of -0.09, indicating that its share price is 109% less volatile than the S&P 500. Comparatively, Piper Sandler Companies has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wetouch Technology	$40.79 million	0.47	$17.39 million	N/A	N/A
Piper Sandler Companies	$1.35 billion	2.71	$85.49 million	$5.88	35.06

Piper Sandler Companies has higher revenue and earnings than Wetouch Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wetouch Technology	N/A	N/A	N/A
Piper Sandler Companies	7.33%	13.83%	8.64%

Summary

Piper Sandler Companies beats Wetouch Technology on 10 of the 11 factors compared between the two stocks.

About Wetouch Technology

Wetouch Technology Inc. engages in the research, development, manufacture, sale, and servicing of medium to large sized projected capacitive touchscreens in the Peoples Republic of China, Taiwan, South Korea, Germany, and internationally. The company offers various touch panels, including glass-glass, which are primarily used in GPS/car entertainment panels in mid-size and luxury cars, industrial human-machine interface (HMI), financial and banking terminals, point of sale, and lottery machines; glass-film-film products that are used in GPS and entertainment panels, industrial HMI, financial and banking terminals, lottery, and gaming industry; plastic-glass for use in GPS/entertainment panels, motor vehicle GPS, smart home products, robots, and charging stations; and glass-films used in industrial HMI. Wetouch Technology Inc. was founded in 2011 and is based in Meishan, China.

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.