Comparing Pagaya Technologies (NASDAQ:PGY) and Cango (NYSE:CANG)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pagaya Technologies	$1.30 billion	1.15	$81.39 million	$1.36	13.22
Cango	$688.08 million	0.07	-$621.95 million	($23.79)	-0.11

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Pagaya Technologies and Cango, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pagaya Technologies	0	2	8	2	3.00
Cango	1	1	1	1	2.50

Pagaya Technologies presently has a consensus price target of $31.25, indicating a potential upside of 73.80%. Cango has a consensus price target of $30.00, indicating a potential upside of 1,026.13%. Given Cango’s higher probable upside, analysts clearly believe Cango is more favorable than Pagaya Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pagaya Technologies	9.12%	51.56%	19.01%
Cango	-107.22%	-165.48%	-75.08%

Volatility & Risk

Pagaya Technologies has a beta of 5.5, suggesting that its stock price is 450% more volatile than the S&P 500. Comparatively, Cango has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Insider and Institutional Ownership

57.1% of Pagaya Technologies shares are held by institutional investors. Comparatively, 4.2% of Cango shares are held by institutional investors. 42.0% of Pagaya Technologies shares are held by company insiders. Comparatively, 29.1% of Cango shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Pagaya Technologies beats Cango on 14 of the 15 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 Cango

Cango Inc. operates an automotive transaction service platform that connects dealers, original equipment manufacturers, financial institutions, car buyers, insurance brokers, and companies in the People's Republic of China. The company offers automobile trading solutions comprising car sourcing, transaction facilitation, logistics, and warehousing support for dealers through Cango Haoche app that offers new car transaction services, and Cango U-Car app that offers used-car transaction services. It also provides automotive financing facilitation services that include facilitating financing transactions from financial institutions to car buyers, which comprises credit origination, credit assessment, credit servicing, and delinquent asset management services; facilitating financing transactions of car purchases for car buyers; and after-market services to car buyers, which includes facilitating the sale of insurance policies from insurance brokers or companies. The company was founded in 2010 and is headquartered in Shanghai, the People's Republic of China.