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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pagaya Technologies	$939.31 million	0.68	-$128.44 million	($2.54)	-3.43
MGT Capital Investments	$400,000.00	0.00	-$6.13 million	N/A	N/A

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

Insider and Institutional Ownership

57.1% of Pagaya Technologies shares are owned by institutional investors. 49.6% of Pagaya Technologies shares are owned by company insiders. Comparatively, 3.8% of MGT Capital Investments shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

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

Profitability

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

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Pagaya Technologies and MGT Capital Investments, as reported by MarketBeat.com.

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

Pagaya Technologies presently has a consensus price target of $21.13, suggesting a potential upside of 142.54%. Given Pagaya Technologies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Pagaya Technologies is more favorable than MGT Capital Investments.

Summary

Pagaya Technologies beats MGT Capital Investments on 9 of the 11 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 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.