SOS (NYSE:SOS) versus Pagaya Technologies (NASDAQ:PGY) Critical Survey

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

Profitability

This table compares Pagaya Technologies and SOS’s 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%
SOS	N/A	N/A	N/A

Volatility and Risk

Pagaya Technologies has a beta of 6.11, suggesting that its share price is 511% more volatile than the S&P 500. Comparatively, SOS has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Valuation and Earnings

This table compares Pagaya Technologies and SOS”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	$812.05 million	0.93	-$128.44 million	($2.54)	-4.03
SOS	$111.12 million	0.07	-$3.65 million	N/A	N/A

SOS has lower revenue, but higher earnings than Pagaya Technologies.

Institutional and Insider Ownership

57.1% of Pagaya Technologies shares are owned by institutional investors. Comparatively, 1.9% of SOS shares are owned by institutional investors. 49.6% of Pagaya Technologies shares are owned by company insiders. Comparatively, 2.7% of SOS shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Pagaya Technologies and SOS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pagaya Technologies	0	2	7	0	2.78
SOS	0	0	0	0	0.00

Pagaya Technologies presently has a consensus target price of $22.11, suggesting a potential upside of 116.14%. Given Pagaya Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Pagaya Technologies is more favorable than SOS.

Summary

Pagaya Technologies beats SOS on 10 of the 12 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 SOS

SOS Limited provides data mining and analysis services to corporate and individual members in the People's Republic of China. It provides marketing data, technology, and solutions for insurance companies; emergency rescue services; and insurance product and health care information portals. The company operates SOS cloud emergency rescue service software as a service platform that offers basic cloud products, such as medical rescue, auto rescue, financial rescue, and life rescue cards; cooperative cloud systems, including information rescue center, intelligent big data, and intelligent software and hardware; and information cloud systems, such as newsToday and E-commerce Today, 10086 hot-line center, information security services, and marketing-related data. It also focuses on cryptocurrency mining, blockchain-based insurance, and security management businesses. The company serves insurance companies, financial institutions, medical institutions, healthcare providers, and other service providers in the emergency rescue services industry. The company is based in Qingdao, the People's Republic of China.