Head to Head Review: Soluna (NASDAQ:SLNH) and Pagaya Technologies (NASDAQ:PGY)

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

Institutional and Insider Ownership

23.2% of Soluna shares are owned by institutional investors. Comparatively, 57.1% of Pagaya Technologies shares are owned by institutional investors. 27.3% of Soluna shares are owned by company insiders. Comparatively, 49.6% of Pagaya Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Soluna 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
Soluna	$39.87 million	0.47	-$29.20 million	($14.56)	-0.15
Pagaya Technologies	$939.31 million	0.76	-$128.44 million	($2.54)	-3.80

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Soluna	0	0	0	0	0.00
Pagaya Technologies	0	3	6	0	2.67

Pagaya Technologies has a consensus price target of $20.00, suggesting a potential upside of 107.25%. Given Pagaya Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Pagaya Technologies is more favorable than Soluna.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Soluna	-75.30%	-45.29%	-24.41%
Pagaya Technologies	-18.48%	1.01%	0.47%

Volatility and Risk

Soluna has a beta of 2.89, suggesting that its stock price is 189% more volatile than the S&P 500. Comparatively, Pagaya Technologies has a beta of 6.11, suggesting that its stock price is 511% more volatile than the S&P 500.

Summary

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

About Soluna

Soluna Holdings, Inc. together with its subsidiaries, engages in the mining of cryptocurrency through data centers. It operates through two segments, Cryptocurrency Mining and Data Center Hosting. The company also operates in the blockchain business. In addition, the company develops and builds modular data centers that use for cryptocurrency mining. Further, it provides data center hosting services, including electrical power and network connectivity to cryptocurrency mining customers. The company was formerly known as Mechanical Technology Inc and as changed to Soluna Holdings, Inc. Soluna Holdings, Inc. was incorporated in 1961 and is headquartered in Albany, New York.

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.