Contrasting Pagaya Technologies (NASDAQ:PGY) & MDB Capital (NASDAQ:MDBH)

Pagaya Technologies (NASDAQ:PGY) and MDB Capital (NASDAQ:MDBH) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Institutional and Insider Ownership

57.1% of Pagaya Technologies shares are owned by institutional investors. Comparatively, 0.3% of MDB Capital shares are owned by institutional investors. 49.6% of Pagaya Technologies shares are owned by company insiders. Comparatively, 55.5% of MDB Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Pagaya Technologies and MDB Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pagaya Technologies	-39.20%	0.82%	0.36%
MDB Capital	N/A	-75.31%	-63.59%

Risk & Volatility

Pagaya Technologies has a beta of 5.98, meaning that its stock price is 498% more volatile than the S&P 500. Comparatively, MDB Capital has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Pagaya Technologies and MDB Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pagaya Technologies	0	2	7	0	2.78
MDB Capital	0	0	0	0	0.00

Pagaya Technologies presently has a consensus price target of $20.61, indicating a potential upside of 81.60%. Given Pagaya Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Pagaya Technologies is more favorable than MDB Capital.

Earnings & Valuation

This table compares Pagaya Technologies and MDB Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pagaya Technologies	$1.00 billion	0.83	-$401.41 million	($5.50)	-2.06
MDB Capital	$1.30 million	47.11	-$6.97 million	($2.87)	-2.30

MDB Capital has lower revenue, but higher earnings than Pagaya Technologies. MDB Capital is trading at a lower price-to-earnings ratio than Pagaya Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Pagaya Technologies beats MDB Capital on 9 of the 14 factors compared between the two stocks.

About Pagaya Technologies

Pagaya Technologies Ltd., a product-focused technology company, deploys data science and proprietary artificial intelligence-powered technology for financial institutions and investors in the United States, Israel, the Cayman Islands, and internationally. The company develops and implements proprietary artificial intelligence technology and related software solutions to assist partners to originate loans and other assets. Its partners include high-growth financial technology companies, incumbent banks and financial institutions, auto finance providers, and residential real estate service providers. Pagaya Technologies Ltd. was incorporated in 2016 and is headquartered in New York, New York.

About MDB Capital

MDB Capital Holdings, LLC, through its subsidiaries, primarily operates as a broker-dealer. The company operates through two segments, Broker Dealer & Intellectual Property Service, and Technology Development. The Broker Dealer & Intellectual Property Service segment operates as a full-service broker dealer that focuses on conducting private and public securities offerings, as well as providing research services for investment banking due diligence. The Technology Development segment engages in the synthetic biology technology development business. The company was founded in 1997 and is based in Addison, Texas.