Upstart (NASDAQ:UPST) vs. Pagaya Technologies (NASDAQ:PGY) Head to Head Contrast

Pagaya Technologies (NASDAQ:PGYGet Free Report) and Upstart (NASDAQ:UPSTGet Free Report) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Institutional and Insider Ownership

57.1% of Pagaya Technologies shares are owned by institutional investors. Comparatively, 63.0% of Upstart shares are owned by institutional investors. 18.1% of Upstart shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Pagaya Technologies and Upstart’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pagaya Technologies $812.05 million 1.14 -$128.44 million ($1.41) -9.28
Upstart $513.56 million 4.15 -$240.13 million ($2.06) -11.77

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

Profitability

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

Net Margins Return on Equity Return on Assets
Pagaya Technologies -10.53% -4.23% -2.30%
Upstart -32.59% -27.89% -9.14%

Volatility and Risk

Pagaya Technologies has a beta of 6.44, meaning that its stock price is 544% more volatile than the S&P 500. Comparatively, Upstart has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Pagaya Technologies and Upstart, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pagaya Technologies 0 2 6 0 2.75
Upstart 6 6 0 0 1.50

Pagaya Technologies presently has a consensus price target of $26.94, indicating a potential upside of 105.71%. Upstart has a consensus price target of $21.65, indicating a potential downside of 10.68%. Given Pagaya Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Pagaya Technologies is more favorable than Upstart.

Summary

Pagaya Technologies beats Upstart on 11 of the 14 factors compared between the two stocks.

About Pagaya Technologies

(Get Free Report)

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 Upstart

(Get Free Report)

Upstart Holdings, Inc., together with its subsidiaries, operates a cloud-based artificial intelligence (AI) lending platform in the United States. Its platform includes personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar loans that connects consumer demand for loans to its to bank and credit unions. Upstart Holdings, Inc. was founded in 2012 and is headquartered in San Mateo, California.

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