Upstart (NASDAQ:UPST – Get Free Report) and Pagaya Technologies (NASDAQ:PGY – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Volatility and Risk
Upstart has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500. Comparatively, Pagaya Technologies has a beta of 6.44, suggesting that its stock price is 544% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Upstart and Pagaya Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Upstart | 6 | 6 | 0 | 0 | 1.50 |
| Pagaya Technologies | 0 | 2 | 6 | 0 | 2.75 |
Institutional and Insider Ownership
63.0% of Upstart shares are owned by institutional investors. Comparatively, 57.1% of Pagaya Technologies shares are owned by institutional investors. 18.1% of Upstart shares are owned by insiders. Comparatively, 19.7% of Pagaya Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Upstart and Pagaya Technologies’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Upstart | $532.99 million | 5.27 | -$240.13 million | ($2.06) | -15.51 |
| Pagaya Technologies | $812.05 million | 1.32 | -$128.44 million | ($1.41) | -10.70 |
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 Upstart and Pagaya Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Upstart | -32.59% | -27.89% | -9.14% |
| Pagaya Technologies | -10.53% | -4.23% | -2.30% |
Summary
Pagaya Technologies beats Upstart on 12 of the 14 factors compared between the two stocks.
About Upstart
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.
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.
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