Analyzing Pagaya Technologies (NASDAQ:PGY) and MGT Capital Investments (OTCMKTS:MGTI)

MGT Capital Investments (OTCMKTS:MGTI) and Pagaya Technologies (NASDAQ:PGY) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Institutional & Insider Ownership

57.1% of Pagaya Technologies shares are owned by institutional investors. 3.8% of MGT Capital Investments shares are owned by insiders. Comparatively, 49.6% of Pagaya Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

MGT Capital Investments has a beta of 2.73, suggesting that its share price is 173% more volatile than the S&P 500. Comparatively, Pagaya Technologies has a beta of 6.11, suggesting that its share price is 511% more volatile than the S&P 500.

Valuation & Earnings

This table compares MGT Capital Investments and Pagaya Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGT Capital Investments	$400,000.00	0.00	-$6.13 million	N/A	N/A
Pagaya Technologies	$939.31 million	0.76	-$128.44 million	($2.54)	-3.83

MGT Capital Investments has higher earnings, but lower revenue than Pagaya Technologies.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for MGT Capital Investments and Pagaya Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGT Capital Investments	0	0	0	0	0.00
Pagaya Technologies	0	2	6	0	2.75

Pagaya Technologies has a consensus price target of $21.13, indicating a potential upside of 116.89%. Given Pagaya Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Pagaya Technologies is more favorable than MGT Capital Investments.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MGT Capital Investments	N/A	N/A	N/A
Pagaya Technologies	-18.48%	1.01%	0.47%

Summary

Pagaya Technologies beats MGT Capital Investments on 9 of the 11 factors compared between the two stocks.

About MGT Capital Investments

MGT Capital Investments, Inc. engages in cryptocurrency mining business in the United States. The company owns and manages a bitcoin mining facility in LaFayette, Georgia. It also leases space to third parties and self-mining operations; and provides hosting services for third-party owners of miners. The company was incorporated in 1977 and is headquartered in Lafayette, Georgia.

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.