MarketAxess Holdings Inc. (MKTX) vs Piper Sandler Companies (PIPR)

MarketAxess Holdings Inc. and Piper Sandler Companies are both Capital Markets companies. MarketAxess Holdings Inc. is the larger, with a market value of $5.8B against $5.0B — 1.1× the size. Piper Sandler Companies trades at the lower P/E: 15.9× against 19.3×. Piper Sandler Companies grew revenue faster over the last twelve months: 32.4% against 3.93%. MarketAxess Holdings Inc. has the higher net margin (35.2% vs 14.5%) and the lower return on invested capital (24.8% vs 26.1%). Both pay a dividend; Piper Sandler Companies yields more (3.12% vs 1.35%). Across the 23 metrics below, Piper Sandler Companies leads on 18 and MarketAxess Holdings Inc. on 5.

Valuation

Metric MKTX PIPR Capital Markets median
P/E 19.32 15.88 15.78
P/S 6.64 2.32 2.32
P/B 4.67 3.12 1.89
Price to free cash flow 40.54 10.06 6.25
EV/EBITDA 12.40 8.21 8.87
EV/Sales 6.24 2.28 2.28
Earnings yield 5.18% 6.30% (3.77%)
Free cash flow yield 2.47% 9.94% (1.49%)

Profitability

Metric MKTX PIPR Capital Markets median
Gross margin 100.00% 99.05% 62.80%
Operating margin 40.50% 24.96% 0.00%
Net margin 35.22% 14.53% (0.55%)
Free cash flow margin 16.39% 23.02% 0.00%
Return on equity 23.34% 20.72% 0.00%
Return on assets 13.94% 14.34% 0.00%
Return on invested capital 24.79% 26.13% 0.00%

Growth

Metric MKTX PIPR Capital Markets median
Revenue growth (TTM) 3.93% 32.39% 21.02%
EPS growth (last fiscal year) (8.79%) 54.49% —
Revenue growth, 5-year CAGR 4.19% 8.93% 18.16%
Net income growth, 5-year CAGR (3.80%) 47.35% 0.00%

Health

Metric MKTX PIPR Capital Markets median
Debt to equity 0.09 0.00 0.08
Current ratio 1.85 1.41 1.51
Net debt to EBITDA (1.22) (1.72) (0.24)

Dividend

Metric MKTX PIPR Capital Markets median
Dividend yield 1.35% 3.12% 2.20%
Payout ratio 0.42 0.49 0.00

Size

Metric MKTX PIPR Capital Markets median
Market cap 5.76b 5.02b 724.58m

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