CaliberCos (NASDAQ:CWD) versus Pagaya Technologies (NASDAQ:PGY) Critical Review

CaliberCos (NASDAQ:CWD) and Pagaya Technologies (NASDAQ:PGY) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Valuation & Earnings

This table compares CaliberCos and Pagaya Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CaliberCos	$51.12 million	0.25	-$19.78 million	($19.85)	-0.11
Pagaya Technologies	$1.03 billion	1.87	-$401.41 million	($2.67)	-9.00

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CaliberCos	-103.28%	-947.22%	-19.14%
Pagaya Technologies	-15.32%	31.59%	10.99%

Risk & Volatility

CaliberCos has a beta of -0.48, indicating that its stock price is 148% less volatile than the S&P 500. Comparatively, Pagaya Technologies has a beta of 5.83, indicating that its stock price is 483% more volatile than the S&P 500.

Institutional & Insider Ownership

4.1% of CaliberCos shares are held by institutional investors. Comparatively, 57.1% of Pagaya Technologies shares are held by institutional investors. 42.5% of CaliberCos shares are held by insiders. Comparatively, 47.6% of Pagaya Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for CaliberCos and Pagaya Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CaliberCos	1	1	0	0	1.50
Pagaya Technologies	1	2	8	0	2.64

Pagaya Technologies has a consensus price target of $34.67, suggesting a potential upside of 44.20%. Given Pagaya Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Pagaya Technologies is more favorable than CaliberCos.

Summary

Pagaya Technologies beats CaliberCos on 12 of the 14 factors compared between the two stocks.

About CaliberCos

Caliber (NASDAQ: CWD) is a vertically integrated alternative asset management firm whose purpose is to build generational wealth for investors seeking to access opportunities in middle-market assets. Caliber differentiates itself by creating, managing, and servicing proprietary products, including middle-market investment funds, private syndications, and direct investments which are managed by our in-house asset services group. Our funds include investment vehicles focused primarily on real estate, private equity, and debt facilities. Additional information can be found at Caliberco.com and CaliberFunds.co.

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.